Open Banking payments are being “readily embraced” by a “new generation of consumers”, according to Moneyhub.
Research by Moneyhub, conducted among 2,000 consumers, found that one in five Brits, or 21%, are now making regular payments via Open Banking.
Mark Munson, managing director of Moneyhub’s payment division, said the “Smart Payment revolution” that Open Banking enables will “shake up how we manage our regular bill payments”.
The research revealed that Open Banking payments are increasingly being used by the younger generations, with 29% of 16 to 24-year-olds and 26% of 25 to 34-year-olds making payments using Open Banking.
By comparison, only 13% of those aged over 55 use Open Banking payments, Moneyhub revealed.
Meanwhile, 44% of those who are full-time students are using Open Banking to make regular bill payments.
“Fifty years ago we would have seen payment by cheques or cash as the predominant tool to pay for bills, then direct debits and standing orders grew into popularity,” said Munson.
“Now, Open Banking is set to join the fold. Quicker, more efficient, offering greater flexibility and largely more cost-effective for both the merchant and customer, Open Banking payments are readily being embraced by a new generation of consumers.”
Moneyhub said it expects Open Banking’s variable recurring payments to challenge the dominance of direct debits, with 70% of Brits paying regular bills by direct debit.
“With new, innovative and more flexible propositions coming to market, Open Banking has demonstrated that early adopters of those services not only demand a greater choice in what they are buying, but how they are buying it,” Munson added.
“They are not wedded to payment solutions that are of their parents’, or grandparents’ generation.”
The Open Finance and Open Data platform won in the Best App and Best Open Finance Application categories, respectively.