A consumer expert from the BBC has raised concerns about a new payment method called 'pay by bank', which is gaining popularity among online shoppers, particularly on platforms like Amazon. This method allows consumers to pay directly from their bank accounts without entering debit or credit card details, presenting a significant shift in the way transactions are conducted. While its usage has surged, with more than 36 million transactions recorded in the UK alone in January 2026, experts warn that this could lead to a reduction in consumer rights and protections that traditionally accompany card transactions.

Peter Ruddick, appearing on BBC Breakfast, emphasized that while the increase in pay-by-bank transactions seems to indicate a positive trend in consumer convenience, the underlying mechanics of bank transfers could expose users to risks. Unlike credit and debit card transactions, which often come with protections against fraud and unauthorized transactions, pay by bank relies on older transfer methods that may not offer the same safeguards. This change poses questions about the security of consumer funds and the accountability of platforms that choose to adopt such payment processing methods.

As online shopping continues to evolve, the implications of this new payment option could set precedents for other retailers and create a shift in consumer behavior. The growing preference for direct bank transfers could lead to wider adoption across various sectors, but it is crucial for consumers to be aware of the potential loss of protections. The warning from the BBC expert serves as a critical reminder for consumers to consider the security and rights associated with different payment methods before making transactions online.