Customers demand Open Banking payments for better experience, Nuapay

This follows recent findings that highlighted a raft of payment card security failings. The news comes as retailers ready themselves for the busy festive shopping season - an event that is even more important in 2020 as businesses seek to plug pandemic losses. The study approached over 2000 UK consumers and found that 52% of payers choose their payment method based on convenience and ease of use, yet 30% reported that their biggest concern about shopping online is the time it takes to input card details and process payments. 

Perhaps most worrying is that a quarter of consumers (25%) said they have lost out on purchasing goods or services, such as concert tickets and limited-edition clothing ranges, online or on their mobile because inputting their card details took too long. This rises to 47% of 16-24-year olds and 44% of 25-34-year olds - two key demographics for many online retailers. Indeed, research found that in 2019 this age range had the highest percentage of online shoppers, with 97% of these adults shopping online within 2020. 

The research found 54% of UK consumers would be willing to use Open Banking as an alternative way to pay.  This rises to 64% of consumers who use mobile banking and can benefit from the most convenient Open Banking payer experience. The younger generations are leading the demand for Open Banking solutions, with 75% of consumers under 34 willing to use Open Banking to make a payment. Consumers are more willing to use Open Banking payments for everyday retail, such as groceries, (42%), than big-ticket travel items like flights and package holidays (39%). Financial services (45%), charities (45%), and government (44%) are also all likely to see high adoption rates. 

When using Open Banking payments, rather than inputting card details consumers simply authenticate the payment on their mobile device within the natural user flow. By speeding up the process, the user experience is improved, and customers are much less likely to lose out on purchases, as well as reducing the likelihood of abandoned online shopping carts. A key blocker to this technology becoming mainstream appears to be a lack of understanding. 37% of consumers stated that they would be willing to make an Open Banking payment if they had increased understanding of Open Banking technology, its security features, or how the payment experience is more convenient than using cards.