New research from Swedish fintech Brite Payments and YouGov has found that the way consumers pay is changing, with Pay by Bank ranking a top three payment method in the UK, Netherlands, Finland, Spain and Germany.
The inaugural report, Instant Economy Payment Insights, found 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.
“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, 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.”
Consumers choice
Based on fieldwork conducted in January 2024 that surveyed more than 8000 consumers across six key European markets, the report found needing to create an account (22 per cent) and needing to use an app (17 per cent) were the most frequently encountered issues when making online payments.
The prevalence of these issues indicates an opportunity for easy-to-use payment methods that only require consumers’ top-of-mind information. However, despite a clear desire for convenience, security ranks as the most important factor when considering a new payment method.
Speed also emerges as a key consideration in consumers’ choice of payment method. More than a third of respondents placed high importance on immediately seeing transactions reflected on their accounts, rising to nearly half for the Netherlands (44 per cent) and Spain (46 per cent).
Consumers also expect rapid settlement of payments they receive, whether in the form of refunds or payouts. Over half (50.1 per cent) agreeing that it is unreasonable to wait for more than an hour to receive a payment from a business.
“Account-to-account payment methods are not entirely new – in fact, they are well established in many European markets. What is noteworthy is that a new generation of Pay by Bank or A2A solutions based on open banking is emerging, which not only address merchant pain points but also clearly converge with consumer demands for more convenient and secure payments,” concluded Hackelöer.
Polly Jean Harrison
