The holiday season isn’t just a time for festive cheer: it’s the make-or-break period for European e-commerce. In 2024, Mastercard’s SpendingPulse survey showed online sales during the Christmas season surging by 6.9%, outpacing in-store growth and accounting for a significant portion of annual revenues. As we approach the 2025 season, the stakes are even higher.
But here’s the twist: while consumers are ready to spend, they’re also expecting more. A seamless, secure, and swift shopping experience isn’t just a luxury, but a necessity. Enter Pay by Bank.
This payment method isn’t just another option: it’s a game-changer. By enabling instant payments, eliminating chargebacks, and enhancing customer trust, Pay by Bank positions merchants to not only meet but exceed the heightened expectations of today’s digital shoppers.
In this article, we’ll explore how adopting Pay by Bank can transform your holiday sales strategy, ensuring you’re not just part of the season’s buzz but leading it.
Topics covered include:
- Instant Payments Regulation (IPR) – a new standard for Europe
- Capitalising on the golden quarter: Speed, convenience, and customer trust
- 6 ways Pay by Bank supercharges holiday season sales
- Winning the returns battle
Instant Payments Regulation (IPR) – a new standard for Europe
The payments landscape in Europe is entering a new era. With the introduction of the Instant Payments Regulation (IPR), real-time transfers are no longer a convenience but a legal standard. Under the regulation, funds must appear in the recipient’s account within ten seconds, at any time, on any day of the year.
Expectations are set to shift dramatically for merchants and consumers. Instant settlement means cash in hand when it’s most needed—to restock fast-moving items, pay suppliers on time, or handle last-minute orders during the holiday rush. In a season where demand changes by the hour, that liquidity isn’t just helpful: it’s essential.
But IPR isn’t just about speed. The regulation also introduces mandatory name verification, a simple but powerful safeguard against fraud and misdirected transfers. That translates into fewer disputes, less admin, and more peace of mind for both merchants and their customers – an invaluable asset in peak season.
Merchants who adopt Pay by Bank solutions now won’t just be compliant: they’ll be ahead. They’ll deliver payments that are instant, secure, and built on the latest standards. In short, the businesses ready for IPR are the ones ready to turn holiday pressure into profit.
Capitalising on the golden quarter: Speed, convenience, and customer trust
The end-of-year shopping season – often called the ‘golden quarter’ – is a make-or-break period for merchants. Even under challenging economic conditions, many high-end businesses are projected to maintain or grow profit margins. Success during this critical window hinges on seamless, secure, and fast payment experiences that keep customers happy and operations running smoothly.
Merchants as problem solvers
Today’s consumers expect more than products: they expect solutions. Shoppers are frustrated by poor service, unclear policies, and cumbersome online payments.
Merchants can address these pain points directly by offering a Pay by Bank solution. Instant account-to-account payments simplify the checkout process, reduce errors, and create a smoother shopping journey, building loyalty while enhancing the customer experience.
Embracing ‘quick commerce’
The rise of ‘quick commerce’ underscores the importance of speed and convenience across the entire shopping experience – from product selection to delivery. Pay by Bank fits perfectly into this model, letting customers complete payments in a few taps without manually entering card details. The result is a frictionless, instant experience that aligns perfectly with holiday expectations, especially for last-minute shoppers on Green Monday or final-day Christmas orders.
As Chuck Gahun, Principal Analyst at Forrester, notes:
“Quick (fulfilment and delivery within a few minutes) commerce strategies, like in APAC markets, introduce loyalty and fulfilment as levers to drive growth, as well.”
Beyond basic metrics
Success isn’t just about how many payments are accepted. Focusing only on the payment acceptance rate can be misleading. A more holistic metric, like user session conversion, tracks the customer’s entire journey, revealing where drop-offs occur and highlighting opportunities to recover lost sales.
Solutions like Brite Payments provide the insights merchants need to identify friction points, optimise checkout, and increase actual completed sales – not just accepted transactions.
