emerchantpay survey flags UK attitudes towards Open Banking and opportunities for early adopting businesses

There is strong market potential for merchants who prioritise the adoption of Open Banking payments early in their payment strategies, according to research from emerchantpay.

Its survey of 2,103 UK consumers found that one in two people are unknowingly using Open Banking during checkout, with 51% of the UK population being unfamiliar with the term.  

Once consumers were informed about what this is, 45% of respondents that had not heard of the term claimed they had in fact used Open Banking for purchases. Of those who had heard of it, usage increased significantly to 58%. 

The outlook for Open Banking is also positive, with 19% of respondents saying that they will use it more frequently in five years’ time.

This compares to 14% saying the same for buy now pay later (BNPL) and 7% for crypto. 44% of Brits would use it for online retail, 36% for utility bills, 34% for hotels, 30% for airline tickets, and 25% for online subscriptions.  

Younger consumers demonstrated more awareness of Open Banking, with 25–34-year-olds most likely to have heard of it (45%). There is also an anticipated 32% surge in the use of Open Banking payments among 25–34-year-olds over the next five years.

However, more work needs to be done to educate consumers.  

Many aspects that consumers identified as important when making a purchase online align with Open Banking solutions, namely security (60%), privacy (41%) and speed (38%). 

Banks also have a part to play in increasing awareness and trust.

Two thirds of survey respondents stated that they had never received communications from their bank regarding Open Banking, while only 17% recalling that they had been notified about it (17% were either not sure or did not have a banking account).  

Jon Horddal, Chief Product Officer at emerchantpay, says: “The opportunities Open Banking offers to merchants are boundless, with it providing many features that consumers are currently seeking and demanding at the checkout. However, it's evident that there's a lack of awareness of Open Banking as a term.”  

“To create a win-win situation for consumers and merchants, there needs to be more education as to what it means and what its benefits are – from both the merchants themselves, but also from banks.”

“Many of the key features consumers want are available via Open Banking, but merchants need to be better equipped to demonstrate these benefits to consumers.” 

“To reap the rewards that Open Banking has to offer, merchants need to start including Open Banking payments at the checkout, alongside an explanation, to see the sort of consumer adoption we’ve experienced in the past with new payment methods, such as BNPL and eWallets.”