Infographic: How UK SMEs view open banking

August 9 2025

The Payments Association’s Open Banking Working Group survey of 500 UK SMEs reveals an uneven but active landscape for open banking adoption. While awareness is growing, a third of businesses still lack a clear understanding of what open banking entails.

The findings show a broad range of perceived benefits, such as faster settlements and lower transaction costs—offset by concerns around fraud, consumer awareness, and technical integration.

The infographic below presents a concise snapshot of the key insights, highlighting where progress is being made and where further support is needed to unlock open banking’s full potential across the SME sector.

OPEN BANKING SURVEY 2025 SNAPSHOT

business awareness of open banking

Awareness of open banking among UK SMEs is relatively high, but a deeper understanding remains inconsistent. A third of businesses either haven’t heard of it or recognise the term without knowing what it means. Improving clarity around terminology and communicating the practical benefits will be crucial to bridging this knowledge gap and supporting wider adoption.

1 in 3 UK SMEs are unaware or unclear about what open banking means
“Pay by Bank App” more widely recognised than “open banking” or “account-to-account”
Retailers show highest understanding, despite not having highest awareness
LONDON LEADS 75% of firms are planning account-to-account adoption

TOP PERCEIVED BENEFITS

SMEs see a range of potential benefits in adopting open banking, though no single advantage stands out as decisive. Enhancing customer experience, faster settlements, and lower transaction fees are the most commonly cited positives. The diversity of responses suggests open banking’s appeal is multifaceted, offering different value depending on sector, size, and strategic priorities.

top perceived barriers

Despite growing interest in open banking, adoption remains uneven due to a mix of perceived barriers. Fraud and security concerns, low consumer awareness, and technical integration challenges are the most frequently cited obstacles. No single issue dominates, indicating that overcoming resistance will require coordinated efforts across education, infrastructure, and consumer engagement.

top payment method suitability to merchants

Traditional payment methods like cards, direct debits, and digital wallets remain the most widely used and trusted among UK SMEs. Open banking ranks lower in perceived suitability, reflecting its early-stage adoption and the challenges still to be addressed. However, interest is growing—particularly among retailers and larger businesses—suggesting its role could expand as awareness and infrastructure improve.

This infographic summarises the headline findings from our 2025 survey of 500 UK SMEs, offering a snapshot of where open banking adoption currently stands—and where it’s heading. From varied awareness levels and perceptions of value to the barriers preventing wider uptake, the picture that emerges is complex and sector-dependent.

While no single benefit or challenge dominates, the data point to a clear need for better education, stronger infrastructure, and clearer communication across the ecosystem. For a more in-depth look at the results, including expert commentary and sector-specific analysis, read the full report below.