Brite launches Pay by Bank in UK after FCA licence

Brite Payments has launched its Pay by Bank service in the UK after receiving an Electronic Money Institution licence from the Financial Conduct Authority.

The Stockholm-based payments company said the rollout gives merchants access, through a single application programming interface integration, to its network of more than 3,800 banks across 27 European markets. Businesses can accept Pay by Bank transactions in the UK and across Brite's wider European network, alongside payouts.

The expansion marks Brite's entry into one of Europe's most established open banking markets. Founded in 2019, the company has built its business around account-to-account payments and says it has spent six years developing infrastructure to connect fragmented banking systems across the region.

The UK launch comes as Brite seeks to position itself as an alternative to card-based payment methods and domestic account-to-account providers that operate in only one market. The company is backed by USD $60 million in funding led by Dawn Capital.

Consumer friction

Alongside the launch, Brite published survey findings on payment problems British online shoppers face. Research conducted by Appinio among 2,000 UK adults found that 47% of respondents had experienced what Brite described as checkout rage when shopping online.

The data highlighted several sources of friction. One in six respondents said they had sworn or shouted at a screen during checkout, while 23% said they had abandoned a purchase rather than look for their physical card. The survey also found that 25% had experienced a failed payment because of an input error, an expired card or a security check problem.

Returns were another issue highlighted in the findings. Nearly a quarter of those surveyed said they had avoided a purchase because they were anxious about the refund process, while 15% said they bought less to limit the amount of money tied up if they needed to return goods.

For merchants, the research suggested payment issues can affect customer retention as well as conversion. Nineteen per cent of respondents said they would blacklist a retailer with poor payment options, and 17% said they had warned friends or family away from certain retailers.

Cross-border focus

Brite is targeting merchants that sell across several European markets and want a single connection for bank-based payments and payouts. The company argues that many existing account-to-account providers struggle once retailers need to manage different local banking standards, settlement arrangements and support requirements across borders.

The UK has more than 15 million open banking users, according to figures cited by Brite, and the survey found that 76% of British consumers were familiar with Pay by Bank. That combination makes the market strategically important for a payments provider looking to scale account-to-account transactions beyond domestic use.

The survey also pointed to consumer interest in payment providers based closer to home. More than 60% of respondents said they would rather use a provider that was not at risk of disruption from problems in another country, while 58% said they would choose a UK or European company over an overseas alternative when given the option.

Lena Hackelöer, Founder and Chief Executive Officer of Brite Payments, linked the company's UK move to those market trends.

"The UK is one of the most mature open banking markets in the world, but it's been dominated by overseas card networks and reliance on legacy providers built for a single market. Both merchants and consumers are not just losing out, but are actively impacted, as our survey results show," said Hackelöer.

The UK launch will take place through a phased product rollout, suggesting Brite plans to expand services progressively rather than switch on its full product set at once.

Hackelöer, a former Klarna executive, leads the business, which is headquartered in Stockholm. Since launch, it has focused on building direct connections into local payment rails and open banking systems across Europe rather than relying on a patchwork of separate third-party relationships in each market.

That model reflects a wider shift in European payments, where open banking is moving from data-sharing to transaction processing. While the UK was an early leader in open banking adoption, scaling account-to-account payments across borders has remained difficult because banks and payment schemes still operate under different technical and operational standards from one market to another.

Brite says its network is designed to address those differences through a single merchant integration. For UK retailers selling into Europe, its pitch is that one connection can replace multiple local provider relationships.

"Today's launch is an exciting moment in a post-Brexit world, as UK merchants can easily start offering Pay by Bank to their local customers and customers across Europe, enabling their expansion internationally," said Hackelöer.