Businesses in the UK are increasingly looking for cost-effective and secure payment methods, as highlighted in a recent report by Yapily, an open banking infrastructure provider. The study reveals that merchants are dissatisfied with high transaction fees and the current chargeback model, which many view as unfair.
The report sheds light on the growing demand for alternatives to traditional card payments, with 98% of businesses valuing lower transaction fees and 41% wanting chargebacks to be eliminated entirely. Concerns over transaction fees, fraud risks, and data breaches are also prevalent among merchants, with 77%, 68%, and 54% expressing worries, respectively.
According to the survey conducted by YouGov for Yapily, which involved over 2,000 UK consumers and 250 merchants, two-fifths of businesses believe that the chargeback process favors consumers too much. Consumers, on the other hand, prioritize security and convenience, especially for low-value purchases. 49% prefer ease of use for purchases under ÂŁ20, while 44% prioritize security for purchases around ÂŁ100.
The report highlights that 58% of consumers would be willing to try new payment methods if they offered lower fraud risk. Although open banking is seen as a solution with lower fees and higher security, cards remain the preferred method due to familiarity. Yapily’s recommendations aim to drive open banking adoption and create a fairer financial system.
These recommendations include aligning the ecosystem on open banking’s value propositions, developing a consumer protection model without chargebacks, and introducing an open banking trustmark. Yapily’s founder and CEO, Stefano Vaccino, believes that open banking has the potential to enhance payment experiences beyond other methods.
Nicole Green, Yapily’s VP for product strategy, innovation, and policy, emphasizes that businesses are seeking lower costs and better security, which open banking offers. The challenge now lies in encouraging consumers to make the switch at the checkout by rolling out new features and creating a clear, trusted brand.
Yapily is an open banking infrastructure platform in Europe that connects customers to thousands of banks. The company has raised $69.4m in funding and continues to expand across Europe.
The original article “UK merchants seek alternatives to costly payments: Yapily report” was published by Electronic Payments International, a GlobalData owned brand. The information provided in this rewritten post is for general informational purposes only and does not constitute advice. Professional or specialist advice should be sought before taking any action based on the content.
