At emerchantpay, we are always on the lookout for new payment innovations that make the payment process simpler for both businesses and consumers. And what could be easier than placing a payment through a mobile banking app that consumers already know and trust for their personal finances? In this article, we will explore the growing trend of mobile banking in the United Kingdom and how Mastercard’s Pay by Bank app has neatly packaged this interest into an easy-to-use payment method.
Mobile banking in the UK
Online banking has gained significant traction in the UK over the last decade, with the share of people using online banking in 2020 calculated at 76%. Ten years previously this figure sat at 42%, indicating the speed of adoption this technology has had in the UK. Learn more about payment preferences of Brits in our Global Payments Outlook 2023 report.
There’s also been a shift in the types of devices that consumers are using to conduct online banking. Throughout 2014 and much of 2015 more tablet owners were using online banking than smartphone users. However, this trend reversed at the start of 2016 when penetration levels started to drop off for tablet users and increase for smartphone users. By 2020, the online banking penetration level for smartphone users increased to 58% and for tablets, it decreased to 14%.
Businesses looking to tap into the trend for online banking should utilise payment methods that leverage this technology, such as Pay by Bank app. There should also be an emphasis on optimising your customer journey and payment flow for mobile devices as this is where a growing majority of consumers are active.
What is Pay by Bank app?
Mastercard’s Pay by Bank app is secure, easy-to-use and available through the banking apps of participating banks. No payment details or new passwords are required as they are already stored within the banking app, meaning that consumers will be less likely to abandon the sale due to the frustration of forgotten passwords.
To place a payment on a mobile device, consumers simply select Pay by Bank app at the checkout and are redirected to their banking app to log in. From here, they can check their real-time balance and confirm the payment. The customer journey looks slightly different on desktop as after clicking on the Pay by Bank app option at the checkout, consumers are given a unique six-digit code that they need to enter on the mobile app to verify the transaction.
How can Pay by Bank app benefit your business?
Pay by Bank app leverages a technology that many consumers are already using regularly and are familiar with—they don’t even need to download a separate app as it will be available directly through their participating bank’s app.
The seamless user journey reduces the risk of drop off and transactions being declined due to incorrect payment details being entered, ultimately increasing your conversion rate and revenue.
Additionally, as each transaction is authorised via the consumer’s banking app, fraud is greatly reduced due to bank-grade security provided. The chargeback process is also simplified as liability lies with the bank.
Consumers are attracted to the fact that they can choose which account the money will be coming out of and can check their balance before and after they make the payment, giving them more control and visibility over their spending.
As we can see from the statistics above, online banking is used and trusted by many British consumers. Offering a payment method that facilitates mobile payments via an app that many consumers already use regularly could open your business up to a whole new audience.
If you’d like to find out more about how emerchantpay can help you optimise for mobile commerce, contact a member of the team today.