EML Commissioned Research Finds 1 In 4 U.K. Merchants Predict Open Banking Payments Will Become The Most Popular Payment Method In The Next 5 Years
June 07 2022 - 3:00AM
Business Wire
Survey respondents also agreed that open banking presents the
greatest opportunities of any payment method in the coming 3
years.
Nuapay (EML Payments Limited’s (ASX: EML) Open Banking
business), has released new data revealing that 1 in 4 (25%)
merchants predict open banking will become the most popular payment
method amongst customers in the next 5 years.
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the full release here:
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Nuapay reveals that 1 in 4 merchants
predict open banking will become the most popular payment method
amongst customers in the next 5 years. (Graphic: Business Wire)
The survey of payments decision makers highlights the growing
confidence in open banking as a payment method and marks a
significant step forward towards general adoption of the
technology.
When quizzed about which payment method would present the most
opportunities for their organisation over the next 3 years,
respondents said open banking was the top choice (36%), followed by
digital wallets (35%) and Buy Now Pay Later (BNPL) (26%).
Additional findings
When asked which payment methods had seen an increase in uptake
over the last 2 years;
- 39% said digital wallets.
- 35% called out open banking payments.
- 28% named BNPL.
- 28% responded with credit or debit cards.
- 25% mentioned subscriptions or direct debits.
- 24% noted cryptocurrency.
''The survey results are encouraging, demonstrating a step
change in merchant awareness and appreciation of open banking
payments. The increase in uptake observed by respondents and
predictions for the technology to become the most popular payment
method in the next 5 years point to a growing understanding of the
value of open banking,'' commented Brian Hanrahan, CEO, EML's
Nuapay Business Division.
43% of respondents said they have yet to realise the full
benefits of open banking within their organisation, with 26% saying
that although they had realised benefits, there were still
opportunities to explore. Almost 1 in 5 (19%) said they had only
achieved a small percentage of what is possible.
Respondents thought that the most significant benefits of open
banking for organisations were more straightforward reconciliation
(33%), improved payer user experience (31%), consolidated reporting
(31%) and improved access to loans (30%). For consumers, greater
control (41%) was the number one benefit, followed by improved
customer experience/convenience (37%) and the reduction in fraud
risk (34%).
When questioned about how their customers respond to new
payments technology, respondents were almost evenly split, with 49%
believing there was interest from the start and 48% adding that
their customers were distrustful at first, requiring extensive
education before beginning to use new methods. Gaming and gambling
companies had the most distrustful customers (63%), with the
reverse true for healthcare and retail, catering and leisure
companies, of which 52% said that there was heightened interest
from the beginning.
''With the technology's popularity rising quickly amongst
consumers, it's clear open banking is now an essential option at
the checkout. It’s exciting that merchants feel their customers are
open to new payment methods. As momentum grows, leading payments
providers have the chance to help their clients make the most of
the opportunities that the technology offers,” added Brian
Hanrahan.
About EML Payments and Nuapay
Wherever money is in motion, EML helps businesses create awesome
payments experiences for their customers. Our technology powers the
payments process, moving money quickly, conveniently and securely
while our programme management expertise creates superior
configurable, feature-rich payments solutions.
Nuapay is EML's market-leading Open Banking business. Direct
Debit, Credit Transfers and Instant Payment products are also
available through one single 'bank-grade' platform, easily
accessible through industry-leading APIs. Businesses and their
customers benefit from the immediacy of Open Banking and
account-2-account payments and can save time, money and resources
at every turn. This is payments as it should be.
For more on EML visit the website here or check out other recent
media in the Newsroom here
For more on Nuapay visit the website here
Research Methodology
The survey was conducted by Censuswide amongst a sample of 750
payments decision-makers (aged 18+) with the job titles of CFO,
Financial Director, Head of Payments, Head of Product, Head of
Innovation, Head of Customer Experience, Marketing Director, Head
of Marketing, with an equal split in the following industries:
Financial Services, Gaming and Gambling, Travel and Airlines,
Education, Utilities, Healthcare, Retail, Catering and Leisure,
Telecoms, Software/Marketplace Provider. The survey was conducted
from a random sample of adults in the U.K. Fieldwork was carried
out between May 11th to 20th, 2022. Censuswide abides by and
employs members of the Market Research Society, based on the
ICC/ESOMAR international code on market, opinion, social research
and data analytics.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220607005165/en/
For further information: Sarah Bowles, Group Chief
Digital Officer EML Payments Limited (ASX: EML)
sbowles@emlpayments.com +61 439 730 968 Marie O’Riordan, Global
Director of Public Relations EML Payments Limited (ASX:
EML) marie.oriordan@emlpayments.com / pr@emlpayments.com +44
207 183 5856 / +353 46 94 2010 9
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