Fiserv, Grocer Expand Pay-by-Bank Effort

Why It Matters

Pay‑by‑bank reduces merchants’ card‑processing costs while giving shoppers a faster, more secure checkout, accelerating adoption of instant‑payment infrastructure across U.S. retail.

Key Takeaways

• Fiserv expands pay‑by‑bank pilot with Ahold Delhaize USA
• Program now covers Giant, Giant Food, Stop & Shop brands
• Tens of thousands already enrolled, bypassing card fees
• Real‑time payment networks enable instant bank transfers for retailers
• Walmart and Kroger also exploring similar bank‑based checkout

Pulse Analysis

Retailers are increasingly turning to bank‑direct payment methods as real‑time payment networks mature. The Clearing House’s RTP and the Federal Reserve’s FedNow service have lowered latency and operational risk, making instant debit transfers a viable alternative to traditional card schemes. This shift allows merchants to sidestep the 1‑3% interchange fees charged by card issuers, improving margins while delivering a frictionless checkout experience for consumers accustomed to digital wallets.

Fiserv’s expanded partnership with Ahold Delhaize USA illustrates how grocery operators are leveraging this technology at scale. After a successful pilot on The Giant Company, Giant Food and Stop & Shop, the pay‑by‑bank option is now fully integrated across the brands’ e‑commerce sites and mobile apps, giving tens of thousands of shoppers a direct‑bank checkout button. The solution links customers’ bank accounts via secure tokenization, eliminating the need to enter card numbers and reducing fraud exposure. For Ahold Delhaize, the rollout promises lower transaction costs, higher conversion rates, and a differentiated omnichannel experience that aligns with evolving consumer preferences for simplicity and security.

The broader industry impact is significant. Fiserv’s simultaneous agreements with Walmart and interest from Kroger suggest that pay‑by‑bank could become a standard checkout lane in U.S. retail, especially as merchants seek to capture cost savings and meet demand for instant payments. As adoption grows, banks may see increased account‑level transaction volumes, while fintech providers could develop value‑added services such as spend analytics and loyalty integration. Ultimately, the expansion underscores a pivotal move toward a card‑less future, reshaping the economics of retail payments and setting a new benchmark for digital commerce efficiency.