“We are at the starting line” of open banking payments, says Stripe-backed TrueLayer CEO

Pay by Bank: The Revolution Just Getting Started, Says TrueLayer CEO

The UK’s open banking revolution is only just warming up, according to Francesco Simoneschi, CEO and co-founder of TrueLayer, one of the country’s most prominent fintech pioneers. Speaking on the Tech.eu podcast, Simoneschi offered a candid assessment of where the industry stands, how pay by bank is reshaping online transactions, and what the future holds for both his company and the broader financial technology ecosystem.

TrueLayer, backed by heavyweight investors including Tiger Global and Stripe, has positioned itself at the forefront of the open banking movement. By leveraging open banking technology, the company enables consumers to make direct bank-to-bank payments online—an increasingly popular alternative to traditional card payments that rely on intermediaries like Visa and Mastercard. This shift is not just a technical upgrade; it represents a fundamental change in how people think about and execute digital transactions.

Simoneschi’s assessment is clear: we are only at the starting line. Despite the buzz and growing adoption, pay by bank is still in its infancy compared to the ubiquity of card payments. Yet, the signs of momentum are unmistakable. TrueLayer’s recent “strategic investment” from eBay underscores the growing interest from major players in the e-commerce and financial services sectors. This deal, along with partnerships with giants like Amazon, Just Eat Takeaway, Revolut, and Coinbase, signals a broader industry recognition that the future of online payments may lie in direct bank transfers rather than traditional card rails.

The Amazon partnership, in particular, is seen by TrueLayer as a bellwether for wider consumer adoption. Amazon’s embrace of pay by bank technology is not just a win for TrueLayer; it’s a signal to the market that even the largest and most established retailers are willing to experiment with and adopt new payment methods. Simoneschi believes this is indicative of where consumer behavior is heading: towards faster, cheaper, and more seamless payment experiences.

But the journey hasn’t been without its bumps. TrueLayer, like many high-growth tech companies, has had to make tough decisions to stay competitive. In 2024, the company laid off around a quarter of its staff—a move that, while difficult, reflects the broader challenges facing the fintech sector as it matures and seeks sustainable growth paths.

Looking ahead, Simoneschi is optimistic about the demand for pay by bank, especially among retailers with high-frequency customer relationships. Loyalty programs, he notes, are a key battleground. Many retailers already invest heavily in loyalty schemes, and the integration of pay by bank with these programs could unlock new levels of customer engagement and retention. The ability to link payments directly to loyalty rewards—without the friction of card intermediaries—could be a game-changer for both merchants and consumers.

The conversation also touched on variable recurring payments (VRPs), which many in the industry see as the next big leap for open banking. VRPs allow for more flexible and automated payment arrangements, potentially transforming everything from subscription services to utility billing. Simoneschi highlighted the importance of sovereign payment infrastructure—systems controlled and operated within national borders—as a critical enabler of innovation and security in the digital economy.

As for TrueLayer’s own plans for 2026, the company is focused on scaling its technology, deepening its merchant relationships, and continuing to push the boundaries of what’s possible with open banking. The goal is not just to be a participant in the pay by bank revolution, but to help define its trajectory.

When asked about the possibility of an acquisition by a tech giant like Amazon, Simoneschi was unequivocal: “I would say no. Personally, I am having a lot of fun being an independent company.” This independence, he suggests, is key to TrueLayer’s ability to innovate and adapt in a rapidly evolving market.

In sum, the pay by bank movement is at a pivotal moment. While adoption is still in its early stages, the alignment of technological capability, merchant interest, and shifting consumer expectations suggests that the next few years could see explosive growth. TrueLayer, with its strategic partnerships, investor backing, and clear vision, is well-positioned to be a leader in this transformation. As Simoneschi puts it, we’re only just at the starting line—but the race is well and truly underway.

Tags: open banking, pay by bank, TrueLayer, fintech, online payments, Amazon, eBay, Stripe, Tiger Global, loyalty programs, variable recurring payments, VRP, financial technology, digital payments, UK fintech, e-commerce, card alternatives, sovereign payment infrastructure

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