UK shoppers nearly match card use with bank payments

Paying by bank is now almost level with card use among UK online shoppers, according to a survey of 2,000 UK adults commissioned by Brite Payments.

The report found that 40% of respondents often or regularly pay directly from their bank account when shopping online, compared with 41% who said they regularly pay by credit card. It also found that 62% use bank-based payments at least sometimes, while 18% said they never do.

Security was the main reason consumers chose to pay by bank. Half of users, or 50%, cited it as a reason for choosing the method, ahead of avoiding extra fees at 37%.

The research also pointed to a strong preference for local or regional oversight of payments. Some 72% of UK shoppers said it matters that their payments are handled by a UK or European provider.

Among those respondents, 46% said the main reason was to keep their personal financial data under UK and European privacy law. Other reasons included protection from foreign political disputes or sanctions, cited by 22%; concern about foreign control of financial systems, at 17%; and keeping transaction fees in the UK and European economy, at 14%.

The figures come as debate over the structure of the UK payments market continues, with banks seeking support for a domestic alternative to international card networks. The survey suggests that trust, data handling and checkout design are becoming more visible factors in how consumers choose to pay online.

Changing habits

Brite, which focuses on account-to-account payments, said the findings show consumers are becoming more comfortable paying directly from bank accounts at checkout. The company operates across 27 European markets and is connected to more than 3,800 banks.

The survey defined paying directly from a bank account as including Pay by Bank and direct bank transfer at checkout. The figures are self-reported and combine responses from people who said they use the method often or regularly.

Lena Hackelöer, Founder and Chief Executive Officer of Brite Payments, said the shift reflects both practical and regulatory concerns among shoppers.

"People choose how to pay based on convenience and trust. Shoppers want their financial data protected under UK and European privacy law, and they're paying closer attention to where their money and data go when they click pay. Paying directly from a bank account is now almost as common as using a credit card, and for merchants that presents a tangible opportunity to offer a payment method that benefits both themselves and consumers in terms of privacy, convenience and speed. Cards will always have a place at the checkout, but UK shoppers can now have a real choice in how they pay. The next step is making Pay by Bank as easy to find at checkout as it is to use."

Privacy focus

The findings indicate that data governance is a more prominent issue for consumers than fees alone. While avoiding extra charges remained an important factor for more than a third of respondents, privacy law and the location of payment processing appeared to carry more weight.

That preference may have implications for retailers and payment providers serving UK consumers online. Checkout pages have long been dominated by card options, but the narrowing gap with bank-based payments suggests merchants may face pressure to give alternative methods greater prominence.

The results also highlight how closely payment choice is linked to perceptions of control over personal data. For many respondents, the issue was not only the mechanics of a transaction but also which jurisdiction governs the handling of financial information.

Research for the report was conducted by Appinio on behalf of Brite Payments using a nationally representative sample of 2,000 UK adults. Respondents were evenly balanced by gender and had an average age of 42.9.

The study offers a snapshot of a payments market in which card use remains deeply established but direct bank payments are moving into the mainstream, with only 1 percentage point separating the two methods among shoppers who said they use them often or regularly.