Ecommpay, payment service provider and card acquirer, has released new data as part of its whitepaper entitled, ‘Beyond the pandemic: The outlook for Open Banking’.
Key findings include that almost half (48%) of consumers surveyed have some level of confusion about Open Banking and its uses, and 10% business leaders don’t understand how Open Banking could help their business.
While the survey found that 14% of UK consumer ‘completely understand’ open banking, Ecommpay states that the findings at large show a lack of understanding of Open Banking.
As we approach the latest UK Open Banking deadline on 14th September, Ecommpay highlights that the UK must improve its Open Banking knowledge if it wishes to maintain its position as a global leader in the sector.
The report states that other nations such as the US and Canada are enacting their own Open Banking programs, and this data shines a light on consumer perceptions of Open Banking and the opportunity for British businesses to use this payments technology to grow.
The surveys also found some age disparities. 24% of 25-to-34-year-olds stated that they completely understand Open Banking, compared with 7% of over-55s. What’s more, 40% of over-55s said they had no idea what Open Banking is.
Only 36% of business leaders surveyed said their company had adopted Open Banking before 2021. Additionally, 32% said that while they have not yet implemented Open Banking, they would like to during 2021.
The whitepaper includes the results of two surveys, one of 1,002 UK consumers, and the other of 500 business leaders in the UK. Surveys were conducted in collaboration with Censuswide, and the research was completed in March 2021.
Paul Marcantonio, executive director UK and Western Europe at ECOMMPAY remarked: “Technological innovation and social change is taking place at breakneck speed, and it can be hard for businesses and consumers to keep up. The lack of understanding and slow implementation of Open Banking products shows the need for further education, and that’s what we’ve provided in this whitepaper. This will ensure that businesses and consumers of all types will be able to take full advantage of Open Banking’s benefits.”
The whitepaper also provided some insights regarding changing preferences of customers in relation to checkout experiences. Around 71% of consumers would be ‘very’ or ‘somewhat’ likely to abandon their purchase if their chose checkout method was not available. Additionally, one in five consumers said that the payment process is ‘very’ important in the brand experience, and a further 50% stating that it’s somewhat important.