UK Consumer Awareness of ‘Pay by Bank’ Plummets Despite Open Banking Boom

Why It Matters

The terminology gap threatens to stall open‑banking adoption, forcing consumers back to slower, legacy payment methods and limiting merchants’ efficiency gains.

Key Takeaways

• Open banking payments grew 53% YoY in 2025
• “Pay by Bank” awareness dropped to 38% in 2026
• Multiple terms confuse consumers, hindering adoption
• Legacy BACS recognized by 77% of shoppers
• Standardized naming crucial for trust and uptake

Pulse Analysis

The UK’s open‑banking ecosystem is accelerating at an unprecedented pace. According to Yaspa’s 2026 Index, transaction volume built on open‑banking APIs surged 53 percent year‑on‑year during 2025, signalling that merchants and banks are increasingly leveraging account‑to‑account transfers to cut settlement times and fees. Yet the same data reveal a paradox: consumer familiarity with the umbrella term “Pay by Bank” has slipped to just 38 percent, down from 55 percent a year earlier. This disconnect suggests that while the technology is scaling behind the scenes, the public narrative has not kept up.

Fragmented terminology is the primary culprit behind the awareness gap. Retailers and payment providers rotate between labels such as “instant bank transfer,” “account‑to‑account,” and “open banking,” leaving shoppers unsure which option they are selecting at checkout. The survey shows that legacy terms like BACS still enjoy 77 percent recognition, underscoring the power of consistent branding. When faced with unfamiliar phrasing, consumers default to familiar, slower methods, eroding the efficiency gains that open‑banking promises. Industry bodies therefore face pressure to converge on a single, consumer‑friendly name that can translate speed and security into trust.

Fintech innovators are already positioning themselves to bridge the language divide. Yaspa’s Intelligent Payments platform combines artificial intelligence with real‑time open‑banking data to deliver frictionless affordability checks and proactive fraud detection, all while masking the underlying complexity from the end‑user. By presenting a seamless experience under a clear, standardized label, such solutions can accelerate mass‑market adoption and unlock new revenue streams for merchants. As regulators and trade associations contemplate a unified nomenclature, the next wave of open‑banking growth will likely hinge less on technology upgrades and more on clear, consistent communication.