A growing number of UK businesses are using Open Banking, with adoption reaching 47%. This marks a shift from the previous year, when a lack of understanding was a key barrier and 28% said they had not adopted Open Banking because they did not understand it. Now, trust in providers has become a central concern as more companies adopt the payment method.
According to a report by Payit by NatWest, 94% of surveyed businesses are likely to trial Open Banking as a payment method in the next 12 months. The survey included 1,401 respondents, including treasurers, Heads of Payments, and other senior financial decision-makers.
As businesses adopt Open Banking, they are focusing more on oversight and security. Some 93% said it is very or extremely important for Open Banking providers to be subject to the same regulatory requirements and oversight as banks. Security is also a major factor; around 34% said increased security and fraud prevention would make them more likely to adopt it, while 27% said they would be encouraged if a well-known financial institution offered Open Banking services.
The research also highlights widespread dissatisfaction with current payment systems. Nearly six in 10 businesses, or 59%, said their existing payment processes lead to late payments. More than half, 55%, said those processes are not efficiently integrated with their infrastructure. The same proportion also said customer payments are too slow, compared with 49% in the earlier study who said payment processing was not fast enough.
These delays have significant knock-on effects. Among businesses facing late-payment issues, 23% said it increases operational costs, 22% said it affects customer satisfaction and retention, and 20% said it limits growth potential. This indicates that payment friction is impacting cash flow management and broader commercial performance.
James Hodgson, Chief Executive Officer of Payit by NatWest, commented: “Businesses are increasingly open to new ways of making and receiving payments, but the experience needs to be faster, simpler and more secure. Just as importantly, businesses want confidence that the providers they work with are held to the right standards. As Open Banking becomes more established, building trust will be critical to its continued adoption. Providers have an opportunity to work closely with banks and regulators, demonstrate robust security and give businesses confidence that innovation is being delivered alongside the right protections.”
The research was conducted by Censuswide across two waves and covered sectors including professional services, financial services, education, and transport. Open Banking allows third-party providers to access bank account information through APIs with a customer’s consent. The findings suggest that for businesses considering wider use, confidence in the provider is as important as speed and simplicity.
