"What's next for open banking?" This question emerges each year, and I've even noticed this wording used as a discussion point on the Merchant Payments Ecosystem agenda next week. When a consumer uses a credit or debit card, the process is easy, the user is protected, and the fees sit with the merchant. This is great for the consumer, but less so for merchants. Open Banking is currently the opposite – the user journey takes longer and there aren’t consumer protections in place, but merchants benefit hugely from a cost perspective. Until we’ve reached a place where consumers benefit just as much as merchants, I think widespread adoption for consumer payments will be a challenge. What do you think? Keen to hear my networks' thoughts. I look forward to attending the discussion at MPE next week, keen to hear the thoughts of David Parker, Dr. Lea Maria Siering, Dr Michael Salmony, Lena Hackelöer and Katharina Luschnik. If you are attending this session, drop me a message and we can connect. Cashflows #MPE #Fintech #Payments
Holly Coventry
5mo
We should catch up 😜
Ian Penney
5mo
Philip Harding In my experience, consumers will always ask WIIFM before making a change and if there is no compelling reason. Instead they will stick with the well trodden path and wait for something better to come along.
Matt D.
5mo
In my opinion, as a consumer, I go where I have protection and that's cards, especially Credit cards for larger purchases. Open banking probably does have a use case, but with cards leading the charge for well over half a century its difficult to change consumer behaviour. I agree with you, merchants need to offer some sort of incentive like a discount price for using Open banking to drive adoption for the trade off for losing consumer protection IMHO.
Mark Johnson
5mo
For me it's all about customer choice but agree that adoption is slow due to the challenges you outline. We're aware of many sector's including Cash and Carry, Automotive etc pushing customers towards bank transfer's to avoid high card costs and slow access to funds! Open Banking definitely has a place alongside other payment methods...
Richard Hartley
5mo
Eventually the market finds a way. Currently I think there are no solutions getting the balance right (historic, current and future needs in mind) but eventually natural selection will win out. I definitely feel solutions are either far too buyer or merchant focussed, not many meet in the middle but that will change.
PayByBank has a place at checkout. You just need to go after merchants with specific pain points. It also does carry the same level of protection that a consumer would get on a debit card transaction. Even more protection once there is an insurance policy backing it!
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5moHi Philip Harding long time no see! How could this happen, any specific usecases in mind? "Until we’ve reached a place where consumers benefit just as much as merchants,"