Global Payments launches Open Banking payment solution

A recent consumer survey commissioned by Global Payments Inc. (NYSE: GPN) in partnership with YouGov found that consumer habits and expectations for payment experiences are changing. Consumers want choice at checkout while looking for ways to better control their finances. Nearly one in five consumers (19%) say they are now more likely to pay for items in full, which can help them manage their cash flow and provide a real-time picture of their financial situation.

Today, Global Payments is announcing a new payment method offering, Bank Payment, which enables merchants to offer consumers more choice in how they pay. This payment method takes advantage of the direct and secure access to bank accounts made possible by Open Banking and lays the foundation for other innovations in payments. Now businesses can accept payments for products and services directly from a bank account, providing an additional payment alternative for merchants and consumers that combines speed and flexibility.

Choice, speed and incentive are key to building customer loyalty

The survey found that one in four consumers (26%) abandoned an online purchase in the last six months because the merchant did not offer the desired payment method, and 18% went overdrawn or had a transaction declined due to slow payment processing. For merchants striving to attract and retain customers, offering more payment options offers an opportunity to cultivate brand loyalty, while reducing abandoned carts.

More than a third of consumers (34%) said they would be willing to switch to an alternative payment option to their preferred one if it offered an additional benefit. Enticing customers to use a particular payment method can be a loyalty win-win for merchants and consumers alike.

As consumers increasingly seek fast, secure payments and the choice to pay in full to manage their finances, bank payment offers a new opportunity for merchants to add choice to their checkouts and drive sales.

Younger generations are leading the charge in adopting new payment methods

The Global Payments survey also found that younger generations are more likely than older generations to use digital wallets, suggesting wider acceptance of emerging payment methods as digital natives become a greater percentage of consumers. For example, Gen Z (18-24) are more than three times more likely than consumers 55+ to prefer digital wallets (13% 18-24 vs. 4% 55+) and wire transfers direct banking (7% 18-24 year olds). 24s versus 1% 55+).

Willingness to switch payment methods to receive new benefits was also significantly higher among Gen Z than any other age group (45% of 18-24 year olds versus 35% of 45-54 year olds and 24% of 55 and over). It’s an attitude that will fuel competition between providers to build on Open Banking, as young consumers won’t hesitate to switch to get the best deal and the fastest experience.

“Wide adoption of new payment options typically hits a tipping point when consumers demand innovation or merchants drive adoption – or both. I think we’re at an inflection point with Open Banking, where we are seeing consumer and merchant interest in taking advantage of new payment innovations. With Bank Payment, merchants have the ability to meet all of their customers’ needs.” explained Nick Corrigan, President Europe, Global Payments.

About Matthew R. Dailey

Check Also

The Standard bank of South Africa Limited – Declaration of first interim payment for the holder of SBRN07 – SENS

The Standard bank of South Africa Limited – Declaration of first interim payment for holder …