The dominance of plastic cards might be ending sooner than we think. Francesco Simoneschi, the chief of TrueLayer, believes the world is merely at the “starting line” of a massive shift toward bank direct payments following a strategic cash injection from retail giant eBay.
This is not just another fintech prediction. It comes from the leader of a company that has already convinced Amazon to change how it accepts money. The message from the top is that the era of open banking is finally moving from niche tech to mass market adoption.
Amazon Deal Signals Major Shift in Shopping Habits
The landscape of online shopping is facing a quiet revolution. For decades, Visa and Mastercard have held a duopoly over how we pay for goods. But TrueLayer wants to break that cycle. The company recently secured a spot on eBay’s cap table and already counts Amazon as a partner. These aren’t just small wins. They are indicators that the biggest players in commerce are looking for alternatives.
Simoneschi explicitly stated that we are “at the starting line” regarding large retailers adopting pay by bank technology.
This specific method allows shoppers to pay directly from their bank accounts. It bypasses the traditional card networks entirely. The result is a transaction that settles instantly and costs the merchant significantly less.
The involvement of Amazon is particularly telling. When a giant like Amazon adopts a new standard, the rest of the market usually follows. Simoneschi noted that this partnership is a signal of where consumer behavior is heading. Shoppers are becoming more comfortable with authorizing payments through their banking apps rather than typing in sixteen digit card numbers.
smartphone displaying open banking payment confirmation screen
“Whenever there is a high frequency of the relationship, there is always an opportunity in the form of loyalty.”
This insight from the CEO highlights the next battleground. It is not just about processing payments. It is about connecting that payment to customer rewards.
Why Merchants Are Desperate to Drop Cards
The driving force behind this shift is simple economics. Merchants have long complained about interchange fees. These are the costs paid to card issuers for every transaction. They eat into margins.
Open banking removes the middleman. By using networks like the UK’s Faster Payments Service, the money moves straight from consumer to business.
Here is why retailers are rushing to explore this technology:
- Lower Fees: Merchants save huge amounts on processing costs.
- Instant Settlement: Cash flow improves because funds arrive in seconds, not days.
- Reduced Fraud: Bank authentication is generally more secure than card details.
- No Chargebacks: The finalized nature of bank payments reduces “friendly fraud.”
Simoneschi believes that the friction of the past is gone. Early versions of open banking were clunky. Today, the user experience is smooth. It is often faster than finding a wallet and entering card details. This improvement in user experience is why companies like Just Eat Takeaway and Revolut have also signed on as partners.
Strategic Investments and Market Sovereignty
TrueLayer is not standing alone in this fight. The company is backed by heavyweights like Stripe and Tiger Global. The recent addition of eBay as a strategic investor adds a layer of retail credibility.
This funding comes at a crucial time. TrueLayer had to make tough choices recently. The company laid off around a quarter of its staff in 2024 to streamline operations. Now, they seem laser focused on growth and profitability.
There is also a geopolitical angle to this story. Simoneschi touched on the importance of “sovereign payment infrastructure.”
Currently, Europe and the UK rely heavily on US based card networks. Building a robust open banking network reduces this dependency. It gives the local economy more control over its own money movement. This is a selling point that resonates with regulators and governments alike.
Despite the high profile backing, Simoneschi remains committed to independence. When asked if an acquisition by Amazon would be a good outcome, he dismissed the idea. He stated he is having “a lot of fun” building an independent company.
The Future Is Recurring and Loyalty Driven
The next phase of open banking goes beyond one off payments. The industry is buzzing about Variable Recurring Payments (VRP).
Think of VRP as a smarter Direct Debit. It allows customers to authorize merchants to take payments within agreed limits. This is perfect for subscriptions or paying utility bills that change every month.
Simoneschi sees loyalty programs as the glue that will stick this all together.
Big retailers want to own the customer relationship. By linking a bank account directly to a store profile, merchants can offer instant rewards. Imagine paying for your groceries with your bank app and instantly seeing your loyalty points update. No scanning separate cards. No waiting.
We can expect to see these features roll out more aggressively by 2026. The technology is built. The regulations are in place. Now it is just a matter of convincing the average shopper to click “Pay by Bank” instead of reaching for their debit card.
The race has started. With eBay and Amazon on board, the smart money is on the bank account winning the war for your wallet.