The future of online checkouts
Pay by Bank is redefining the checkout experience. Customers can pay instantly through their familiar banking app using biometrics like Face ID or a fingerprint, without creating new accounts or juggling passwords. Jörg Heilmann, Solution Consultant at Brite, explains:
“Using Brite, consumers remain in a seamless environment at checkout. They are securely redirected to their familiar banking app, authorise the payment in seconds via fingerprint or Face ID, and then return to the merchant’s checkout environment. This is not only more convenient compared to manual transfers, but it demonstrably increases the conversion rate.”
This streamlined, mobile-first checkout approach not only reduces cart abandonment but also positions merchants to capture more sales during the busiest shopping season of the year.
6 ways Pay by Bank supercharges holiday season sales
The holiday season is high-stakes. Every second counts, and every payment matters. Here’s how Pay by Bank helps merchants win big during Christmas and beyond:
1. Eliminate chargebacks and reduce fraud
Unlike credit cards, Pay by Bank transactions are authorised directly from the customer’s bank account. This secure, instant authentication drastically lowers the risk of fraud and removes chargebacks, giving merchants more certainty and financial peace of mind.
2. Secure high-value purchases
With Strong Customer Authentication (SCA) and biometric verification, account-to-account (A2A) payments provide a level of security ideal for expensive items. Both merchants and shoppers gain confidence, reducing friction on big-ticket sales.
3. Improve cash flow
Payments are settled instantly, so rather than waiting days for card payments to clear, merchants receive funds immediately. Faster access to cash means smoother inventory management, supplier payments, and overall operational efficiency.
4. Boost conversion and approval rates
By eliminating manual data entry, Pay by Bank streamlines checkout, reduces cart abandonment, and increases approval rates. Customers can complete transactions in seconds, making it easier for merchants to capture every sale.
5. No more card expirations
For subscriptions or recurring payments, Pay by Bank removes the risk of failed payments due to expired or lost cards, creating a more predictable, stable revenue stream throughout the year.
6. Deliver a premium customer experience
Shoppers expect speed and convenience, especially during the holidays. By removing tedious form-filling and card entry, Pay by Bank simplifies and accelerates checkout, delighting customers and aligning perfectly with high-end, mobile-first expectations.
Read more: Why Instant A2A Payments and Pay by Bank are Perfect for High-Value and Luxury Goods
Bonus: Lower fees, higher margins
By bypassing card networks and intermediaries, transaction costs are often lower, letting merchants keep more of every sale – a critical advantage during the busiest shopping season of the year.
Winning the returns battle
Holiday sales are exciting – but returns can turn that excitement into a headache. After Black Friday, Cyber Monday, and the final days before Christmas, merchants face a flood of returns, with costs running into the billions annually. For today’s shoppers, a seamless return experience is just as critical as a smooth checkout.
Instant refunds build loyalty
Consumers now expect near-instant refunds. In Germany, for example, 15% of shoppers expect payouts within 10 seconds – up from just 4% in 2024 – and nearly half expect instant payments overall. Merchants who can meet these expectations turn a potentially frustrating experience into an opportunity for brand loyalty.
Reduce operational strain
Processing returns manually slows cash flow and adds administrative burdens. With Pay by Bank, refunds can be executed instantly, freeing teams to focus on other operational priorities while ensuring customers get their money back immediately.
Maintain cash flow during peak season
Fast returns satisfy customers and help merchants manage cash flow during the busiest weeks of the year. Instant settlements keep funds circulating, allowing businesses to restock, pay suppliers, and maintain smooth operations even amid a high volume of returns.
In short, mastering the returns process with instant payments mitigates holiday headaches and creates a competitive edge. Merchants who offer instant refunds can reduce friction, strengthen customer trust, and turn seasonal pressure into a lasting advantage.
Read more: Why Pay by Bank is a Game-changer for Black Friday Returns
Add Pay by Bank to your holiday season checkout
Offering Pay by Bank in your checkout is clearly advantageous, but selecting a payments provider that takes the time to understand your brand and help you integrate a system into your flow is essential. Here at Brite, we aim to make the nitty-gritty as easy as possible and get you and your brand up and running quickly. If you would like to talk to one of our payment experts about adding Pay by Bank to your online checkout, get in touch today. Happy Holidays! Merry Christmas! And God Jul as they say!
