Nearly half of UK adults are unfamiliar with the term ‘Pay by Bank’, despite its growing presence at online checkouts, according to new research by real-time payment provider Yaspa.
While 55% reported familiarity with the term ‘Pay by Bank’, 45% of those polled remained unaware of the definition, with familiarity higher among males (57%) than females (53%).
The inaugural Yaspa Index surveyed more than 2,000 adults in the UK and found that familiarity with the payment method Pay by Bank differed across generations, as well as gender.
Among Baby Boomers – which is the generation born between 1946 and 1964 – 48% reported familiarity with the term, versus 52% who are unfamiliar.
Those born between 1965 and 1980, commonly known as Gen X, reported similar levels of familiarity, with 51% recognising the term ‘Pay by Bank’ and 49% who are not aware of it.
Familiarity with Pay by Bank rises among Millennials and Gen Z, however, at 60% and 69%, respectively.
The Yaspa Index also asked consumers about their awareness of other payment terms, including account-to-account payments, Open Banking, Bacs and Faster Payments.
Fully half of UK adults are familiar with the term ‘account-to-account payments’, with males more familiar with this payment method than females, at 54% versus 47%, respectively.
Only 28% of UK adults reported being familiar with ‘Open Banking’, rising to 36% among male respondents versus 21% of female respondents.
The majority of respondents are familiar with the payment methods ‘Bacs’ (83%) and ‘Faster Payments’ (55%).
The Yaspa Index also revealed that security (72%) and ease of use (66%) are the top priorities for consumers choosing a payment method.
It found that, while QR code payments are on the rise, only 27% of respondents used them for transactions in the past year.
Kate Marsden, chief marketing officer at Yaspa
Kate Marsden, chief marketing officer at Yaspa, said: “Open Banking has the potential to revolutionise payments, offering faster, more secure, and cost-effective transactions.
“However, our research highlights a key challenge: naming conventions matter. ‘Pay by Bank’ is gaining traction, but its meaning remains ambiguous to many consumers.”
She added: “The Yaspa Index 2025 serves as a benchmark for industry awareness and provides valuable insights for businesses looking to optimise their payment offerings.”
Earlier this month, Yaspa entered a strategic partnership with Playbook Engineering, a UK-based company that provides a global betting platform for the gaming industry, to bring instant bank payment solutions to Playbook’s online betting sites.
