How Pay-by-Bank Can Unlock New Revenue Streams for Banks Through Lending at the Point of Sale

The Traditional Credit Card Model: Profitable but Exclusive

For decades, credit card issuance has been a highly profitable business for Banks. Issuing Banks earn revenue through interchange fees on every transaction and interest from consumers who carry a balance. However, this market is dominated by fewer than 100 Banks in the U.S., with giants like JPMorgan Chase, Bank of America, and Citibank controlling most of the market.

This leaves thousands of smaller Banks with limited access to this lucrative revenue stream.

Now, technology is changing the landscape. Pay-by-Bank solutions are giving smaller Banks a way to compete—allowing consumers to spend directly from their personal lines of credit (PLOCs) and other lending accounts, just like they would with a credit card.

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LocalPay

LocalPay provides Community Banks with a patented Pay-by-Bank solution that allows Consumers to pay local Merchants directly from their bank accounts without any intermediaries. Merchants are directly connected with paying banks through seamless integration in the FIS, Fiserv, and Jack Henry banking cores to achieve much lower transaction fees with real-time capable settlement and greater Consumer Rewards. LocalPay puts Community Banks at the center of their local economies to increase their Revenue, Deposits, and Consumer lending.

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How Pay-by-Bank Can Unlock New Revenue Streams for Banks Through Lending at the Point of Sale

The Traditional Credit Card Model: Profitable but Exclusive

In Depth

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