Coinbase and Tink Offer Pay by Bank Crypto Purchases in Germany

Cryptocurrency exchange Coinbase has launched a partnership with the Visa-owned open banking platform Tink.

The collaboration is designed to allow crypto purchases via pay by bank in Germany, Tink wrote in a blog post Thursday (Oct. 30).

“This partnership adds a new service for Coinbase users in Germany, giving them more choice in how they manage their crypto purchases,” said Thomas Gmelch, head of commercial for Central Europe at Tink.

“Having a Pay by Bank option makes it possible to check out quickly and securely on a mobile device, directly from a bank account.”

As the blog post noted, pay by bank is an open banking-powered payment method allowing consumers to securely and quickly transfer money directly from one bank account to another with no need for manual data entry.

Customers can top up accounts with just a few taps using Tink’s technology, helping to simplify and streamline “access to the cryptoeconomy,” the post added.

“The partnership with Tink is the latest step in making it easier to securely access the crypto economy,” said Denny Morawiak, managing director of Coinbase Germany. “The partnership is part of our constant efforts to expand our service offering in Germany and underscores our commitment to being the most trusted and compliant offering in the German market.”

The partnership came days after Coinbase announced it was teaming with Citi to develop digital asset payment capabilities for the bank’s customers, beginning with its institutional clients before potentially expanding to its other global clients.

In the first phase of this collaboration, the companies aim to focus on fiat pay-ins and pay-outs, supporting Coinbase’s on- and off-ramps and payments orchestration, with other initiatives planned for the coming months.

Meanwhile, research from PYMNTS Intelligence found a lack of awareness among consumers when it comes to pay by bank. The same report suggested that pay by bank’s best chance for gaining traction could come from sectors where consumers already link accounts directly, like betting, ridesharing or investment transfers.

“Young users, particularly Generation Z and millennials, show the highest willingness to experiment,” PYMNTS wrote last month. “More than 40% in both groups express interest in using the method for moving money between bank and brokerage accounts.”

Another unsung factor is ease of use, with nearly 40% of current users saying the simplicity of pay by bank is its chief draw.

“For resistant consumers, that benefit is often invisible. Only 1 in 5 who do not use the method view convenience as a potential selling point,” PYMNTS wrote.