School transport ticketing platform ShuttleID has introduced support for payments via open banking with Pay by Bank.
The new functionality allows parents and guardians to pay for school transport directly through their banking app, bypassing traditional card networks.
Parents authorise the transaction through their banking app, ensuring the exact amount is transferred directly to the operator’s account. The payment amount is fixed within the app and cannot be changed by the payer. Once the payment is validated, the system automatically issues a ticket.
The company says the move will cut payment processing costs for operators, while also reducing fraud exposure and admin. According to ShuttleID, transaction costs through Pay by Bank are approximately 66% lower than card fees.
The supplier says the system is particularly beneficial for coach and bus operators handling large volumes of payments, which are at risk from chargebacks, processing costs, and reconciliation processes — for example, if payments are sent to the wrong account, are of the wrong amount, or have inaccurate references. Operators are protected from chargebacks, as transactions are authorised directly within the customer’s banking app and do not have a chargeback mechanism. Where refunds are required, the platform typically returns funds by the next business day.
Alongside the new payment method, ShuttleID has also developed a proprietary booking platform built around the new system. The platform temporarily reserves a seat while a customer completes payment authorisation, preventing capacity from being exhausted mid-transaction and ensuring fairness during peak ticket release periods. It also avoids a situation where a parent successfully pays, but requires a refund due to seats being sold out.
Comments ShuttleID Director Chris Bell: “Open banking was used by a third of UK adults in 2025 and it’s clear that usage and availability of open banking payment methods are only set to grow further.
“Pay By Bank transaction fees are 0.5% + 20p and typically a whole percentage point lower than card fees. We feel it is the right time to enable coach and bus operators to benefit from this additional payment method, and the savings in transaction fees this unlocks.”
Pay by Bank sits alongside existing card and direct debit payment methods on the ShuttleID platform and is available to operators on an opt-in basis. The supplier says its introduction follows a broader trend among major online brands, citing its adoption by Amazon and eBay.
