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Education

the majority believing they’re safer
than traditional payments.
But while security is top of mind for most
Given consumers' lowering tolerance customers, they're not prepared to jump
for risk and unwillingness to accept
more friction, embedded payments through an infinite number of hoops to make
are a huge opportunity. By educating online commerce safer.
customers about the technology's
benefits—particularly striking a
better balance between security and
convenience—merchants can boost A great, streamlined user experience is table stakes.
trust and increase loyalty while
building a healthy new revenue From a merchant's perspective, offering a broader mix of payments, including
stream. eCash, is a must. Customers want more flexibility and control. Forcing them to

5. Neobank adoption has use a particular payment method won't cut it.
reached a tipping point
To build stronger, lasting relationships, merchants must engage and educate
After a challenging period early in customers. While technologies like embedded payments can make payments
the pandemic, neobanks are back safer and more convenient—and neobanks can offer better value—concerns
on track. App downloads spiked and misconceptions won't go away unless they're tackled head on.
during 2021 (https://bit.ly/3JsJZy9).
And almost half of the consumers Chirag Patel is CEO of the newly expanded Digital Wallets division at Paysafe, a leading special-
we surveyed—49 percent—are ized payments platform. He is an international payments executive with over 20 years’ experience
considering switching to a neobank.
gained in a diverse range of roles for well-known, global organizations. Connect with him at www.
linkedin.com/in/chiragpatel4/?originalSubdomain=uk.
Now that the bulk of everyday
banking happens online, regardless
of whether you use a neobank or an
incumbent, it looks like customers
increasingly perceive neobanks
as being a better value and more
attuned to their needs. The most
common reasons given for preferring
neobanks were that they have lower
fees (41 percent); their apps are better
(41 percent); and they have features
that help you stay in control of your
spending (40 percent).

But while neobanks have never been
closer to mass adoption, they still have
work to do. According to 57 percent
of respondents, incumbents have
the edge when it comes to customer
service. And while being digital-only
may no longer be a deal-breaker,
consumers remain worried about
managing their finances entirely
online, handing over personal data,
and not being able to deposit cash.
What’s next?

With inflation projected to rise
further, customers are likely to
become even more selective about
how they spend money online.
They'll also continue expecting to
pay securely with minimal friction.

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