LONDON–(BUSINESS WIRE)–Nuapay (open banking business of EML Payments Limited (ASX:EML))released new data revealing that 1 in 4 merchants (25%) predict that open banking will become the most popular payment method among customers over the next 5 years.
The survey of payments decision makers highlights growing confidence in open banking as a payment method and marks a significant step towards mainstream adoption of the technology.
When asked which payment method would present the most opportunity for their organization 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%).
When asked which payment methods have seen an increase in usage over the past 2 years;
39% said digital wallets.
35% called open banking payments.
28% named BNPL.
28% responded with credit or debit cards.
25% mention subscriptions or direct debits.
24% rated the cryptocurrency.
“The results of the survey are encouraging, demonstrating a sea change in merchant awareness and appreciation of open banking payments. The increase in adoption seen by respondents and predictions that the technology will become the most popular form of payment over the next 5 years indicate a growing understanding of the value of open banking,” commented Brian Hanrahan, CEO of EML’s Nuapay business division.
43% of respondents said they have yet to realize the full benefits of open banking within their organization, with 26% saying that while they have realized benefits, there are still opportunities to explore. Almost 1 in 5 (19%) said they had achieved only a small percentage of what is possible.
Respondents believed that the most important benefits of open banking for organizations were simpler reconciliation (33%), better payer user experience (31%), consolidated reporting (31%), and better access to loans (30%). For consumers, better control (41%) was the top benefit, followed by improved customer experience/convenience (37%) and reduced risk of fraud (34%).
Asked about how their customers react to new payment technologies, respondents were almost evenly split, with 49% believing there was interest from the start and 48% adding that their customers were wary at first, requiring extensive training. before you start using new methods. Gaming and gambling businesses had the most distrustful customers (63%), with the reverse being true for healthcare and retail, restaurant and leisure businesses, of which 52% said that there was heightened interest early on.
“With the growing popularity of the technology among consumers, it is clear that open banking is now an essential option at checkout. It’s exciting that merchants feel their customers are open to new payment methods. As the momentum grows, leading payment providers have the opportunity to help their customers make the most of the opportunities offered by technology,” added Brian Hanrahan.
About EML Payments and Nuapay
Wherever money moves, EML helps businesses create exceptional payment experiences for their customers. Our technology powers the payment process, moving money quickly, easily and securely, while our program management expertise creates configurable, feature-rich payment solutions.
Nuapay is Open Banking’s leading business in the EML market. Direct debit, wire transfer and instant payment products are also available through a single “bank-grade” platform, easily accessible through state-of-the-art APIs. Businesses and their customers benefit from the immediacy of Open Banking and account-to-account payments and can save time, money and resources at every turn. These are payments as they should be.
To learn more about Nuapay, visit the website here
The survey was conducted by Censuswide among a sample of 750 payments decision makers (aged 18+) with the job titles of CFO, CFO, Payments Manager, Product Manager, Innovation, Customer Experience Manager, Marketing Director, Head of Marketing, split equally across the following industries: Financial Services, Gaming & Betting, Travel & Airlines, Education, Utilities, Healthcare, Retail, catering and leisure, telecommunications, software provider/marketplace. The survey was conducted among a random sample of adults in the UK. Fieldwork was conducted between May 11 and May 20, 2022. Censuswide respects and employs members of the Market Research Society, based on the ICC/ESOMAR International Code of Market, Opinion, Social Research and Analysis of data.