Research by TrueLayer and YouGov shows that merchants will embrace Open Banking

The study found that online shopper behaviour is being influenced by the availability of payment options. Having access to different online payment methods was cited by 48% of consumers as a driver for choosing a particular retailer.

Credit and debit cards still dominate at 50%, rising to 63% for purchases over GBP 200, while digital wallets are also popular, with 38% using them as the primary payment method.

The research also revealed that card payment costs are merchants’ biggest pain. Almost half of the merchants surveyed (49%) rated the high cost of payments in their top two pain points with existing payment providers. Almost a third (31%) said it was their biggest pain point. Meanwhile, 36% of merchants rated high fraud and chargebacks in their top two pain points.

Besides, security is the shopper’s biggest concern. 60% of shoppers said they have abandoned an online basket because they were worried about a lack of payment security.

Another highlight of the research shows that 74% of merchants are planning to offer instant bank payments, via Open Banking, as part of their long-term strategy. This corresponds to consumer attitudes, with almost two-thirds (63%) of shoppers would be comfortable paying by Open Banking, particularly for vehicles, car rentals, flight tickets and sporting equipment.

TrueLayer and YouGov surveyed 891 consumers in the UK and Ireland who shop online at least once a month. They also surveyed 350 merchants that sell products online.