The way consumers pay is changing and Pay by Bank is emerging as an appealing choice, ranking as a top three payment method in the UK, Netherlands, Finland, Spain and Germany. A new report, based on research conducted by YouGov and Brite Payments, details how payment habits and preferences are evolving. It also shines a light on why Pay by Bank is gaining traction amongst a growing number of consumers.
The Instant Economy Payment Insights report, based on fieldwork conducted in January 2024 that surveyed more than 8000 consumers across six key European markets, examines emerging trends and payment preferences. It reveals a growing appetite for new payment methods that cater to consumer demand for secure, convenient, and instant payments. It highlights similarities and differences across the markets surveyed, which illustrate the diversity of payment behaviours that pose a challenge for businesses that are increasingly international in nature.
Nearly three-quarters (73 per cent) of all respondents are familiar with Pay by Bank (also known as Account-to-Account or A2A payments) as a payment method, rising to 90 percent in the UK and 97 per cent in the Netherlands. Pay by Bank is a top three payment method in the UK, Netherlands, Finland, Spain and Germany (based on usage on at least a monthly basis).
36 per cent of all respondents aged 18-29 already use Pay by Bank either daily or weekly, while 25 per cent do so across all age groups. Pay by Bank is three times more likely to be used on a daily or weekly basis than Buy Now Pay Later (25 per cent vs 7 per cent).
42 per cent of regular Pay by Bank users opt for the payment method because of speed with 59 per cent of respondents citing security as a primary factor determining their choice of payment method for online purchases – while 54 per cent cite ease of use.
Needing to create an account to complete a payment (22 per cent) and needing to use an app to make a payment (17 per cent) are the most frequently encountered issues with online payment. More than half of respondents (50.1 per cent) believe waiting more than an hour for a payout (payment from a business to a consumer) is unreasonable.
“Immediacy and convenience are at the core of today’s instant economy, with consumers now expecting real-time interactions across all digital touchpoints and in all facets of their lives,” said Lena Hackelöer, founder & CEO of Brite Payments. “However, the promise of a true instant economy remains unfulfilled, in part, because it requires an entire ecosystem of digital payment technologies that have struggled to keep up with changing consumer needs.”
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