Subj : Fraud fears are holding SMBs back from upgrading their payment sy
To   : All
From : TechnologyDaily
Date : Wed Sep 03 2025 10:00:09

Fraud fears are holding SMBs back from upgrading their payment systems

Date:
Wed, 03 Sep 2025 08:54:00 +0000

Description:
Consumers dont trust direct bank transfers when buying online  Pay by Bank 
could be the solution.

FULL STORY
======================================================================Consumer
s dont trust businesses that request bank transfers UK SMEs lost 6.15bn 
directly, and 31.4bn indirectly, in 2024 Pay by Bank is secure, quick and 
helps prevent fraud 

Open banking platform Tink says that SMEs in the UK alone lost 6.15 billion 
in direct sales last year because consumers dont trust manual bank transfers, 
with a further 31.4 billion in indirect losses associated with customers not 
returning. 

The news comes as Authorized Push Payment (APP) fraud  where customers are 
tricked into sending money from their account to a fraudsters account  
accounted for 450 million in losses throughout 2024. 

Two in five (41%) consumers now admit to walking away when theyre asked to 
make a manual bank transfer, with nearly three in five (57%) not trusting 
businesses that request payments via transfer. Consumers are (rightly) 
concerned about bank transfers 

The majority (86%) note feeling uneasy if the account name doesnt match the 
business, with a similar number (84%) also concerned if businesses dont offer 
multiple payment options. 

Manual bank transfers are often no longer fit for purpose and are holding the 
UK economy back, said Ian Morrin, Head of Payments at Tink. 

Despite widespread consumer concern, the majority (87%) of SMEs that accept 
manual bank transfers still rely on them regularly, or as their preferred 
payment method, highlighting a distinct need for modernization. 

This is even more worrying considering that SMEs make up 99.9% of the UKs 
business population, leading to billions in losses. 

Secure, recognised payment methods, whether that's Pay by Bank, digital 
wallets or card payments, give customers the confidence to complete purchases 
while helping businesses improve conversion, reduce fraud risk, and meet 
rising expectations around payment experience, Morrin added. 

Pay by Bank, enabled by open banking, opens up banks and services to 
communicate with each other, so instead of entering card details, customers 
can click a link to send a payment directly from their account, approving it 
in the app. 

Tink describes Pay by Bank as cost-effective for businesses, but it also 
helps to reduce fraud and losses. With payments also settling more quickly 
than legacy methods, it can speed up processes on ecommerce platforms and 
lead to higher levels of satisfaction. You might also like Check out the best 
payment gateways Weve listed the best mobile payment apps PayPal's new 
cross-border payments platform looks to make sending money easier for 2 
billion users



======================================================================
Link to news story:
https://www.techradar.com/pro/fraud-fears-are-holding-smbs-back-from-upgrading
-their-payment-systems


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