Segpay Expands Pay by Bank Service to Eight European Markets via TrueLayer

Segpay has expanded its Pay by Bank service into six new European markets, scaling its open banking footprint beyond the United Kingdom and Germany. By enabling direct account-to-account transfers in Belgium, Finland, France, Ireland, the Netherlands, and Spain, the processor is providing merchants with a payment method that bypasses traditional card networks and eliminates chargeback risks.

What was announced

Segpay is rolling out its Pay by Bank functionality to a total of eight European jurisdictions. The service, which was previously limited to the UK and German markets, is now available to customers in Belgium, Finland, France, Ireland, the Netherlands, and Spain. This expansion allows consumers in these regions to settle transactions directly from their bank accounts, removing the necessity for credit or debit card entry during the checkout process.

The technical infrastructure for the service is powered by TrueLayer, utilizing real-time payment rails to ensure immediate transaction finality. In the European Union, the system leverages the SEPA Instant network, while in the United Kingdom, it operates via Faster Payments. For the end-user, the process involves selecting their financial institution and authorizing the transfer through their existing banking application, typically secured by biometric authentication such as Face ID or fingerprint scanning.

From a merchant perspective, the primary utility of the expansion is the mitigation of chargeback risk. Because these payments are authorized directly through the customer’s bank, they do not fall under the traditional card-network dispute frameworks. The service currently supports one-time purchases in both GBP and EUR. It is compatible with Segpay’s One-Time, Digital Purchase, and Dynamic Pricing billing models, though recurring payment structures are not supported at this stage. The system does, however, maintain support for processing refunds.

The companies involved

Segpay is a global digital payment processor that focuses on providing specialized billing solutions for high-volume and complex merchant categories. The company operates as a bridge between merchants and global financial networks, offering a suite of proprietary tools designed to manage fraud and optimize conversion rates in the digital economy.

TrueLayer, the technology partner for this rollout, is a major provider of open banking infrastructure. The firm provides the connectivity required for businesses to access financial data and initiate payments directly from bank accounts across Europe and beyond. TrueLayer has established itself as a central figure in the shift toward account-to-account (A2A) payments, recently strengthening its market position with a $27 million investment from CDP Venture Capital. The company’s platform is designed to replace legacy card-based systems with faster, more secure digital-native alternatives, serving a wide range of clients from retail platforms to financial services firms.

What FF News has reported before

FF News has closely monitored TrueLayer’s rapid expansion and its role in the evolution of European payment rails. We recently covered how TrueLayer Secured $27M Investment from CDP Venture Capital to further scale its Pay by Bank network across the continent. The company’s influence in the investment sector was also highlighted when Trading 212 and TrueLayer Launch Instant Automated Deposits to streamline funding for retail traders.

Additionally, we reported on the partnership between TrueLayer and SumUp to Launch Instant Pay by Bank Top-Ups, which expanded A2A utility for small business users. Our previous analysis of TrueLayer Data Revealed a 27% Surge in UK Retail Investment Funding, demonstrating the growing consumer appetite for instant, bank-direct transaction methods over traditional card-based funding.

What this means

This expansion is a clear indicator that open banking is moving from a niche alternative to a core requirement for European payment processors. By prioritizing the elimination of chargebacks, Segpay is addressing the single biggest pain point for digital merchants, particularly those in high-risk or high-volume sectors. This move puts significant pressure on traditional card schemes like Visa and Mastercard, which rely on interchange fees and dispute frameworks that A2A payments effectively circumvent.

However, the sector still faces a major hurdle: the lack of support for recurring payments in many open banking implementations. Until Pay by Bank can seamlessly handle subscriptions and automated renewals, card networks will maintain their dominance in the lucrative recurring revenue market. The industry must now address whether the security benefits of A2A can outweigh the convenience of card-on-file for long-term customer relationships.