Brite Payments Secures FCA License to Launch Instant Pay by Bank Services in UK

Brite Payments has secured an Electronic Money Institution (EMI) licence from the Financial Conduct Authority, marking its official entry into the UK market. This launch introduces a cross-border Pay by Bank service designed to eliminate checkout friction, offering fintech professionals a significant new alternative to legacy card networks in one of the world's most mature open banking ecosystems.

What was announced

Brite Payments is rolling out its cross-border Pay by Bank service in the UK following its successful FCA licensing. The service allows UK-based merchants to accept instant payments and process payouts both domestically and across 27 European markets through a single API integration. This eliminates the need for businesses to manage multiple local providers or endure the slow settlement times typically associated with traditional cross-border transactions.

The launch is supported by research highlighting the severity of checkout friction in the British market. A study of 2,000 UK adults conducted by market research firm Appinio on behalf of Brite Payments found that 47% of shoppers experience "checkout rage" during online transactions, with 1 in 6 admitting to shouting or swearing at their screens. Furthermore, 24% of consumers have avoided a purchase altogether due to anxiety regarding returns, while 15% admit to buying less so that less of their money is tied up if they require a refund.

The reputational risks for merchants are high; 19% of respondents stated they would actively blacklist a retailer with poor payment options, and 17% admitted to warning their friends and family away from certain retailers. Brite’s infrastructure, developed over the past six years, now connects more than 3,800 banks. The UK rollout will be phased, focusing on leveraging this network to provide a seamless alternative to the overseas card networks that currently dominate the British landscape. By utilizing open banking, the service aims to provide a more transparent and immediate payment flow for both the merchant and the end consumer.

"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. 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."

Lena Hackelöer, founder and CEO at Brite Payments.

The companies involved

Brite Payments is a European payments provider that has established a significant footprint across the continent by focusing on the "Pay by Bank" model. The company specializes in instant payment and payout technology, aiming to bypass traditional card schemes in favor of direct bank-to-bank transfers. Over the last six years, it has built an extensive network that bridges thousands of financial institutions, positioning itself as a challenger to established payment processors.

The fintech landscape in which Brite operates is heavily influenced by major players like Klarna, which has a massive presence in the flexible payments and Buy Now, Pay Later (BNPL) space. While Klarna has expanded through numerous partnerships with retailers and platforms, Brite focuses on the underlying settlement layer and instant account-to-account (A2A) transactions. The sector also sees significant involvement from investment firms such as Dawn Capital, which frequently backs high-growth European fintech ventures. Brite’s entry into the UK market places it in direct competition with both legacy providers and other open banking pioneers within this highly developed financial ecosystem. The company’s focus on cross-border capabilities distinguishes it from many domestic-only providers, as it seeks to unify the fragmented European payment landscape under a single integration point.

What FF News has reported before

FF News has extensively covered the evolving European payment landscape, particularly the growth of flexible payment options and cross-border integrations. Recent reports include Klarna and Alza.at Partner to Launch Flexible Payments for Austrian Shoppers and Solidgate and Klarna Partner to Scale Flexible Payments Across Europe. Additionally, the integration of these services into broader business tools was highlighted in Klarna Integrates with HubSpot to Bring Flexible BNPL Payments to SMBs, while the expansion into specialized sectors was seen in Flex Dental Solutions Launches BNPL and Surcharging to Boost Practice Revenue.

What this means

The arrival of Brite Payments in the UK signals a heightening of the "Pay by Bank" movement, putting immediate pressure on traditional card networks like Visa and Mastercard. While open banking is well-established in Britain, the cross-border element remains a significant pain point for merchants dealing with post-Brexit complexities. By offering a single API for both domestic and European transactions, Brite is challenging the necessity of multi-provider setups. The industry must now consider whether A2A payments can finally overcome the consumer habit of card usage, especially as "checkout rage" suggests that the current user experience is failing to meet modern expectations.