Faster Payments Will Drive Consumers to Switch Bank Accounts
Monday, July 20, 2015
LONDON: 20 July, 2015 – The appetite for faster, easier and more convenient payment methods among UK consumers is rising rapidly, according to a new YouGov and ACI Worldwide (NASDAQ: ACIW) online survey of more than 2,000 UK adults.
-45 percent of UK current account holders say the offer of faster electronic payments would encourage them to switch their bank account provider, the research shows.
-UK consumers see fast and convenient payment methods as a major differentiator when selecting a bank account, according to new survey by YouGov and ACI Worldwide
-Millennials are fastest adopters of new banking services such as mobile banking, contactless and third-party payment providers
-Payment delays amongst biggest irritations for UK consumers, just behind ATM withdrawal fees and credit and debit card fees
The findings reveal that UK consumers have high expectations when it comes to speed of electronic transfers.
- 41 percent of respondents say they would expect electronic payments to reach the recipient’s account immediately or in less than 5 minutes.
- 65 percent of UK bank account holders would like to see immediate payments for utility bills, 60 percent for credit card bills, and 66 percent for payments to family and friends.
- 47 percent agree that a benefit of faster electronic payments is the opportunity to carry less cash.
Payment delays are also one of the biggest irritations for consumers, according to 33 percent of respondents with a bank account. The only bigger irritations are fees for cash withdrawals from ATMs (55%) and fees for debit and credit card transactions (52%).
As might be expected, the younger generation of account holders (18 to 34) are the fastest adopters of newer banking services like mobile banking and contactless payments.
- 54 percent of 25-34 year olds use mobile banking at least once a month; 44 percent in that age group use contactless payments in an average month. They also find it more appealing to switch current accounts for the offer of faster electronic payments (61% of 25-34 year olds may make that switch compared to only 35% of 55 and over).
Barry Kislingbury, Lead Solutions Consultant at ACI Worldwide, comments:
“Our research shows that today’s consumers want fast and easy payment methods. Speed is very important to them as is convenience. Many big retail banks are missing a trick. Today’s consumers, especially young ones, are financially and digitally savvy. Banks have a real opportunity to stand out by offering faster payments and other innovations that today’s consumers covet.”
The UK is one of the leading countries when it comes to faster payments adoption. Currently, 10 banks are participating in the UK Faster Payment scheme with efforts by the new UK Payment Systems regulator underway to open up the system to more participants including challenger banks and other financial services providers. Under the Faster Payments scheme, a direct payment between two current account holders takes just 15 seconds to transfer.
However, consumers have very different views as to how fast they can expect payments to be transferred into a recipient’s account.
- 23 percent of respondents say they would expect an electronic transfer to reach recipients immediately while another 23 percent say up to three hours.
- 8 percent of respondents would expect electronic payments to take between two to three days.
Kislingbury adds, “This clearly shows there is a need for greater transparency regarding the service levels being offered by banks, so that consumers can make informed decisions and select the right current accounts and banking providers to meet their needs. Banks that offer electronic payments in seconds or minutes would seem to have an important differentiator that they are not fully exploiting today.”
ACI’s UP Framework for Immediate Payments provides an infrastructure that allows agility to respond more quickly to new business initiatives and customer demands. It offers the ability to renovate payments applications while still using the best of an organization's current infrastructure.
Note to Editors:
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,074 adults. The survey was carried out online between 12th-15th June 2015. The figures have been weighted and are representative of all UK adults (aged 18+).
About ACI Worldwide
ACI Worldwide, the Universal Payments company, powers electronic payments and banking for more than 5,600 financial institutions, retailers, billers and processors around the world. ACI software processes $13 trillion each day in payments and securities transactions for more than 300 of the leading global retailers, and 18 of the top 20 banks worldwide. Through our comprehensive suite of software products and hosted services, we deliver a broad range of solutions for payment processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.
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