No matter where you turn, what were once considered “alternative payments” are becoming the norm. While debit and credit cards are still the primary method of payment in some countries, online banking e-payments are growing in popularity among many Europeans.
But why are online banking e-payments on the rise?
New legislation is opening up opportunities for FinTech innovations. New open banking standards will facilitate payment businesses to deliver integrated local value across Europe to both merchants and consumers alike, providing flexibility to consumers who want to make payments straight from their bank accounts without a credit card.
New EU regulations also prevent companies from surcharging, putting cost back in focus. Consequently, online banking e-payments are appealing because they are cheaper to process and also limit companies’ financial exposures due to their immediate nature.
Technological and country connectivity advances are enabling safer, faster and more convenient authentication methods. In Sweden, for example, the government has heavily invested in developing a strong technical infrastructure. This led to a generation of very technically savvy people who are quick to take up new technologies. As a result, the adoption of Mobile BankID has more than tripled in the past three years. The growing acceptance of a secure and mobile-friendly authentication methods, like digital/push TANS and touch ID, paves the way for an increase in online bank payments because they aren’t subject to chargebacks and fraud risk, like more traditional forms of payment are.
People want more flexibility in how they pay. This is especially true in the airline sector. Travellers want their local experience that is aligned and integral to their day to day lives. The ability to select which bank account they wish to pay from (their current or savings, for example) is just that!
Given the rise in popularity of online banking e-payments, a checkout offering only the option to pay by card is simply incomplete. There’s clearly much to be gained from offering a payment mix that will be familiar to and convenient for your customers. By understanding consumer preferences across Europe and completing the checkout with popular new forms of payment, travel merchants with European customers will be equipped to unlock the full potential of the European market.
Trustly is a licensed payment service provider that makes offering online banking e-payments fast, simple and secure. By signing just one agreement, you can accept payments from travellers in 29 European countries. Read more at trustly.com/travel.