Following this announcement, emerchantpay, a global payment service provider and acquirer, has published a new report that mentions the strong market potential for merchants who prioritise the overall adoption of Open Banking payments early in their transaction strategies.
In addition, the survey of UK-based customers and clients also found that one in two people are unknowingly using Open Banking during the checkout process, with more than half (51%) of the UK population being unfamiliar with the overall term or meaning of Open Banking.
The report mentioned that once customers were informed about Open Banking, 45% of respondents mentioned that they had not heard of the term, while also claiming that they used the service for purchases. This suggests that the term is not widely recognised, but Open Banking payments are actively being used by clients. At the same time, for users that heard of it, the increased significantly to 58%, indicating that, once understood, clients are curious and eager to leverage Open Banking tools.
In addition, the outlook for the solution is also positive, with nearly a fifth (19%) of respondents saying that they will leverage Open Banking more frequently in 5 years’ time. This was compared to 14% saying the same for BNPL and 7% for crypto. At the same time, merchants and businesses in many sectors will have the possibility to leverage the opportunities of Open Banking, with 44% of respondents mentioning that they would use it for online retail, 36% for utility bills, 30% for airline tickets, 34% for hotels, as well as 25% for online subscriptions.
As younger customers demonstrated more awareness of Open Banking, with 25-34 year-olds being most likely to have heard of it before (45%), there also exists an anticipated 32% surge in the use of Open Banking payments among 25-34 year-olds over the next five years. However, more work also needs to be done in order to educate the customers.
Furthermore, merchants will be enabled to use Open Banking to optimise their checkout experiences and meet the changing client expectations and needs. Multiple aspects that customers identified as important in the process of making a purchase online also align with Open Banking solutions, namely security (60%), speed (38%), and privacy (41%).
Banks and financial institutions also have an important part to play in increasing awareness and trust in Open Banking, as two-thirds (66%) of survey respondents stated that they never received communications or information from their bank regarding Open Banking. At the same time, only 17% recalled that they had been notified about it, the percentage representing individuals who were either not sure or did not have a banking account.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now