Open Banking will likely be a more popular payment method that Buy Now Pay Later and Crypto in five years time.
That is according to new research from emerchantpay which reveals that cards will continue to be the main payment method of choice over the next five years, (22% of respondents) but this is followed closely by open banking with 19% of UK consumers showing a likelihood to increase their adoption in five years’ time.
According to the report, this would outpace other well-known payment methods such as Buy Now Pay Later (14%), manual bank transfers (13%) and crypto (7%).
Stefanie Renz-Schreiner, Senior Business Development Manager at emerchantpay, said: “The payments industry is currently experiencing some exciting changes, shaped by new payment innovations enabled by Open Banking. Its unique payment offering presents a multitude of benefits for businesses, from minimised chargebacks to improved payment experiences.
She added: “To remain agile and stay at the forefront of change, businesses can leverage this up-and-coming payment protocol to appeal to shifting consumer payment preferences and enhance business growth.”
The new report, Chapter one: Open Banking – Pushing the frontiers of payments, uncovers current consumer attitudes and preferences towards Open Banking based on a survey we commissioned for over 2,000 UK consumers.
It also highlights the benefits that merchants can reap from being early-adopters of Open Banking, from improved checkout experiences to minimised chargebacks.
Interestingly, it finds that despite the UK being the first country to adopt Open Banking, around in two UK consumers (52%) are unfamiliar with the term ‘Open Banking’ and unaware it is something they have already used to make purchases.
When taking a closer look at purchase intentions of UK consumers, 42% of respondents said they’re likely to use Open Banking for in-store payments, while 37% said they’re likely to make online payments this way. Additionally, online retail purchases, utility bill payments and airline tickets were found to be the most popular types of purchases for Open Banking payments.
