Swipe, click, paid! The explosive rise of faster payments & remote banking in B2B transactions
The UK Finance Payment Card Spending Report, published earlier this month, sheds light on more than just consumer trends; it uncovers a major shift towards a digital-first approach in financial transactions. Debit cards have surged ahead as the go-to payment method, with contactless payments increasing by a staggering 30%. Beyond this, however, lies the real story: the rapid rise of faster payments and remote banking.
So, what does this landscape-altering shift mean for consumers and businesses alike?
Faster payments enable quick, real-time transactions between bank accounts in the UK. In 2017, the UK’s Financial Conduct Authority reinforced this trend by introducing Payment Services Regulations, requiring companies to improve their operational resilience. This regulatory support has likely fuelled the consumer preference for speed and convenience in financial transactions, a sentiment echoed by Oliver Prill, CEO of leading financial platform, Tide. He stated, “Open Banking needs to become a business opportunity, not a threat.”
UK Finance reveals that faster payments grew by 17% in 2022, reaching 4.3 billion in revenues. In line with this, remote banking services like online and mobile banking were used by 86% of adults last year. The convenience of these platforms has not only led to increased financial awareness but also to potentially smarter spending habits.
Businesses are also beneficiaries of this trend. They have significantly contributed to the growth in faster payments, which helps to simplify supply chain payments, facilitate quick compensation, and enhance customer satisfaction by eliminating wait times. Moreover, in 2022, 84% of UK consumers turned to fintech to manage their money, demonstrating broad use across different demographics.
With a ten-year forecast indicating continued growth in faster payments, it's evident that this payment method is here to stay. As Open Banking gains more traction, we can expect faster payments to become even more integrated into various financial systems.
Both consumers and businesses are already benefiting from the accelerated pace of efficiency and convenience in financial transactions. The UK Finance report goes beyond mere projection—it validates that faster payments and remote banking are already deeply integrated into our everyday lives. With debit card spending in June rising by 5% year-on-year and contactless transactions witnessing a 10.5% increase, it's not just a transformation but a revolution in how we manage our finances.