TrueLayer: The Open Banking Payments Platform Powering Pay by Bank at Scale | Review

TrueLayer is the regulated open banking infrastructure provider that enables merchants and platforms to accept instant bank payments, verify account data, and initiate payouts, all through a single API. With eBay, Stripe, and Shopify now routing transactions through its rails, TrueLayer has become the default plumbing for Pay by Bank in Europe.

Founded 2016 | HQ: London | Funding: $322 million | Valuation: $750 million (2024)

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Overview

TrueLayer was founded in 2016 by Francesco Simoneschi and Luca Martinetti in London, at a time when PSD2 was still a regulatory concept rather than a live payments rail. The company set out to build the infrastructure layer that would make open banking work for real commerce, not just data aggregation.

The platform provides three core capabilities: Pay by Bank (instant account-to-account payments at checkout), open banking data access (account verification, balances, and transaction history), and payouts (instant merchant-to-consumer disbursements). TrueLayer claims over 95 percent payment success rates across leading UK banks and published coverage of 98 percent in the UK, 99 percent in Spain, and 95 percent in Ireland.

The customer base now includes category-defining names. eBay invested in TrueLayer in February 2026 and launched Pay by Bank for UK buyers. Stripe selected TrueLayer as its open banking partner, embedding A2A payments directly into Stripe Elements. Shopify merchants can activate TrueLayer's Pay by Bank app from the Shopify App Store. The company is backed by Tiger Global, Temasek, Stripe, Tencent, and Northzone across 10 funding rounds totalling $322 million.

What We Like

Platform partnerships validate the infrastructure bet. When Stripe, the world's largest payment processor for internet businesses, chose TrueLayer as its open banking partner in the UK, it was a signal that the infrastructure is production-grade. TrueLayer is now the first European open banking option inside Stripe's Payment Element. That is distribution at a scale most open banking providers cannot match.

eBay investment anchors enterprise credibility. The February 2026 strategic investment from eBay Ventures was not just capital. It came alongside eBay integrating Pay by Bank into its UK checkout, putting TrueLayer's rails in front of millions of buyers. As we explored in our analysis of how open banking and AI are converging, the companies building the payment initiation layer are positioning for a future where card networks are no longer the default.

UKPI board seat signals regulatory influence. TrueLayer's COO Rob Kerrigan was elected to the board of the UK Payments Initiative, the FCA-backed body delivering variable recurring payments and the next phase of Pay by Bank adoption. Sitting alongside all major UK retail banks in shaping the rules of open banking payments is a structural advantage that competitors without regulatory presence cannot replicate.

Variable Recurring Payments open the recurring revenue use case. VRPs are the open banking answer to card-on-file and direct debit. TrueLayer supports both sweeping VRPs (already live) and is positioning for commercial VRPs under the UKPI framework, which will unlock utility payments, financial services, and government payments. This is the functionality that turns open banking from a one-time checkout option into a persistent payment relationship.

What to Watch

Pricing is not publicly disclosed. TrueLayer offers tiered pricing (Development, Scale, Enterprise) but does not publish rates. Industry estimates suggest transaction fees range from 0.3 to 1.5 percent depending on volume and geography. For a platform built on reducing card network costs, the lack of transparent pricing creates friction for smaller merchants evaluating the switch from cards.

Geographic strength is concentrated in Europe. TrueLayer's coverage is strongest in the UK and EU markets where open banking regulation mandates API access. In the US, where Plaid dominates data aggregation and open banking payment initiation is nascent, TrueLayer has limited presence. Merchants seeking a global A2A payments provider will need to assess coverage market by market.

Valuation has compressed from peak. The $750 million valuation reported in the October 2024 Series E extension represents a decline from the $1 billion-plus valuation at the September 2021 Series E. The company has raised $322 million in total. The eBay investment and strong commercial traction suggest the business is on firmer footing, but buyers in regulated industries should factor valuation trajectory into vendor stability assessments.

Pricing and Deployment

TrueLayer operates on tiered pricing with transaction-based fees for payment initiation. Public estimates place fees between 0.3 and 1.5 percent per transaction, varying by volume and market. A free development sandbox is available for testing. Deployment is API-first, with client libraries for PHP, .NET, and Java/Kotlin. The Drop-in UI handles front-end payment capture. As we noted in our review of payment infrastructure approaches, the API-first model is becoming the standard for modern payment rails.

Compliance and Security

TrueLayer is authorised by the UK Financial Conduct Authority as both an Authorised Payment Institution and an Electronic Money Institution. TrueLayer (Ireland) Ltd is regulated by the Central Bank of Ireland. The platform holds ISO 27001 certification with regular security audits, 24/7 monitoring, and near real-time reconciliation controls submitted to regulators. Fund safeguarding is maintained under FCA requirements.

Verdict

TrueLayer is the strongest choice for mid-market and enterprise merchants in the UK and Europe who want to add Pay by Bank to their checkout, reduce card processing costs, and prepare for variable recurring payments. The Stripe, eBay, and Shopify integrations mean most merchants can activate open banking payments without building a direct integration. Businesses operating primarily outside Europe, or those requiring a global A2A payments provider, should evaluate alternatives with broader geographic reach. With a board seat on the UKPI and strategic backing from eBay, TrueLayer is positioned at the centre of the UK's open banking payments infrastructure for the foreseeable future.

Try TrueLayer: truelayer.com

Editorial disclaimer: Reviews reflect the independent editorial assessment of Major Matters and are not sponsored or endorsed by the companies reviewed. We recommend conducting your own evaluation to determine whether any product is the right fit for your specific requirements.

Charlie Major is a Product Development Manager at Mastercard. The views and opinions expressed in Major Matters are his own and do not represent those of Mastercard.