UK's 'Pay by Bank' awareness plummets as confusing payment terms slow adoption
Familiarity with 'Pay by Bank' has dropped sharply in the UK, falling from 55% in 2025 to just 38% in 2026. The confusion around payment terms is pushing consumers back to older, slower methods they know better. Meanwhile, open banking-powered transactions have surged across Europe, leaving the UK behind in adopting a unified approach.
The decline in recognition comes as consumers struggle with inconsistent language at checkout. Terms like 'instant bank transfer', 'account-to-account', and 'openai' are often used interchangeably, creating confusion. This unfamiliarity leads many to stick with traditional options such as BACS, which remain widely recognised after years of use.
Security and convenience still drive consumer choices in online payments. But unclear terminology is slowing down the shift to faster, more efficient methods. Yaspa's Intelligent Payments platform aims to address this by using AI and real-time open banking data to give merchants clearer insights into payment behaviour.
Elsewhere in Europe, open banking payments have expanded rapidly. Wero, a leading provider, rolled out in Germany in November 2025, followed by France and Belgium in January 2026. The Netherlands is set to join mid-2026, bringing the total to 46 million users across 16 countries. The UK, however, continues to rely on its established Faster Payments system without adopting similar pan-European solutions.
Yaspa CEO James Neville has stressed the need for a single, universal term to describe open banking payments. Without it, wider adoption could remain slow. UK growth in this sector did reach 53% year-on-year through 2025, but the lack of standardised language risks holding back further progress.
The drop in awareness of 'Pay by Bank' highlights the challenges of inconsistent payment terminology. While Europe pushes ahead with unified open banking solutions, the UK's reliance on older systems and unclear labelling may limit future growth. Merchants and providers will need clearer communication to encourage wider use of faster payment methods.
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