'Pay by Bank' awareness falls as usage soars in UK

UK consumer familiarity with the term "Pay by Bank" has fallen sharply over the past year, even as open banking payments grew by more than half, according to research commissioned by fintech Yaspa.

The study found that 38% of UK adults recognise the phrase "Pay by Bank", down from 55% in 2025. Over the same period, open banking-powered payments rose 53% year on year through 2025, which Yaspa says points to a widening gap between usage and awareness.

The 2026 Yaspa Index, conducted by YouGov for Yaspa, surveyed 2,157 UK adults on recognition of payment terms and preferences when paying online.

Language problem

The findings point to inconsistent naming across the payments industry. At checkout, consumers see a mix of labels, including "instant bank transfer", "account-to-account", "open banking payments", and "Pay by Bank". The research suggests this variety dilutes recognition rather than building it through repetition.

By contrast, older payment terminology remains widely understood. The survey found that 77% of respondents recognise BACS, reflecting decades of repeated use in banking and consumer communications.

Yaspa argues that inconsistent language affects decisions at checkout. Security and ease of use ranked as consumers' top priorities when choosing how to pay online, and the research suggests unfamiliar wording can deter users even when the method is designed for faster settlement.

James Neville, Yaspa's chief executive, said the results show a need for industry alignment on language and presentation.

"The 2026 findings are a clear signal that the industry's lack of alignment on language is holding back the potential of open banking," Neville said.

"Consumers value the speed and security that Pay by Bank offers, but they won't actively choose a method they don't recognise. Standardising a universal consumer-facing term is essential for scaling. By removing the burden on users to differentiate between identical payment methods, we foster the trust necessary for mass-market uptake," he added.

The Index frames the fall in recognition as a step backwards rather than a plateau. It does not link the decline to reduced adoption of open banking payments; instead, it points to ongoing variation in how merchants and payment providers describe similar bank-to-bank payment flows.

Signals and cues

Payments branding has historically relied on consistent language and shared markers. Card payments benefit from familiar naming and widely used visual cues such as the contactless symbol. The report also points to Buy Now Pay Later as an example where repeated naming has improved public understanding in a short period.

The Yaspa Index suggests recognition does not accumulate when labels change frequently between retailers, platforms, and checkout pages. For consumers, that can make it harder to spot a payment option they have used before, even if the steps and security controls feel familiar.

Demographic gaps

The survey also highlights differences by age and gender. Awareness of account-to-account payments and open banking was higher among men than women. Familiarity was also stronger among younger respondents, while older groups were less likely to recognise newer terms.

The report suggests that longevity and repetition matter more for recognition than whether someone has used open banking indirectly during an online purchase.

Kate Marsden, Yaspa's chief marketing officer, said Pay by Bank works best when presented clearly.

"Pay by Bank sits at the intersection of simplicity and trust. It's a payment method that lets consumers authorise a payment directly from their bank account to a business with clear, secure steps and no need for card details or manual transfers. In the UK, more than 16.5 million consumers are now connected to open banking services and this adoption continues to grow as platforms embrace bank-initiated payments in more experiences. But the Index reveals that the industry is missing an opportunity to align and drive a coordinated, consistent presentation of Pay by Bank that would only benefit consumer understanding and drive further growth. We'd love to see this change," Marsden said.

Company context

Yaspa sells payments and identity services linked to open banking. It operates in the UK, Europe, and the US, with offices in London, Leeds, and Atlanta. Yaspa says it is regulated by the Financial Conduct Authority in the UK.

It also markets its Intelligent Payments platform, which uses AI and real-time open banking data. Yaspa says the product provides merchants with insights, including affordability checks and fraud detection.

With open banking payment volumes rising, the survey results are likely to add to the debate over whether the industry needs a common consumer-facing label and a consistent set of checkout cues that work across banks and merchants.