Ancient payment methods draining billions from the UK's economy
In a significant move towards enhancing consumer trust and reducing potential losses, major retailers, financial institutions, and e-commerce companies in the UK have been adopting secure payment methods such as Pay by Bank, digital wallets, and credit cards. This trend, which has gained momentum in recent years, aims to increase customer confidence in payment security and reduce the loss of customer loyalty and repeat business.
According to a study conducted by Tink, a market-leading open banking and payments platform, 81% of consumers admit that the payment options at checkout influence their purchasing decision. This statistic underscores the importance of offering secure and recognised payment methods to customers.
The study also revealed that a lack of consumer trust in manual bank transfers could result in an annual loss of £6.15 billion for the UK economy. In fact, 41% of consumers surveyed would abandon a transaction if asked to make a manual bank transfer into a personal bank account. This highlights the potential impact of outdated payment methods on businesses, particularly Small and Medium Enterprises (SMEs).
Interestingly, despite these concerns, 87% of SMEs that accept manual bank transfers still rely on them as a regular or preferred method of payment. However, this could potentially cost SMEs £31.4 billion annually in lost customer loyalty, as 57% of consumers don't trust businesses that ask them to pay via manual bank transfer.
Ian Morrin, Head of Payments at Tink, emphasised the outdated nature of manual bank transfers, stating that they can hold the UK economy back. He further explained that secure, recognised payment methods like Pay by Bank, digital wallets, or card payments give customers confidence to complete purchases.
The shift towards secure payment options can help restore trust, reduce abandonment, and protect revenue, as 66% of consumers prefer businesses that use a recognised third-party payment provider. Tink, in collaboration with Visa A2A, is working to bring greater protections to Pay by Bank payments.
However, manual bank transfers still have their place, particularly for payments such as up-front deposits for building services or medical appointments. The UK Finance 2025 Fraud Report recorded £450 million in losses due to Authorised Push Payment (APP) fraud in 2024, underscoring the need for continued vigilance and investment in secure payment solutions.
In conclusion, the move towards secure payment options is a crucial step in boosting consumer trust, reducing potential losses, and driving growth in the UK economy. Businesses that prioritise secure and recognised payment methods are likely to reap the benefits of increased customer confidence and loyalty.
