Almost half (48 per cent) of consumers have some level of confusion about Open Banking, while just 14 per cent of consumers claim to ‘completely understand’ it, according to new research.

The studies of 1,002 UK consumers and 500 business leaders conducted by ECOMMPAY and Censuswide also found that one in ten business leaders still don’t understand how Open Banking could help their business.

Open Banking uses APIs to enable secure and consented data sharing between banks and third parties.

The results of the surveys, which have been compiled within a whitepaper, show a generational divide when it comes to awareness of Open Banking. Approximately a quarter (24 per cent) of 25-34 year olds stated that they completely understand Open Banking, compared to only 7 per cent of over-55s.

Four in ten (40 per cent) of over 55s said they had no idea what Open Banking is.

In addition, just over a third (36 per cent) of business leaders surveyed said that their company had adopted Open Banking before 2021. An additional 32 per cent said that while they haven’t implemented Open Banking thus far, they would like to in the coming year.

The report also provides insights regarding the changing preferences of consumers in relation to checkout experiences.

Almost three quarters (71 per cent) of consumers would be ‘very’ or ‘somewhat’ likely to abandon their purchase if their chosen checkout method was not available.

One in five consumers also said that the payment process is ‘very’ important in the brand experience, with a further 50 per cent stating that it’s somewhat important.

Commenting on the report’s findings, Paul Marcantonio - executive director UK & Western Europe at ECOMMPAY said: “Technological innovation and social change is taking place at breakneck speed, and it can be hard for businesses and consumers to keep up.

“The lack of understanding and slow implementation of Open Banking products shows the need for further education, and that’s what we’ve provided in this whitepaper. This will ensure that businesses and consumers of all types will be able to take full advantage of Open Banking’s benefits.”

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