A recent study conducted by Swedish fintech company Brite Payments in collaboration with YouGov has revealed a significant shift in consumer payment behavior. The research identified Pay by Bank as one of the top three payment methods in the UK, Netherlands, Finland, Spain, and Germany.
The report, titled “Instant Economy Payment Insights,” highlights a growing demand for secure, convenient, and instant payment options among consumers. It also emphasizes the diverse payment behaviors across different markets, presenting a challenge for businesses operating on an international scale.
Lena Hackelöer, founder and CEO of Brite Payments, stated, “Immediacy and convenience are key in today’s instant economy, where consumers expect real-time interactions in all aspects of their digital lives. However, the evolution towards a true instant economy is hindered by the lack of a comprehensive ecosystem of digital payment technologies that can adapt to changing consumer needs.”
Based on a survey of over 8000 consumers across six key European markets in January 2024, the report revealed that creating an account and using an app were the most common hurdles faced by individuals making online payments. This indicates an opportunity for payment methods that are easy to use and require minimal effort from consumers. Despite a preference for convenience, security remains the most crucial factor for consumers when adopting a new payment method.
Speed also plays a significant role in consumers’ choice of payment method, with a substantial proportion of respondents valuing immediate transaction updates in their accounts. This requirement is particularly high in countries like the Netherlands and Spain. Additionally, consumers expect quick settlement of payments they receive, whether as refunds or payouts, with more than half of respondents considering it unreasonable to wait over an hour for a payment from a business.
Hackelöer highlighted the emergence of account-to-account payment solutions based on open banking, such as Pay by Bank, as a promising development that caters to both merchant needs and consumer preferences for secure and convenient payments. This new generation of payment methods is set to revolutionize the payments landscape by offering a seamless and secure transaction experience.
Overall, the research underscores the changing landscape of consumer payments and the need for innovative solutions that align with evolving consumer expectations and behaviors.
