A survey suggests open banking will surpass buy now, pay later (BNPL) and crypto payments in popularity by 2029. According to emerchantpay research, one in five plan to use it more frequently in the next five years, compared to 14 per cent for BNPL and seven per cent for crypto.
Nearly half of UK consumers unknowingly use open banking during checkout, the survey reveals, despite 51 per cent being unfamiliar with the term.
Once informed about open banking, 45 per cent of those previously unaware respondents realised they had used it, indicating widespread use despite low recognition. Among those familiar, usage increased to 58 per cent, showing understanding boosts adoption.
Merchants can benefit as 44 per cent would use it for online retail, 36 per cent for utility bills, 34 per cent for hotels, 30 per cent for airline tickets and 25 per cent for subscriptions.
Younger consumers (aged 25 to 34) are the most aware (45 per cent) and will drive a 32 per cent increase in usage, highlighting the need for more consumer education.
‘Boundless’ opportunities
According to Jon Horddal, chief product officer at emerchantpay, the opportunities open banking offers to merchants are boundless, with it providing many features that consumers are currently seeking and demanding at the checkout.
“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 e-wallets.”
emerchantpay recently partnered with TrueLayer, the European open banking payments network. Through the alliance, emerchantpay will offer open banking payments as an online checkout option for merchants across the UK and Europe.
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