Yaspa Reveals Insights from Latest Study on UK Payments Sector
Yaspa, the award-winning fintech firm specializing in instant payments and identity services, has unveiled the results of its second annual Yaspa Index. The 2026 report highlights a significant contradiction in the UK payments landscape: while transactions powered by open banking surged by 53 percent year-on-year in 2025, consumer familiarity with the associated terminology is declining.
In collaboration with YouGov, Yaspa conducted a survey involving 2,157 adults across the UK. The findings revealed that only 38 percent of respondents recognize the term ‘Pay by Bank,’ a drastic decline from the 55 percent reported in the previous year. This illustrates an emerging challenge for the industry, marked by a lack of coherent terminology.
The report points to the confusing language used by merchants and payment providers—terms like “instant bank transfer,” “account-to-account,” and “open banking” are often used interchangeably, leaving consumers more bewildered than informed at checkout. In contrast, familiar phrases from traditional banking, such as BACS, maintain high recognition among 77 percent of the population, primarily due to their consistent use over decades.
Link Between Familiarity and Consumer Trust
The Yaspa Index underscores the critical relationship between consumer familiarity and trust. Security and ease of use continue to be the top priorities for online shoppers. However, encountering terms that are unfamiliar can create psychological barriers, leading consumers to abandon newer technologies in favor of more recognized, albeit slower payment methods.
James Neville, CEO of Yaspa, emphasized the importance of addressing communication issues within the industry. He stated, “The 2026 findings are a clear signal that the industry’s lack of alignment on language is holding back the potential of open banking. Consumers appreciate the speed and security that Pay by Bank offers, but they won’t gravitate toward options they do not recognize.”
Neville further asserted that establishing a standardized, consumer-friendly term is vital for the growth of this technology. By alleviating the cognitive burden on users to discern between similar payment options, the financial sector can build the trust necessary for widespread adoption.
Yaspa’s Commitment to Innovation Amid Terminology Challenges
While the industry contends with this terminology challenge, Yaspa remains focused on fostering innovation through its Intelligent Payments platform. This advanced system combines artificial intelligence with real-time open banking data, offering actionable insights to merchants, which include smooth affordability checks and effective fraud detection—all while ensuring a seamless consumer experience.