What is a payment initiation service? How apps start bank payments for you
By SendPay Business · · 2 min read
A payment initiation service lets an authorised app or website start a payment straight from your bank account, with your permission. The firm offering it is called a payment initiation service provider, or PISP. It's one of the two main services open banking made possible.
How a payment works
- At checkout you choose to pay by bank and pick your bank.
- You're sent to your bank's app or website and log in there, not with the shop.
- You approve the payment, and the bank sends it, usually by Faster Payments in the UK.
- You're returned to the shop with the payment confirmed.
PISP vs AISP
A PISP starts payments. An account information service provider (AISP) reads your account data, such as balances and transactions, with your consent, for things like budgeting apps or affordability checks. Both need to be authorised by a regulator such as the FCA.
Compared with cards
Payments go straight from bank to bank, so there are no card scheme fees, and no card details are shared. But card payments come with chargeback rights that a bank payment doesn't have in the same way.
Where SendPay fits
SendPay platforms let your customers take payments by card through payment links, invoices and subscriptions, and send bank transfers, under your own brand and powered by licensed partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.