- Consumers do not trust companies that require banking transfers
- British SMEs lost 6.15 billion pounds Sterling directly and 31.4 billion pounds indirectly, in 2024
- Bank payment is secure, fast and helps prevent fraud
The Open Banking Platform Tink said that SMEs in the United Kingdom alone lost 6.15 billion pounds in direct sales last year because consumers do not trust manual bank transfers, with 31.4 billion additional sterling pounds of indirect loss associated with customers who do not return.
The news intervenes as a fraud authorized on the payment of the thrust (application) – where customers are led to send money from their account to the account of a fraudster – represented 450 million pounds sterling of losses throughout 2024.
Two in five consumers (41%) now admit to moving away when they are invited to make a manual banking transfer, with almost three out of five (57%) which do not trust companies that require payments per transfer.
Consumers are (rightly) concerned about banking transfers
The majority (86%) note feeling uncomfortable if the account name does not correspond to the company, with a similar number (84%) also concerned if the companies do not offer several payment options.
“Manual bank transfers are often no longer suitable for use and retain the British economy,” said Ian Morrin, payments responsible for Tink.
Despite a general concern on consumers, the majority (87%) of SMEs who accept manual banking transfers are still regularly based on them, or as a preferred payment method, highlighting a separate need for modernization.
It is even more worrying since SMEs represent 99.9% of the commercial population of the United Kingdom, causing billions of losses.
“The secure and recognized payment methods, be it remuneration by the bank, digital portfolios or card payments, give customers the confidence necessary to make purchases while helping companies to improve conversion, to reduce the risk of fraud and to meet increasing expectations concerning the payment experience,” added Morrin.
Pay by Bank, activated by Open Banking, opens the banks and services to communicate with each other, so instead of entering the details of the card, customers can click on a link to send a payment directly from their account, approving it in the application.
TINK describes remuneration by the bank as profitable for companies, but it also helps reduce fraud and losses. With payments that are also settled more quickly than inherited methods, it can speed up processes on electronic commercial platforms and lead to higher levels of satisfaction.
