The 2024 Summer Olympics in Paris has wrapped, with athletes from around the globe delivering a wealth of incredible record-breaking moments. From jaw-dropping gymnastics routines and breathtaking swimming races to nail-biting athletics performances where seconds – or maybe only hundredths of a second – separate triumph and defeat.
Today, the same could be said about the world of payments. Multiple payment solutions are ‘going for gold’ – competing for share of wallet and fighting for the top spot in the checkout. While cards have long been the incumbents, and are defending their turf, they are increasingly challenged by alternatives that are firmly a product of our digital age. Pay by Bank is one prime example. A closer investigation of payment preferences reveals that attitudes are evolving, reflecting broader trends in technology and consumer behaviour.
The recent Instant Economy Payment Insights report by Brite Payments highlights how online payment methods are changing, with Pay by Bank emerging as a top contender based on the factors consumers are prioritising at the checkout. Now, a new generation of Pay by Bank solutions (also known as account-to-account or A2A payments) based on Open Banking is acting as a further catalyst. These modern payment rails facilitate secure, convenient, and instant payments, which is what consumers and businesses want.
However, just like the Summer Games, some countries are leading others. In terms of familiarity with Pay by Bank, as well as usage, there are significant differences. For example, respondents from Spain (92%) and the UK (90%) are already familiar with Pay by Bank, but still can’t match the podium-topping Netherlands, where 97% of respondents have at least some familiarities with the method. In Germany, two-thirds (67%) of respondents are familiar with Pay by Bank, while in France, only 28% of respondents are aware of it.
In terms of frequency of Pay by Bank usage, the Netherlands also leads with 84% using it at least monthly. Spain surpasses the UK in daily, weekly, and monthly online usage of Pay by Bank, while Germany has slightly fewer daily users compared to the UK. France emerges out of medal contention here too, with 7 in 10 respondents having never used Pay by Bank.
Across the markets surveyed for the Instant Economy report, Pay by Bank is more popular among young adults aged 18-29. Specifically, 59% of this age group in Spain use the payment method daily or weekly, while in Germany, around 25% of those aged 18-29 do so. Interestingly, the Netherlands is the only market where an older age group, 30-39 (72%), uses Pay by Bank more frequently than the 18-29 age group (65%) for daily or weekly purchases.
Just like on the lavender-hued track inside the Stade de France, speed is a vital component of what makes online payment methods popular. This is one of the reasons behind the emergence of Pay by Bank. It’s a payment method that typically relies upon top-of-mind information, rather than reaching for card details, and where transactions are instantly reflected on the user's bank account.
Speed is a particularly important factor for Gen Z. Within the research, 39% of respondents from this age group rank it as a top priority when choosing online payment options, some 5% higher than other age groups.
While the need for speed is clear, security remains a crucial consideration for consumers when choosing an online payment method, with its importance increasing with age. Among younger users, 51% rank security as a top three concern. However, for those aged 60 and above, security takes the gold, with 71% placing it on the podium. Cost or fees, and user convenience round out the medal positions, with 82% and 80% of users considering them either very important or important.
Pay by Bank is emerging as an exciting payment method, offering benefits that align perfectly with the demands of modern consumers. Brite’s research highlights that younger demographics especially are increasingly familiar with this method and reporting positive experiences when using it. It’s easy to see why: at its core, Pay by Bank simplifies the transaction process, making it convenient but also secure, and ensuring that payments occur with the speed and safety that individuals value.
Lena Hackelöer is the founder and CEO of Brite Payments, and a recognised leader in the fintech industry, with diverse experience built in businesses including Klarna and Qliro. Lena’s experience makes her uniquely placed to speak knowledgeably about Open Banking and its impact on the wider European payments landscape.
Brite Payments is an instant payments provider leveraging Open Banking technology to process A2A payments in real-time between consumers and online merchants. With Brite, consumers authenticate themselves using their bank’s usual identification method. Brite operates across 21 markets in Europe and is connected to more than 3,800 banks within the EU.
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