Open Banking Buyer's Guide (TrueLayer)

Summary

• European ecommerce sales are projected by JP Morgan to reach €940 billion by 2023.p.3
• The survey conducted by YouGov gathered responses from 1,241 online shoppers and ecommerce merchants.p.4
• Almost half of surveyed merchants (49%) selected the high cost of payments as one of their top two payment pains.p.5
• Cards remain the dominant online checkout method, with 50% of shoppers using them primarily.p.6
• Three in four merchants (74%) report that open banking payments are part of their long-term strategy.p.7
• A large majority of shoppers (81%) expect refunds from online purchases in one week or less.p.17

Key insights

1. Card-not-present fraud in Europe increased by 39% between 2013 and 2018 to reach €1.43 billion.p.3
2. Strong Customer Authentication requirements could reduce conversion rates on card payments by 20-30%.p.3
3. Concerns regarding payment security have prevented 69% of shoppers from completing an online purchase.p.5
4. 63% of shoppers report being comfortable using instant bank transfers for online purchases.p.7
5. Merchants adopting TrueLayer achieve an average 30% share of checkout for instant bank transfers within a few months.p.8
6. 31% of merchants identify high payment costs as their primary pain point with payment providers.p.10
7. Merchants with average order values over £500 spend an average of £235,140 each year on chargebacks.p.13
8. 42% of shoppers under 45 prefer biometric authentication like face or touch ID, compared to 24% of shoppers aged 45 and over.p.16