Open banking payments adoption rates are increasing, according to the latest report from Access PaySuite, the payments solutions provider.
Since its launch in 2018, the adoption of open banking payments has also grown. A number of businesses have already listed it on their websites including lenders (42 per cent), building societies (17 per cent), and credit unions (11 per cent).
Despite this, a recent survey carried out by Access PaySuite found that consumers revealed a mixed picture when it comes to adoption and attitudes towards open banking payments, also known as pay-by-bank.
Just over a third (34 per cent) currently use open banking technology to make payments in financial services, while 22 per cent would like to do so in the future. Meanwhile, around 16 per cent haven’t used it and are reluctant to. Another 13 per cent said they’d never use it, while 15 per cent remain unsure.
The research also found that younger demographics are more likely to use open banking payments – with nearly half of 25 to 34-year-olds, and 37 per cent of 18 to 24-year-olds, using it to make payments. However, over one in four of the over-55s category have used open banking to make payments, and a further 17 per cent are interested in using it to make future payments.
‘Open banking invites businesses to reap the rewards’
Giulio Montemagno, managing director of Access PaySuite
Giulio Montemagno, managing director of Access PaySuite, said: “Digital payment methods are more popular than ever, but financial services must evolve to meet all customer needs. Offering a variety of quick, frictionless payment options is crucial. While open banking adoption is on the rise, there is a significant need to educate consumers about its benefits and alleviate their concerns.
“Some customers feel their current financial services do not meet their payment expectations. This highlights a clear opportunity for innovation in the industry to address these gaps and adapt to evolving consumer demands. This shift not only enhances customer experience but also drives the industry towards a more inclusive and efficient future.
“Aside from this, the benefits of offering multiple payment methods for merchants, at both a local and international level, are undeniable. By enabling seamless access to financial data and services across different banking organisations, open banking invites businesses to reap the rewards of cross-border payments, additional revenue streams and wider potential customer reach.”
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