Payit, the open banking payments solution created by banking group NatWest, has published new findings revealing that almost half (42 per cent) of British businesses are keen to integrate open banking into their operations citing increased security and fraud prevention as potential benefits.
The research, conducted by Censuswide sampling 801 UK respondents aged over 25 (treasurers, heads of payments, heads of strategy and chief investment officer etc.), found that 22 per cent of businesses spend more than six hours per month managing and storing sensitive customer information, such as card details. With open banking solutions, they could use this time to build and grow their business.
Despite a range of advantages, many businesses remain hesitant to adopt open banking, as a quarter (28 per cent) of businesses claim to have not yet implemented it due to a lack of understanding. This comes at a time when two-thirds (67 per cent) of businesses have experienced issues when processing payments that disrupt their business operations. Therefore, now could be an ideal time for businesses to consider an alternative, such as open banking.
Furthermore, 44 per cent of businesses report inefficiency that often leads to cash flow issues, preventing timely payments to suppliers and staff.
Consumer impact
These issues are not felt exclusively by businesses – but can also impact the end consumer. More than half (56 per cent) say slow refund processes have worsened customer experience or cost them sales, which is coupled with an inefficient or overly complicated checkout journey for customers (51 per cent).
As card payments dominate the online landscape, businesses may be missing out on the benefits that open banking offers. With faster transaction times, streamlined customer payment experiences, and improved security—eliminating the need to store sensitive card data—open banking presents a viable alternative.
Consumer trust is essential for new technology adoption. Notably, 90 per cent of businesses express confidence in established banks to provide secure open banking solutions compared to three quarters (76 per cent) who trust fintech alternatives.
Addressing any current misunderstandings surrounding open banking and collaborating with businesses to understand their unique challenges will enable businesses to foster greater efficiency, unlocking the potential to scale and capitalise on growth opportunities.
Optimising cash flow and making informed decisions
Lee McNabb, head of group payments strategy at NatWest, said: “Businesses are increasingly recognising the need for more efficient and secure payment methods such as open banking. Payit by NatWest delivers solutions that not only caters to operational efficiency but enhances user experience and empowers businesses to offer their customers a wider choice of payment options promoting user satisfaction.
“Payit not only allows businesses to optimise cash flow and make informed decisions using real-time insights and transaction tracking, but it also delivers seamless, secure, and rewarding experience customers.”
Alex Marsh, chair of Salad, and non-executive director of the Centre for Finance, Innovation and Technology (CFIT), adds: “Salad’s rollout of Payit is a brilliant example of open banking innovation transforming financial services for consumers – enabling simple, secure bank transfers, no more 16-digit card numbers. By removing friction and giving customers the flexibility and security they’ve asked for, we’re delivering fairer, faster, more empowering ways to manage their money.
“Beyond Salad, it’s exciting to see open banking’s potential scale across the consumer journey – redefining payments and responsible lending, boosting inclusion, and unlocking real-life benefits for businesses and individuals.”
