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What UK CFOs Should Know About Open Banking in Shopify (2025)

Open banking is transforming how UK Shopify CFOs manage cash flow. With faster, cheaper payments like Pay by Bank, finance teams can achieve real-time visibility, accurate forecasting, and operational agility—without relying on card networks.

Key Takeaways:

  • Real-time settlement boosts daily and weekly cash flow forecasting accuracy for Shopify CFOs.
  • Pay by Bank reduces transaction fees by up to 70%, increasing operational margins.
  • Secure open banking APIs provide consistent inflow tracking—critical for financial reporting.
  • Instant payouts eliminate the unpredictability of card processing delays.
  • Open banking integrates with platforms like Wall ID to unlock faster access to cash and spend alignment.

Why Open Banking Matters to Shopify CFOs

In 2025, the UK leads Europe in open banking adoption. Shopify merchants are increasingly offering Pay by Bank options, which leverage direct bank-to-bank payments through secure APIs. Unlike traditional card processing, this method offers:
  • Instant fund transfers (vs. 2–3 day card payouts)
  • Flat-rate or minimal fees (vs. 1.4–3% for cards)
  • Real-time payment visibility for accurate forecasting

Shopify Cash Flow With vs Without Open Banking

Metric
Card payment
Pay-By-Bank
Payout speed
2 - 3 business days
Instant
Fees
1,4% - 3.5% per txn
flat fee
Chargebacks
common
none
Cash Flow Forecasting accuracy
low
high
Real - time insight
no
yes

How Open Banking Works in Shopify

Open banking enables platforms to initiate payments directly from the customer’s bank account to the merchant’s—bypassing card networks and intermediaries.

For CFOs, this means:

  • No authorization delays
  • No batch processing
  • No settlement holds

Example: When a customer pays via Pay by Bank, funds are cleared instantly—ideal for syncing ad spend, inventory restocks, and short-term liquidity planning.

Trend Outlook: Open Banking in Shopify (2025–2027)

According to the UK’s Open Banking Implementation Entity (OBIE), SMB adoption of open banking payments is growing at 10% month over month.

By 2027:
  • Over 50% of UK Shopify stores will offer Pay by Bank
  • Real-time rails will power daily cash flow operations
  • CFOs will embed open banking into AI-based forecasting tools

FAQ

What is Pay by Bank, and how is it different from card payments?

Pay by Bank uses direct bank transfers—bypassing card networks for faster, cheaper, more secure transactions.

Do Shopify stores need third-party apps to use Pay by Bank?

Yes—most stores need a provider like Wall ID to integrate open banking at checkout.

Is open banking secure and regulated in the UK?

Yes—FCA-regulated APIs with SCA-compliant authentication ensure bank-grade security.

How does Pay by Bank improve revenue?

It reduces friction at checkout, increasing completed purchases and boosting conversion rates.

Can Pay by Bank be used alongside cards?

Absolutely—it’s offered as an additional payment option during checkout.

Rated 5 out of 5 stars

“I run a small e-commerce shop in the UK, and WallidPay has fit seamlessly into my workflow. Supporting all major UK banks has made it easy for my customers, and transactions show up quickly. The whole process feels very secure and professional — exactly what I was looking for.”

– Verified Trustpilot Review
Date of experience: 22 April 2025

Speakable

UK CFOs should adopt open banking in Shopify to eliminate delays, reduce transaction costs, and gain real-time cash flow visibility and forecasting precision.
About the Author

This article was written by Wallid’s team of UK fintech experts, focused on helping Shopify CFOs modernize cash flow management through real-time, open banking payments. Wallid provides Pay by Bank technology that cuts transaction costs, improves forecasting accuracy, and eliminates payout delays for high-volume eCommerce stores. Learn more at wallid.co.

2025-07-13 13:17 pay-by-bank for shopify cfo tools