Prommt Sees 100 Percent Increase in Open Banking Adoption Rates

Prommt, a leading payment platform, has reported a more than 100 percent increase in the adoption of its Pay by Bank solution. Businesses in the UK and Ireland are processing tens of millions per month through open banking, with many choosing it as their default payment method.

Growth across Sectors

Prommt’s report highlights that the adoption of its Pay by Bank solution has doubled since April 2023. The platform has seen strong uptake from clients in the automotive, hospitality, hardware, and luxury retail industries.

The automotive sector is the top-performing sector for open banking with Prommt, with the highest single transaction recorded at €72,714.25. This is a significant increase from the April 2023 figure of €62,593.56, indicating growing confidence in Pay by Bank as a preferred payment method.

Pay by Bank vs Card Transactions

Insights from Prommt show that the average transaction value (ATV) for Pay by Bank transactions (€4,679) now quadruples that of card transactions (€1,147) within high transaction value verticals. While card remains an important payment method, there is a growing trend of processing higher-value transactions via Pay by Bank.

This solution, powered by Prommt, eliminates the need to share IBANs and account numbers, reducing friction for payers and often decreasing late payments.

Integrated Payment Options

Prommt’s platform has integrated both card and open banking capabilities. This allows their clients to choose the most cost-effective payment method for each transaction. This dual card/bank offering has led to higher open banking adoption and a consistent increase in transaction volumes each month.

Prommt’s clients have achieved over 93 percent payment success rates when using Pay by Bank and Card orchestration controls.

Future of Open Banking

According to Juniper Research, the global value of open banking-powered payments will surpass €300 billion by 2027, up from just over €54 billion in 2023. From 2020, the number of individuals worldwide using open banking services has surged, and this is predicted to reach 132.2 million active users by 2024.

Prommt’s checkout is accessible as a web payment, with Pay by Bank facilitating faster payment settlement and quicker access to funds. The solution also allows businesses to cut costs and protect margins by significantly reducing high processing fees, card fraud, chargebacks, and payment operation costs associated with time-consuming bank transfers, drafts, cheques and high-value card transactions.

Donal McGuinness, CEO of Prommt, said the company has seen soaring demand for open banking solutions and its ability to empower companies to achieve faster payments with reduced costs.