London, 18 May 2022: New research into online payments from Europe’s leading open banking platform, Tink, reveals sky-high expectations for seamless, secure transactions as payment choice increases
The survey of 2,000 UK consumers found that new payment innovations are being embraced — with 76% of consumers pleased with having more choices in how to pay. At the same time, tolerance for poor user experience is low, as nearly nine in ten (88%) claim they would abandon a purchase if faced with friction when paying. This suggests financial services providers may be missing the mark when it comes to delivering frictionless, yet secure payment options.
High expectations exposing flaws in user experiences
The surge in hassle-free payments has been welcomed by consumers, as nearly three quarters (70%) said new payment methods have simplified the payments process, while 82% said it’s becoming easier than ever to make payments quickly and simply.
However, the arrival of new payment methods has set the bar high when it comes to consumer expectations. Over three quarters (77%) of consumers now expect payments to be instantaneous (i.e. money paid and received immediately) while over half (58%) expect online payments to be completed with one click.
Expectations are higher still amongst younger generations. Nearly two in three (63%) 18-34 year olds expect to pay with one click, and the same number also expect to be able to pay for everything on their mobile phones.
But high expectations mean low tolerance for a poor payment experience, with younger generations the least forgiving of any kind of friction. For example, over a third (37%) of 18-34 year olds think there are too many hoops to jump through and too many details to enter when it comes to making payments online.
Frustrations and friction can lead to drop off
While choice is welcomed when making payments online, security is still a top worry amongst many consumers. In order of concern, Tink’s research found that consumers would abandon a payment if they are:
Worried that the payment method is not secure
Having to share my personal details with a third party
Being redirected to another site to make the payment
Having to confirm my identity on a separate device
Increased payments choice spurs consumer adoption of new methods
With payment expectations higher than ever, consumers and businesses alike are continuously looking for new ways to better the customer journey. While debit cards and direct debits remain popular for e-commerce transactions, there is evidence of new open-banking powered payment methods being used in other scenarios, particularly amongst the younger generations.
For example, over one in ten (12%) of those aged between 18-34 are already using ‘pay by bank’ transfers to pay for utilities, indicating an appetite from young people to explore new payment methods on the market.
Tom Pope, Head of Payments and Platforms at Tink, commented: “Our research shows that while increased payment choice and innovation is apparent in many areas, holes remain in many user experiences that give rise to friction and frustration.
“Consumers want to know that payments are secure and reliable - but increasingly they expect them to be embedded in a user journey to the extent that they almost become invisible. This is where open banking comes in.
“Open banking payment methods, often called ‘pay by bank’ transfers, can significantly reduce friction, improve reliability and enhance security, and can turn a previously negative payment experience into a competitive advantage for the merchant.As consumers embrace new payment methods and experiences become even more seamless, businesses who fail to adopt the latest payment technology may find they fall short of their customers’ expectations.”
Linda Winder, PR & Communications Director, firstname.lastname@example.org, +44 (0)7809 265941
About the research:
Online research was conducted by Opinium on behalf of Tink between 4-8 February 2022, amongst 2,000 nationally representative UK adults.
Tink is Europe’s leading open banking platform that enables banks, fintechs and startups to develop data-driven financial services. Through one API, Tink allows customers to access aggregated financial data, initiate payments, enrich transactions, verify account ownership and build personal finance management tools. Tink connects to more than 3,400 banks that reach over 250 million bank customers across Europe. Founded in 2012 in Stockholm, Tink became a wholly owned subsidiary of Visa in 2022. Tink’s 500 employees serve more than 300 banks and fintechs in 18 European markets, out of offices in 13 countries. We power the new world of finance. For more information, visit tink.com.