Following on from the first chapter of emerchantpay’s research into Open Banking, the second instalment of the research delves into more detail about payment preferences.
Emerchantpay’s research has revealed the factors influencing how consumers choose to pay online. Top concerns over security (60%) and privacy (41%) were closely followed by considerations for speed (38%) and efficiency (34%).
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Security, privacy, speed and efficiency are all offered by Open Banking payments, sometimes beyond the capabilities offered by other payment methods. The demand for these aspects highlights the need for merchants to offer Open Banking as a payment method at the checkout.
The survey of 2,000 UK consumers was conducted by emerchantpay to gain deeper insights into the factors influencing consumers’ payment decisions. Alongside security, privacy, speed and efficiency, consumers said they prioritised the cost of the chosen payment method (29%), ownership of the data (18%) and account balance transparency (17%).
Jon Horddal, Chief Product Officer at emerchantpay, said: “The factors most important to consumers when choosing a payment method are all offered by Open Banking, so it’s of no surprise that Open Banking is steadily gaining popularity
“To maintain customer loyalty and reduce the risk of checkout abandonment, merchants must keep up with consumer demand when it comes to payments. These findings underscore the importance of integrating Open Banking as a method that goes beyond others to provide the highest level of security, data privacy, speed and efficiency.
“To unlock the greatest benefit from Open Banking Payments, however, merchants must help educate consumers about the advantages it offers, to encourage uptake. Despite 66% of consumers indicating they’ve never received communication from their banks regarding Open Banking, a staggering 88% expressed that transparency remains a critical factor in trusting banks and third-party providers. This highlights the need for educational efforts, which could be as simple as providing a brief, written explanation at the checkout.”
