Can Europe’s fintechs take on Apple Pay?

2026-04-14 · Source: Sifted · Field: Finance & Economics — FinTech & Digital Financial Services, Banking & Financial Services · Depth: Novice, short

Summary

European fintechs are increasingly developing direct payment options to reduce their dependence on Apple Pay and Google Pay, driven by the tech giants' transaction fees which can range from 0.15% to 0.30%. Revolut, a prominent fintech, reported over 300% growth in its direct payment option in the UK and Ireland in 2023, processing 9.1 million transactions. Other companies like TrueLayer and Volt are also launching "Pay by Bank" solutions, leveraging Open Banking and PSD2 to create alternative payment rails. This strategic shift aims to offer a more cost-effective and controlled payment experience for customers, challenging the established dominance of Apple and Google in the digital payments market. While requiring significant investment and consumer adoption, this movement represents a substantial effort by European fintechs to reclaim control over the payment process.

Key takeaway

European fintechs are aggressively launching direct account-to-account (A2A) payment options, leveraging PSD2 and Open Banking to bypass card networks and challenge Apple Pay/Google Pay dominance. Revolut, for example, reported over 300% growth in its direct payment feature in 2023, significantly reducing transaction costs for merchants by avoiding typical 0.15% card fees. This shift offers businesses substantial savings and greater control over payment flows, making A2A integration a critical strategic consideration for payment providers and merchants.

Topics

• Fintech
• Apple Pay
• Google Pay
• Direct Payments
• Open Banking

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.