Europe's payment industry is undergoing a significant transformation as financial technology companies develop alternatives to traditional card transactions.

A new $27 million investment in London-based TrueLayer highlights growing interest in payment systems that connect consumers and businesses directly through their bank accounts.

Announced in October 2026, the funding round was led by Italy's CDP Venture Capital. The investment comes as European institutions seek to strengthen the continent's financial infrastructure and reduce dependence on international payment networks.

A Major Investment In Digital Payments

Founded in 2016 by Italian entrepreneurs Francesco Simoneschi and Luca Martinetti, TrueLayer specialises in open banking technology.

Its services allow businesses to accept payments directly from customers' bank accounts, providing an alternative to conventional card transactions.

The company currently operates in 22 countries and supports payments for approximately 30 million users. Its customers include major European businesses such as Ryanair and Just Eat.

The latest investment is intended to support the expansion of its Pay by Bank network and strengthen its position in the European payments market.

How Pay By Bank Works

Pay by Bank allows customers to complete purchases directly through their banking applications.

Instead of entering card details, users select their bank, authenticate themselves securely and authorise the transaction.

This approach relies on open banking infrastructure, which enables regulated financial service providers to connect with banks through secure interfaces.

For businesses, direct bank payments may reduce certain processing costs and simplify payment reconciliation.

Consumers may benefit from a more convenient checkout experience, particularly when their banking information is already accessible through a mobile application.

However, the experience varies between providers, and consumer protections may differ from those associated with card payments.

Europe Wants Greater Financial Independence

The investment reflects a broader European discussion about control over essential financial infrastructure.

According to the report, Visa and Mastercard together process approximately two-thirds of card payments in the euro area.

This concentration has prompted European policymakers and financial institutions to explore alternative payment networks.

The European Central Bank is continuing work on a potential digital euro, while several regional payment providers are cooperating to improve cross-border payment connectivity.

These initiatives share an interest in making European payment services more competitive and resilient.

A Growing Network Of Alternatives

Several established payment systems are already working towards greater cooperation.

Among them are Bancomat, Bizum, Wero, Sibs-MB WAY and Vipps MobilePay.

Their collaboration aims to connect existing payment services across national borders, potentially making transactions easier for consumers travelling or shopping internationally.

Unlike a completely new payment platform, this approach seeks to build connections between services that already have substantial domestic customer bases.

However, differences in banking infrastructure, regulation and consumer habits remain significant obstacles.

What This Means For Businesses

For retailers, payment technology can influence operating costs, customer satisfaction and transaction efficiency.

Direct bank payments may offer an additional option alongside cards and digital wallets.

They could also help businesses diversify their payment arrangements rather than relying on a limited number of providers.

Nevertheless, widespread adoption will depend on reliable infrastructure, transparent fees and strong protection against fraud.

Consumers must also feel confident that transactions are secure and that problems can be resolved efficiently.

The Future Of European Payments

TrueLayer's latest funding demonstrates investor confidence in the commercial potential of open banking.

It also arrives at a time when European financial institutions are examining how payment systems can become more interconnected and locally controlled.

Whether Pay by Bank becomes a mainstream alternative will depend on convenience, security, merchant acceptance and consumer trust.

For now, the investment represents another step towards a more diverse European payments market, where customers and businesses may eventually have greater freedom to choose how money moves.