PayDo Launches C2B Settlement Accounts to Accelerate Pay-by-Bank Transactions

Why It Matters

The instant, low‑cost settlement gives merchants faster cash flow and a viable alternative to card payments, accelerating the adoption of open‑banking rails in Europe.

Key Takeaways

• PayDo settles bank‑initiated payments to merchants in under two seconds
• New C2B accounts eliminate manual payment requests and speed cash flow
• Feature leverages Payment Initiation Services, expanding PayDo’s all‑in‑one platform
• Offers merchants a cost‑effective alternative to traditional card processing
• Supports over 350 alternative payment methods alongside Visa/Mastercard acquiring

Pulse Analysis

Open banking has moved from a regulatory curiosity to a practical payment rail across Europe, and PayDo’s latest offering underscores that transition. The UK‑licensed electronic money institution introduced customer‑to‑business (C2B) settlement accounts that sit within its unified e‑money platform. By routing a pay‑by‑bank transaction through the customer’s own banking app and the Payment Initiation Services (PIS) framework, the funds are captured and transferred to the merchant’s business account in under two seconds. This near‑real‑time settlement eliminates the lag that traditionally separates bank‑based payments from card‑based clearing, positioning PayDo as a front‑runner in instant‑settlement solutions.

The operational impact for merchants is immediate. With instant confirmation that funds have cleared, businesses can reconcile sales without waiting for batch processing or dealing with delayed card refunds. The C2B accounts also remove the need for manual payment requests, reducing administrative overhead and the risk of human error. For high‑volume e‑commerce operators, the ability to access cash within seconds improves working‑capital management and enables tighter inventory control. Moreover, the unified account view consolidates incoming payments, supplier payouts, and global transfers, simplifying treasury functions on a single dashboard.

PayDo’s move reflects a broader market shift toward low‑cost, frictionless payment alternatives as merchants seek to diversify away from card‑centric models. Faster settlement not only enhances cash flow but also lowers interchange fees associated with card schemes, offering a competitive edge for price‑sensitive businesses. As more banks open their APIs and regulators encourage competition, providers that can deliver end‑to‑end open‑banking experiences will capture a larger share of the transaction volume. PayDo’s integration of over 350 alternative methods, alongside Visa and Mastercard acquiring, suggests a strategy to become a one‑stop shop for merchants navigating the evolving payments landscape.