Definition
Open banking payments (also account-to-account or pay-by-bank) let a customer pay a merchant directly from their bank account, authorised in their banking app, without entering card details. They rely on regulated open-banking APIs that banks are required to provide in markets such as the UK and EU, and they move money by bank transfer rails, often near-instantly.
There is no card network in the flow, so there are no card interchange fees and no card chargeback mechanism.
For merchants the appeal is lower cost, high authorisation rates (the customer authenticates in their own trusted banking app), instant settlement in many cases, and reduced fraud and chargeback exposure. For customers it is fast and requires no card data.
The trade-offs are narrower geographic coverage, a less familiar flow for some users, and the absence of card-style dispute rights, which shifts more responsibility to the merchant's own refund and complaints handling.
In context
For iGaming operators, open banking is increasingly attractive because it sidesteps several sector-specific payment problems at once: card gambling bans and issuer caution do not apply the same way, processing costs are lower, chargeback abuse is largely removed, and settlement is fast, which supports quick withdrawals. It also provides a strong identity and source-of-funds signal - the payment comes verifiably from an account in the customer's name - which supports KYC and AML checks and affordability assessment.
That same richness raises data-protection considerations: open-banking flows can expose account and transaction information, so operators must have a lawful basis and clear consent for what they access and retain. Responsible-gambling rules still apply fully - deposit limits, self-exclusion and affordability controls must gate open-banking deposits exactly as they gate cards, and the speed of the rail must not be used to bypass friction that exists for player protection.
For affiliates, open banking is a genuine positive to highlight in reviews where an operator offers it: lower friction, no card data, and often faster withdrawals. It is worth explaining to readers that these payments generally lack card chargeback rights, so the operator's own complaints and refund process matters more, which is a reason to favour well-run, licensed brands.
Worked example
An operator adds open-banking deposits in the UK: authorisation rates are higher than cards, costs are lower, and withdrawals settle same-day. Deposit limits and self-exclusion checks gate the flow exactly as for cards.
An affiliate's review highlights the fast withdrawals and no-card-data convenience, and notes that pay-by-bank lacks card chargeback rights so the operator's licensed status and complaints record matter.
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