What is Pay by Bank?
Pay by Bank allows customers to pay securely through their bank’s mobile app or website using Open Banking. There’s no need to input card details, customers authorise payment using their trusted banking interface.
This option is available in both in-person (via Terminal) and remote (via Payment Link) experiences.
Why offer Pay by Bank?
✅ Lower transaction costs
Pay by Bank helps you save around 60% on transaction fees compared to card payments. Higher amounts of transactions result in lower transaction fees.
🏦 Supports 60+ UK banks in Payment Link
Including Monzo, Barclays, HSBC, NatWest, and more. Banks from other regions will be added soon.
🔒 Secure and convenient
Authorised directly by the customer in their bank app or online banking — no cards, no passwords.
How can my customer use Pay by Bank?
Option 1: Via Kody Terminal (in-person)
On the Kody Terminal, enter the payment amount and select the customer’s bank (e.g. Monzo, HSBC, Barclays). A QR code will be generated for the customer to scan using their banking app. Once the payment is approved, a confirmation screen will appear, you can then print receipts if needed and return to the home screen.
Option 2: Via Payment Link (remote)
Create a Payment Link from the Terminal Kody Universe and share it with the customer. The customer opens the link, selects Pay by Bank as the payment method, and chooses their bank. They’ll be redirected to their bank’s app or online banking to complete the payment, then automatically redirected back once it’s done.
Common questions
1. How are refunds handled for Pay by Bank?
Pay by Bank does not support automatic refunds at this time.
To issue a refund:
Please contact the customer directly
Arrange a manual bank transfer to return the funds
Be sure to verify the customer’s account details before processing
2. What happens if the bank delays confirmation?
Sometimes a customer’s bank may perform additional checks, causing a delay in payment confirmation.
If this happens:
A pending status will be sent to you through SMS or Email
The customer may also check their bank app to verify if the payment was successful