Mollie has confirmed a partnership with payments infrastructure provider Ivy to support the launch of its Pay by Bank service. The agreement enables Mollie to offer real-time account-to-account (A2A) payment capabilities to its merchants across Europe.
Through this arrangement, Mollie will use Ivy’s API-based technology to process direct bank transfers and refunds. The integration is designed to facilitate lower transaction costs for merchants, enable quicker access to funds, and support fraud mitigation measures through direct authentication with users’ banks.
Technical Integration and Merchant Access
Ivy’s platform connects to over 5,000 banks and supports white-label implementation. Mollie’s Pay by Bank solution has been embedded into its merchant dashboard, where businesses can activate the feature with limited configuration. Ivy’s documentation and development tools have also been made available to assist in the rollout process.
The service allows end customers to initiate payments by selecting their bank, confirming the payment amount, and authenticating using their bank’s security methods—such as biometric or app-based approval. No card details or account creation are required for the end user.
Technical Considerations and Implications
The integration of Ivy’s infrastructure into Mollie’s payment environment involves the implementation of an API-driven, account-to-account (A2A) transaction model. This architecture allows direct communication between a user’s bank and the merchant’s platform without intermediary card networks. The adoption of such a framework relies on open banking protocols and secure customer authentication (SCA) mechanisms under existing regulatory guidelines, such as the EU’s Revised Payment Services Directive (PSD2).
Technically, this approach reduces the dependency on acquirers, card issuers, and other third-party processors, instead routing payment instructions directly via banking channels. Ivy’s white-label solution abstracts these connections through a unified interface, simplifying the process for payment service providers like Mollie while offering flexibility across banking institutions and markets. The backend must handle consent management, session security, and error handling consistently across a fragmented banking environment, which may involve varied API standards and authentication flows.
Potential Operational Benefits
From a platform perspective, the benefits of integrating A2A payment infrastructure include cost rationalization, particularly in terms of reduced interchange and scheme fees commonly associated with card-based transactions. Real-time settlement further enhances liquidity for merchants by reducing the time between payment initiation and fund availability. Additionally, the reliance on bank authentication may lower exposure to certain types of fraud, including chargebacks and credential theft, since sensitive card data is not stored or transmitted.
The system also presents the opportunity to unify the refund process within the same rails, enabling automated reconciliation and faster returns to the consumer. For merchants operating at scale, such efficiency can translate into improved cash management and simplified back-office operations.
Shift in Infrastructure
This partnership comes amid broader changes in the payments landscape, where account-based payment models are replacing legacy systems in multiple jurisdictions. The companies state that this move aligns with ongoing efforts to adapt to newer payment rails that support real-time settlement and improved cost efficiency.
Johannes Claudi, Principal Product Manager at Mollie, stated that the selection of Ivy was based on its integration model, geographic reach, and conversion support. Ivy CEO Ferdinand Dabitz noted that the company’s focus is on enabling real-time bank payments for enterprise and platform clients as traditional payment infrastructure is phased out.
Ivy, which maintains offices in Berlin, London, Munich, and Helsinki, has secured $30 million in funding to date. Mollie serves over 250,000 businesses and continues to develop its banking and payments portfolio across Europe.
