Recent research from Nuapay revealed that over half of Payment Service Providers (PSPs) expect their payment flows to convert over to Open Banking in three years time.
The research also surveyed Independent Software Vendors (ISVs), with one in ten expecting more than three quarters (76%) of their payment flows to move into Open Banking during the same time frame.
Furthermore, this growth is expected to accelerate over the next three years by over half of UK PSPs (51%) and ISVs (57%).
Annemarie Graham, Director of Strategic Partnerships, Nuapay, commented: “The growth anticipated from PSPs highlights the amazing momentum behind Open Banking.
“Expecting over half of payment flows to come from Open Banking in three years is huge. The PSPs that don’t ride this wave will certainly get left behind.”
With businesses noting Open Banking’s potential, many are exploring the use cases delivered by the technology, with Variable Recurring Payments (VRPs) and Request to Pay (RtP) being cited as ”two of the most exciting use cases of Open Banking”.
More than three-quarters (76%) of PSPs and 78% of ISVs are planning to integrate VRPs or RtP into their offering in the future.
However, PSPs see a lack of education and an agreed framework as key obstacles to the wider rollout of VRPs and RtP. 63% believe that the business benefits of VRPs need to be made clearer, whilst 57% believe that a better regulatory structure is required to make RtP a possibility.
Brian Hanrahan, CEO of Nuapay, added: “It’s fantastic to see so much optimism from PSPs and ISVs regarding the growth of Open Banking, with our findings highlighting that they expect even faster growth in the coming three years.
“VRPs have the potential to fuel this next stage of adoption. However, the industry needs a standardised framework for this to happen. In the meantime, we have created an alternative solution, Authenticated Mandates, that PSPs/ISVs can use now, that interweaves Open Banking with Direct Debits.”
