- 93% say it is very or extremely important for Open Banking providers to be subject to the same regulatory oversight as banks
- Almost half (47%) of businesses surveyed now use Open Banking
- 59% say their current payment processes result in late payments
As awareness and adoption of Open Banking continue to grow among UK businesses, trust is emerging as the industry’s next major challenge, according to Payit by NatWest’s latest Frictionless Payments research.
The findings build on last year’s research, which identified lack of awareness as a key barrier to Open Banking adoption, with 28% of businesses saying they had not yet adopted it because they did not understand it. This year almost half (47%) are now using Open Banking, while 94% say they are likely to trial it as a payment method in the next 12 months. The shift suggests Open Banking is moving from an unfamiliar technology to an increasingly considered payment option, putting greater focus on whether businesses trust the providers behind it.
That confidence is closely linked to regulation. 93% say it is very or extremely important that Open Banking providers are subject to the same requirements and regulatory oversight as banks, suggesting businesses want the benefits of Open Banking alongside the protections they associate with established financial institutions. For providers, building trust will be critical to converting growing interest into adoption.
Meanwhile security is also emerging as a driver of adoption. 34% say increased security and fraud prevention would make them more likely to adopt Open Banking, while over a quarter (27%) say they would be encouraged if a well-known financial institution were offering Open Banking services. This reinforces the importance of both robust security and trusted providers in building confidence.
Payment friction remains a significant issue for businesses. 59% say their current payment processes result in late payments, while over half (55%) say they are not efficiently integrated with existing infrastructure. These challenges can create additional administration and disruption, highlighting that businesses need payment systems that work seamlessly within their wider operations. Ultimately, overcoming these operational hurdles depends on choosing a payment partner you can trust to keep your cash flow moving and your systems connected.
Speed is another frustration. More than half (55%) say payments from customers are too slow, compared with 49% last year who said payment processing was not fast enough. The rise suggests that faster payments are becoming an increasingly important expectation for businesses, rather than simply a desirable feature.
The impact can extend beyond payments themselves. Among businesses experiencing issues with late payments, 23% say this increases operational costs, 22% say it affects customer satisfaction and retention, and 20% say it limits growth potential. For businesses, payment friction is therefore becoming a wider commercial issue, with consequences for costs, customer relationships and growth – further emphasising the need for a trusted partner.
The findings point to a clear next step for Open Banking providers: building trust alongside adoption. Working closely with banks, engaging with regulatory groups and demonstrating robust cybersecurity and fraud-prevention measures will be increasingly important as businesses decide which providers they are prepared to trust with their payments.
James Hodgson, CEO of Payit by NatWest, comments:
“Businesses are increasingly open to new ways of making and receiving payments, but the experience needs to be faster, simpler and more secure. Just as importantly, businesses want confidence that the providers they work with are held to the right standards.
“As Open Banking becomes more established, building trust will be critical to its continued adoption. Providers have an opportunity to work closely with banks and regulators, demonstrate robust security and give businesses confidence that innovation is being delivered alongside the right protections.”
Charlotte Crosswell, Former Chair and Trustee, Open Banking Ltd, adds:
“Open Banking is entering a new phase, and as adoption continues to grow, building and maintaining trust will be critical. Businesses and their customers need confidence that the providers they use can deliver secure, reliable services, and that the right customer protections are in place. Without this trust, the full potential of Open Banking will be difficult to realise.
“The opportunity now is to turn growing awareness and adoption into lasting value for businesses and their customers. Building trust must remain at the heart of this next phase - through continued innovation, strong customer protection and a focus on making payments simpler, more secure and more efficient. These will be key to giving businesses and consumers the confidence to embrace Open Banking and unlocking its full potential in the UK.”
Frictionless payments 2026 report
Notes to editors
Research conducted by Censuswide sampling 1,401 respondents across two waves. Wave 1: 801 UK Respondents aged 25+ (Treasurers, Heads of Payments, Heads of Strategy and Chief Investment Officer etc.). Wave 2: 600 UK-based senior financial decision-makers (Treasurers, Heads of Payments, Heads of Strategy and Chief Investment Officers). 150 per sector - professional services, financial services, education & transport. Surveyed in July 2026. Research conducted by Censuswide sampling 1,401 respondents across two waves. Wave 1: 801 UK Respondents aged 25+ (Treasurers, Heads of Payments, Heads of Strategy and Chief Investment Officer etc.). Wave 2: 600 UK-based senior financial decision-makers (Treasurers, Heads of Payments, Heads of Strategy and Chief Investment Officers). 150 per sector - professional services, financial services, education & transport. Surveyed in July 2026.
