eBay has launched Pay by Bank, allowing customers in the UK to pay for items directly from their bank accounts.

The online auction site said that shoppers will be able to authorise transactions through their own banking apps, which will ensure payments are instant and secure.

Additionally, the move will ensure that customers do not need to manually enter card details.

To implement the service, eBay has partnered with Open Banking network TrueLayer.

eBay has also made a “strategic” investment in the company for an undisclosed sum.

As Pay by Bank uses bank-grade technology to authenticate the payment, buyers’ bank login information is not shared with or stored by eBay.

In addition to paying by bank, eBay buyers can use a number of popular and relevant payment options including major credit and debit cards, Buy Now, Pay Later, and digital wallets.

All eligible purchases are automatically covered by eBay’s money back guarantee.

“We’re constantly evolving eBay’s checkout experience to expand choice and make paying on our platform safer, faster and more seamless,” said Avritti Khandurie Mittal, vice president of product for eBay services. “Pay by Bank represents an important step in diversifying our payment mix with a secure, real-time way for buyers to pay directly from their bank accounts.”

Earlier this month, Amazon also launched Pay by Bank.

The service is currently available for retail purchases, with it set to be rolled out for Prime membership soon.

The news comes as eBay and Etsy announce they have signed a joint deal to buy London-headquartered consumer-to-consumer (C2C) fashion marketplace Depop for $1.2 billion in cash.

eBay said on Thursday that the move would support its C2C strategy and deepen its reach with a younger market, with nearly 90 per cent of the mobile-first marketplace's seven million active buyers under the age of 34.

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