What is an initiated transfer?
Un virement bancaire classique, c’est un ordre de virement passé par le client depuis son espace bancaire : il renseigne les coordonnées bancaires du bénéficiaire (IBAN, BIC), le montant, le libellé et valide. Le compte émetteur est débité, le compte du bénéficiaire est crédité, en 1 à 3 jours ouvrés pour un virement SEPA standard, en quelques secondes pour un virement instantané.
A standard bank transfer is a transfer order initiated by the customer through their online banking platform: they enter the beneficiary’s bank details (IBAN, BIC), the amount, the description, and confirm. The sender’s account is debited, and the beneficiary’s account is credited, typically within 1 to 3 business days for a standard SEPA transfer, or within seconds for an instant transfer.
Why was the standard bank transfer no longer sufficient?
Before initiating a transfer, merchants wishing to accept online payments had to provide their customers with an IBAN and hope the information was entered correctly. Problems were systematic: incorrect amounts, missing references, processing times of 1 to 3 business days, and time-consuming accounting reconciliation.
From the merchant’s perspective, each incoming transfer required manual verification: which customer made this transfer? For which order? The delay between the order and the payment confirmation could block logistics, generate unnecessary follow-ups and degrade the customer experience.
The initiated transfer resolves these frictions: the initiation is automated, the amount and reference are imposed by the merchant, and the reconciliation can be carried out instantly upon receipt of the transfer.
What is the state of the market in Europe?
Pay by Bank still represents a minority of consumer e-commerce transactions, but its growth is significant in certain segments. According to Worldpay’s Global Payments Report (2024), bank transfer payments constitute a growing share of European e-commerce.
On the infrastructure side, the free nature of instant transfers is a structuring change for the market: the argument of the “3-day delay” is gradually disappearing, which strengthens the attractiveness of the initiated transfer for merchants.
In France, the ecosystem is becoming structured: approved EMEs offer native Pay by Bank in their payment offering, supported by initiation API providers (Tink, Powens, Bridge).
It is in this context that Wero, the pan-European initiative led by the European Payments Initiative (EPI), takes place. Wero is technically based on bank transfer initiation and is extending its deployment to e-commerce in France and Belgium during 2026, which should accelerate consumer familiarization with this payment method, and mechanically, expand the addressable market for Pay by Bank in e-commerce.
In what use cases is an initiated transfer relevant ?
The initiated transfer is not suitable for all contexts. It finds its full value in specific situations.
- B2B transactions are the most natural area for this. Companies often have restrictive card limits, and their accounting teams prefer bank transfers for traceability. Initiating a bank transfer offers them a seamless digital experience without limiting the amount.
- B2C e-commerce with high basket sizes also benefits from the initiated transfer, particularly in the furniture, luxury or tourism sectors, where transactions exceed the usual limits of 3D Secure payment.
- Subscriptions and recurring contracts can also rely on the transfer initiated for the first payments or adjustments, in addition to the SEPA direct debit.
Why is this useful in an e-commerce journey ?
For a buyer, the benefit is immediate: no need to manually enter the recipient’s bank details, no risk of error in the amount or description of the transfer, and no waiting period if the transfer is instant. The experience is similar to paying by bank card, while remaining within the banking system.
For a merchant, the advantages are operational. Each received transfer order is linked to a specific order reference, making accounting reconciliation automatic. No more transfers received without a description, incorrect amounts, or manual follow-ups. Once initiated, the transfer is also irrevocable: unlike a credit card, there is no risk of fraudulent chargebacks.
What are the limits to be aware of ?
Despite its advantages, the initiated transfer presents constraints that merchants must take into account in their thinking.
Bank coverage remains a point of friction: not all banking institutions yet expose APIs of consistent quality. The availability of payment flows can vary depending on the payer’s bank, which necessitates maintaining alternative payment options.
The checkout conversion rate is significantly lower than the card conversion rate for inexperienced consumers. Redirecting to the bank interface creates a break in the user experience, even though specialized providers are actively working to streamline it.
The initiated bank transfer does not include a native chargeback mechanism. Unlike card payments, there is no standardized refund procedure in case of a dispute. This is a point of concern for B2C merchants who handle frequent returns.
Finally, adoption varies from country to country. What works in the Netherlands or Germany cannot be directly transposed to France without adapting the customer experience and communication.
What needs to be checked before integrating the initiated transfer ?
Integrating payment initiation into an e-commerce process requires some preliminary checks.
From a technical standpoint, it is necessary to ensure that the chosen payment provider offers native Pay by Bank, and that the confirmation webhooks allow for instant updates of the order status.
On the operational side, accounting reconciliation must be anticipated: the initiated transfer generates flows with a transaction reference, but integration with the ERP or accounting software is a prerequisite to take full advantage of it.
Finally, it is recommended not to replace the card with the initiated transfer, but to offer it as a complement, highlighting it particularly for baskets exceeding a certain threshold or for identified professional clients.
What prospects ?
The entry into force of PSD3, whose implementing texts are expected gradually from 2026, should strengthen the obligations of banks in terms of Open Banking and improve the reliability of payment initiation APIs.
Combined with the widespread adoption of SEPA instant transfers, this regulatory environment is favorable to a wider adoption of Pay by Bank in European e-commerce transactions.
Initiated bank transfers will not replace bank cards in mainstream usage in the short term. However, for certain e-commerce activities, they now represent a mature option, well-regulated, and increasingly accessible technically.
