Nearly three quarters (73%) of consumers are familiar with Pay by Bank, according to data from Brite Payments and YouGov.

Speed and security were cited by nearly half of respondents as primary reasons to opt for Pay by Bank. The service is also known as Account-to-Account or A2A payments.

The way consumers pay is changing. Pay by Bank is emerging ranks as a top three payment method in the UK, Netherlands, Finland, Spain and Germany.

A report, entitled Instant Economy Payment Insights, released by Swedish-based instant bank payments fintech, Brite Payments, details how payment habits and preferences are evolving. It also reveals why Pay by Bank is gaining traction amongst a growing number of consumers.

Instant Economy Payment Insights report highlights

Nearly three-quarters (73%) of all respondents are familiar with Pay by Bank as a payment method. This rises to 90% in the UK and 97% in the Netherlands.

More than one-third (36%) of all respondents aged 18-29 already use Pay by Bank either daily or weekly. 25% do so across all age groups.

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Pay by Bank is three times more likely to be used on a daily or weekly basis than Buy Now Pay Later (25% vs 7%).

42% of regular Pay by Bank users opt for the payment method because of speed.

59% of respondents cite security as a primary factor determining their choice of payment method for online purchases. Meantime, 54% cite ease of use.

Needing to create an account to complete a payment (22%) and needing to use an app to make a payment (17%) are the most frequently encountered issues with online payment.

Over half of consumers consider more than an hour for a payout is unreasonable

And 50.1% believe waiting more than an hour for a payout (payment from a business to a consumer) is unreasonable.

“Immediacy and convenience are at the core of today’s instant economy. Consumers now expect real-time interactions across all digital touchpoints and in all facets of their lives,” said Lena Hackelöer, Founder & CEO, Brite Payments.

“However, the promise of a true instant economy remains unfulfilled. In part, this is because it requires an entire ecosystem of digital payment technologies that have struggled to keep up with changing consumer needs.”

Despite consumer demand for convenience, security ranks as the most important factor when considering a new payment method (73% of respondents), higher than fees (64%) and ease of use (47%).

Speed also emerges as a key consideration in consumers’ choice of payment method. More than a third of respondents placed high importance on immediately seeing transactions reflected on their accounts. This rises to nearly half for the Netherlands (44%) and Spain (46%).

A new generation of A2A solutions based on open banking is emerging

“Account-to-account payment methods are not entirely new. In fact, they are well established in many European markets. What is noteworthy is that a new generation of Pay by Bank or A2A solutions based on open banking is emerging. These not only address merchant pain points but also clearly converge with consumer demands for more convenient and secure payments,” concluded Hackelöer.

Brite Payments enables instant account-to-account (A2A) payments and payouts, leveraging Europe’s open banking infrastructure. Brite announced a $60m fundraise in October 2023.