Consumer considerations for Open Banking and A2A payments

Duygu Inanc Koyunpınar, Head of Product at DIMOCO, delves into Open Banking and A2A payments and what capabilities matter from a consumer standpoint.

What drives the adoption of A2A and Open Banking payments from a consumer standpoint, and which segments are most receptive to the developments in this space?

For consumers, the key driver is convenience. Account-to-account (A2A) and Open Banking payments allow users to pay directly from their bank accounts, without entering card details, making the process faster, smoother, and more intuitive.

Digital-first consumers who are already comfortable with mobile banking and fintech apps are most receptive to these developments. Younger demographics, particularly Gen Z and Millennials, show a strong preference for payment options that reduce friction. If we focus on Open Banking as a solution, digital services users (streaming, online travel, and mobile-first ecommerce) who are also banked are quick to adopt Open Banking payments because they value a seamless and instant payment experience.

Which are the most common UX challenges of the A2A payment journey, and how do payment and ecommerce professionals address these?

The most common user experience (UX) challenges include inconsistent user flows across banks, confusing authentication steps, and a lack of clarity during the payment journey. Many users still encounter redirect loops or unclear messaging, which can interrupt the flow and lead to abandoned transactions.

To address this, payment providers focus on creating unified and intuitive interfaces that minimise cognitive load and reduce friction during the payment journey.

When it comes to Open Banking, PSPs, with the end user’s consent, utilise their data to improve the UX. This helps maintain continuity and reduces the uncertainty that often comes with being redirected to a new browser window or unfamiliar page. This is done by the PSPs, as currently banks do not provide a standardised experience.

Banks developed APIs because they had to. However, there is still plenty of room for improvement. With the approaching PSD3 directive, everyone’s hope relies on more standardisation, which will help address pain points in end-user flows. Additionally, collaboration between fintechs and banks is increasingly important, as receiving feedback from payment providers contributes to the satisfaction of their own banking customers.

Clarity is also critical. Every step of the journey must be clearly explained, with minimal jargon and maximum transparency. Tooltips, micro-copy, and progress indicators are often used to guide users intuitively, helping them understand where they are in the process and what’s coming next.

Mobile-first design is another key element. Payment journeys must be fully responsive and optimised for speed. On mobile, any delays or hard-to-use elements can lead to frustration and drop-offs.

The first payment experience needs to feel seamless and safe. Once users associate Open Banking with ease and reliability, they are much more likely to choose it again. That’s why it’s essential not only to reduce technical friction but to design for emotional trust and psychological ease.

How do consumers perceive A2A payments in terms of security and reliability, and what influences their trust and willingness to use the payment method?

Consumers generally view Open Banking-based A2A payments as secure, especially because they rely on their own bank’s authentication systems and payment experience. When users recognise their bank, they are more likely to continue.

Additionally, short, in-context explanations, like ‘Secure payment via your bank’, help clarify the process.

Trust and willingness to use Open Banking are shaped by familiarity, branding, and context. Users feel reassured when seeing the logos of trusted banks and a clean, branded experience within a merchant’s website or app. First-time users need a clear explanation of what Open Banking is and how it works. Once they try it and experience a smooth, fast transaction, their confidence grows.

What strategic advantages do A2A/Open Banking payments bring merchants, and which ecommerce verticals present an untapped potential?

Open Banking provides a faster, seamless checkout process, which in turn reduces cart abandonment and increases conversion rates. By enabling direct transfers between the customer’s bank account and the merchant, it eliminates the need for intermediary steps such as entering card details or navigating through third-party platforms. This streamlined process minimises friction, cuts down on errors, and leads to a smoother, more intuitive end-to-end experience. Customers can complete purchases with fewer clicks and less cognitive load, which is especially critical in mobile-first environments.

In addition to improving the UX, Open Banking is also more cost-effective for merchants. By bypassing traditional card networks and associated fees, businesses can decrease their overall payment processing costs. Moreover, chargebacks are significantly reduced as the customer authenticates the payment directly via their bank, and the settlement is instant.

Beyond these immediate benefits, Open Banking presents untapped opportunities in several high-potential verticals. Mobility services, digital subscriptions, online travel bookings, and gaming platforms are particularly well-suited to adopt Open Banking solutions. These sectors often depend on repeat purchases or recurring billing models, where user retention and payment consistency are essential. Integrating Open Banking payments in these contexts not only enhances convenience for users but also strengthens merchant operations through lower transaction costs. This frictionless experience can foster stronger customer loyalty, increase lifetime value, and create a competitive edge in markets where UX is a key differentiator.

 

This editorial piece was first published in The Paypers' Account-to-Account Payments Report 2025, which features insights into global trends, key players, partnerships, and the next phase of the A2A evolution. Access the full report to understand where the A2A payments ecosystem stands today and what’s next.

 

About the author

 

Inanc Koyunpınar is Head of Product at DIMOCO, bringing over 15 years of experience and a strong technical foundation. She has successfully led the end-to-end design of customer-centric products across Turkish, Austrian, and EU markets, with a focus on the telecommunications and banking-fintech sectors. With a solid track record in strategic decision-making and P&L management within payments, Duygu has held key positions at companies including Bank99, ING, and Turkcell.

About DIMOCO

DIMOCO is an Austrian licenced payment institution, acquirer, and carrier billing provider with 20+ years’ experience. It provides designed paytech solutions to access the digital economy and meet every customer need. With expertise in innovative set-ups, DIMOCO partners with merchants, creating agile solutions enabling them to go beyond their goals.