Data from Open Banking firm Nuapay reveals that consumers are “frustrated” with the user experience when making card payments online.

In a study of over 2,000 UK consumers commissioned by Nuapay, it was found that 52 per cent of payers choose their payment method based on convenience and ease-of-use, yet 30 per cent reported their biggest concern about shopping online is the time it takes to input card details and process payments.

Perhaps most worrying is that a quarter of consumers (25 per cent) said they had lost out on purchasing goods or services - such as concert tickets and limited-edition clothing ranges - online or on their mobile because inputting their card details took too long.

This rises to 47 per cent of 16-24-year olds and 44 per cent of 25-34-year olds - the two key demographics for many online retailers.

The research found that 54 per cent of UK consumers would be willing to use Open Banking as an alternative way to pay. This rises to 64 per cent of consumers who use mobile banking and who can potentially benefit the most.

Unsurprisingly, the younger generations are leading the demand for Open Banking solutions, with 75 per cent of consumers under 34 willing to use Open Banking to make a payment.

Looking at where consumers would be willing to use Open Banking payments, they said they were are more willing to use them for everyday retail, such as groceries (42 per cent), than big-ticket travel items like flights and package holidays (39 per cent).

When using Open Banking payments, rather than inputting card details consumers simply authenticate the payment on their mobile device. By speeding up the process, the user experience is improved and customers are much less likely to lose out on purchases, as well as reducing the likelihood of abandoned online shopping carts.

A key blocker to the technology becoming mainstream appears to be a lack of understanding. The research found that 37 per cent of consumers would be willing to make an Open Banking payment if they had increased understanding of the technology, its security features, or how the payment experience is more convenient than using cards.

Nick Raper, head Nuapay UK, said: “It’s clear that Open Banking technology needs a leading consumer brand to kick start the revolution that has been coming since its inception - a retailer who can do for Open Banking what Transport for London did for contactless.”

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