Pay-By-Bank, Not What You Think It Is with Guest Sarah Stapp
Wrestling Payments Podcast: Season 3 - Episode 05
Sarah Stapp, Chief Commercial Officer at Aeropay, joins Joseph Casali to break down the shifting landscape of payments—especially the rise of Pay by Bank. Sarah shares her unconventional journey into fintech, from Craigslist job ads to leading global expansion at Braintree, before diving deep into ACH rails and real-time payments.
She explains why Pay by Bank is more than just a buzzword. It’s about giving consumers fast, secure options to pay straight from their bank accounts—without the overhead of card networks. From gaming to insurance, Sarah highlights how RTP and FedNow are shaping user expectations around speed and control.
They also explore how payment orchestration is evolving, what “guaranteed ACH” really means, and the signals to watch as Pay by Bank gains traction in the U.S. With consumer behavior driving adoption more than regulation, Sarah makes the case for why merchants—and financial institutions—should be paying close attention.
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Guest-at-a-Glance
💡 Name: Sarah Stapp
💡What they do: Chief Commercial Officer
💡Company: Aeropay
💡Noteworthy: Spent 12 years at Braintree, helping lead global expansion.
💡 Where to find them: LinkedIn
Key Insights
Pay by Bank Isn’t the Future—It’s Already Here
Pay by Bank is more than a payment trend—it’s a working solution already delivering value across industries. Sarah explains how it enables direct bank-to-bank payments using ACH rails and mobile authentication. While still evolving in the U.S., Pay by Bank is gaining traction, especially in verticals like gaming, where payout speed is a top priority. Sarah argues that consumers are driving the shift more than regulation, and merchants are following suit to reduce costs, minimize chargebacks, and improve user experience. Unlike in Europe, where open banking is standardized, the U.S. model is more fragmented, but innovation is happening through providers like Aeropay. Sarah emphasizes the importance of education to help both merchants and consumers embrace it.
Instant Payouts Are Becoming a Competitive Advantage
Real-time payments (RTP) and FedNow are reshaping how consumers expect to receive money. Sarah points to online gaming and digital wallets as early adopters, where users choose platforms based on how quickly they can cash out. For many, the promise of instant access to winnings or wallet balances—even at a small fee—is enough to shift behavior. But the implications go far beyond gaming. Insurance claims, contractor payments, and even rent reimbursements are ripe for disruption. The old model of waiting days for a paper check or a delayed ACH transfer no longer fits the expectations of today’s users. As Sarah puts it, the market—not regulators—will determine how and where instant payments take hold.
Guaranteed ACH Reduces Risk for Merchants
ACH has traditionally come with uncertainty—no instant confirmation, no real-time authorization, and the risk of insufficient funds. Sarah introduces “guaranteed ACH” as a way to mitigate these risks. With guaranteed ACH, providers like Aeropay cover the potential losses from failed transactions. Merchants benefit from fewer chargebacks, better cash flow, and predictable payment outcomes. Sarah compares it to the comfort of card authorization codes but in the ACH world. While instant pay-ins aren’t yet universally available, guaranteed ACH fills the gap for businesses that want speed and security without the cost of card networks. This insight highlights how payment providers are layering in tools that remove friction and protect both sides of the transaction.
Payment Orchestration Is More Than Smart Routing
Sarah unpacks the often-misunderstood concept of payment orchestration. It’s not just routing transactions based on volume or provider—it’s a data-driven layer that optimizes every payment. Orchestration includes smart routing, yes, but also centralizes customer data, reduces cost, and enhances user experience. Sarah points out that orchestration opens new possibilities in marketing, customer support, and business intelligence by leveraging rich payment data. The goal is not just to move money efficiently, but to connect systems in a way that unlocks new value across the organization. This elevated view of orchestration reflects how payments strategy has become a core part of business strategy.
Episode Highlights
From Rock Star Dreams to Payment Leader
Timestamp: [00:01:00]
Sarah Stapp shares her unconventional path into the payments industry, starting with dreams of being a musician before landing a job at Braintree via a Craigslist ad. Her candid backstory highlights how many professionals "fall into" payments without a traditional finance or tech background. She reflects on how this accidental entry turned into a deep passion and lifelong career in the space. Sarah also details her time scaling Braintree globally and what she learned leading payment expansion across 37 countries.
"I think like most people that are in payments, nobody plans to fall into the world of payments. Somebody taps you and says, ‘Hey, I got this project for you.’ Or you apply to a job posting and then you’re sucked in and you can’t get out. I actually say the payments industry is like Hotel California. You can check out anytime you like, but you can never leave."
Defining Pay by Bank in the U.S. Context
Timestamp: [00:08:30]
Sarah offers a clear, real-world definition of what Pay by Bank actually means—especially in the fragmented U.S. environment. She contrasts the structured open banking systems in Europe with the U.S., where there’s no standard yet and the term still causes confusion. The core idea, however, is simple: enabling consumers to pay directly from their bank accounts, typically via ACH. Sarah emphasizes the customer experience, pointing out that successful adoption hinges on a familiar, frictionless checkout process on mobile.
"Pay by Bank" is understood, I think, by most people in a layman's sense, right? Of 'I'm paying with my bank.' That’s pretty simple... But it’s really the technology and the data that make Pay by Bank the future. It’s already here in certain verticals, but we’ll see it expand into new use cases."
The Role of Consumer Behavior in Payment Innovation
Timestamp: [00:21:00]
Sarah and Joe dig into how consumer preferences—not regulation—are the true drivers of payment innovation. She argues that unless a new payment method makes things easier, faster, or more rewarding for users, it won’t take off. The conversation covers the parallels between consumer adoption of PayPal in its early days and the emerging traction of real-time payouts. Sarah reinforces that the success of Pay by Bank depends on offering real value, especially to younger generations who want convenience without debt.
"You can do all you want, but it’s the cardholders who decide what happens. You have to make it easier, faster, or give them something for their trouble. If it doesn’t do at least two of those three things, nobody’s going to change their behavior."
Why Younger Generations Are Skipping the Credit Card
Timestamp: [00:30:00]
The episode wraps with a discussion about changing generational attitudes toward money. Sarah explains how younger consumers—especially millennials and Gen Z—are skeptical of debt and more likely to skip traditional credit products. Instead, they gravitate toward direct bank payments that align with their financial goals and digital lifestyles. Sarah sees this as a natural driver for Pay by Bank adoption, especially as usage data shows rising ACH volumes and falling credit card use.
"I think a lot of younger folks, millennials and Gen Z, they’re like, ‘I don’t want to be in a bunch of debt. I don’t want a $500,000 house. I want to live simply and within my means.’ But they also want this simple way to pay—no one wants to carry cash or a checkbook anymore."
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