emerchantpay research shows demand for Open Banking rises

Wednesday 10 July 2024 14:48 CET | News

Research published by emerchantpay, a global payment service provider and acquirer, has identified key factors influencing consumer preferences for online payment methods.

The top concerns for consumers are security (60%) and privacy (41%), followed by speed (38%) and efficiency (34%).

emerchantpay research reveals growing consumer demand for Open Banking payments

Open Banking payments address these priorities, often exceeding the capabilities of other payment methods. This growing demand highlights the importance for merchants to incorporate Open Banking at the checkout.

The findings align with earlier data from emerchantpay, indicating that nearly 19% of consumers anticipate using Open Banking more frequently within the next five years, surpassing the expected use of BNPL (14%) and cryptocurrencies (7%). However, there is a need to enhance public awareness; previous data revealed that while 51% of the British public were unfamiliar with Open Banking, 58% recognised having used it at online checkouts after an explanation.

The survey, conducted by emerchantpay, involved 2,000 UK consumers and aimed to gain deeper insights into the factors driving payment decisions. Alongside security, privacy, speed, and efficiency, consumers also prioritised the cost of the payment method (29%), data ownership (18%), and account balance transparency (17%).

The need for consumer education on Open Banking

Despite 66% of consumers indicating they had never received communication from their banks regarding Open Banking, 88% stressed the importance of transparency in trusting banks and third-party providers. This underscores the necessity for educational efforts, such as providing brief explanations at the checkout.

Despite the clear advantages of Open Banking, many consumers remain unaware of its benefits and functionalities. Effective educational initiatives can bridge this knowledge gap, fostering greater trust and acceptance. Merchants can play a pivotal role by providing informative materials at the checkout, ensuring consumers understand how Open Banking can enhance their payment experience.

Moreover, financial institutions and payment service providers must collaborate to develop comprehensive awareness campaigns. These efforts should focus on highlighting the security, privacy, and efficiency of Open Banking. By demystifying the process and showcasing real-world benefits, these campaigns can significantly boost consumer confidence and drive wider adoption.

This research coincides with the recent announcement of emerchantpay's partnership with TrueLayer, a European Open Banking payments network. Through this partnership, emerchantpay will enable payments by bank transfer as an online checkout option for merchants across the UK and Europe.With this solution, emerchantpay’s merchants can offer customers the ability to connect to their online banking environment at checkout, providing a secure and seamless payment experience. Customers can complete transactions swiftly by logging into their bank accounts.

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Keywords: research, Open Banking, Open Banking payments, payments , online payments
Categories: Banking & Fintech
Companies: eMerchantPay
Countries: World
This article is part of category

Banking & Fintech


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