Setting up for success: what we’ve learnt from the evolution of Payit™

The Curiosity rover lands on Mars. Joe Biden is inaugurated as US president. And TIME magazine names it the world’s worst year ever.

What do these three things have in common? They all happened in 2020, which also marked the launch of NatWest’s Open Banking venture Payit™.

Lynsey Hunt, Head of Payit™ Products, brought up these disparate events at our recent customer event to highlight that Payit™ was born in a turbulent time - one in which the payments sector, and the world at large, was undergoing huge transformation.

But we’ve learnt that from challenging times comes great opportunity to change the status quo.

Open Banking began as a mandate for open data sharing, which the UK’s banks had to respond to. But we recognised that there was the chance to create something genuinely exciting that could transform the customer experience.

The secret to making the most of an opportunity like this is ensuring you make it as easy as possible for the customer to choose something new.

So how do we turn psychology into sign ups? Let’s explore the lessons we’ve learnt to best unlock success for both you and your customers.

Creating the eureka moment

Understanding the stakes behind customer adoption is crucial to continuing to build momentum behind Open Banking.

To do this, Tamian Godfrey, Market Development Lead for Payments and Data, highlighted that there’s a lot at play when a customer goes to choose a payment method.

Old habits, a preference for familiar territory, a lack of understanding, the fear of something new: these are all emotional responses that can prevent someone from taking the leap and trying an Open Banking solution that will ultimately benefit them.

The task is to make it easier for customers to make that leap. And that can be achieved through clever UI and design when they reach the payment screen.

“My recommendation here would be that you break away from the business-as-usual payment page and reconstruct the journey,” Tami said. “They have to see that something’s new. The key is to give the user everything they need to make an informed and confident decision in a single glance.”

This starts with something as simple as ordering the Open Banking option at the top of the list, so it’s the first thing they see. Next, remove extraneous details about more traditional payment options to take customers out of autopilot, and keep all the key information about Open Banking on the same screen instead of hiding it behind links or ‘see more’. That way, you’re giving the user everything they need to make an informed and confident decision in a single glance.

Customers who try a solution like Payit™ for the first time are likely to become repeat users. So being careful about your implementation process can make a real difference to adoption.

We can help with this, from product demos and troubleshooting to bespoke setups and support with marketing materials. It’s all about making sure you’re set up from day one, so that you’re making it as easy as possible for your customers to just get it. That way, they keep coming back for more.

Connecting customers to their data

Open Banking is still in its early days, but as customer adoption increases, it’s clear that there is already real value to be unlocked today.

For example, Variable Recurring Payments (VRPs) are making sweeping – ‘me to me’ payments such as transferring funds from one current account to another – easier and more transparent. It’s what Lynsey describes as a long-held connection.

Customers can establish an agreement with a trusted merchant or financial institution and set the parameters and limits so they’re fully in control of how data and funds are shared. By agreeing the terms from the get-go, customers can benefit from seamless automated transfers of funds – because all the data sharing is taken care of.

What is so exciting about VRP is that banks can now charge third party providers for the use of their APIs, meaning there is an entirely new market being established with healthy competition and innovation.

An evolving proposition

So what can customers expect next from Open Banking? The first step along the road is ensuring that all innovations have consumer protection built in.

For regular recurring payments such as utilities bills or subscriptions mean that the data partnership between consumer and financial institution will be ongoing for a long amount of time. Ensuring this partnership remains secure as the volume of data increases will require more work across the industry, but we’re already seeing how additional security layers are having an impact.

The road ahead is an exciting one. From one-off payments to truly sophisticated data partnerships, Open Banking is transforming the experience for merchants and customers alike. Getting your customers onboard and building your own trust in the long-term growth of the proposition, is all about that eureka moment – when things just click.

We know that sometimes it takes time. As humans, we return to our habitual ways all too easily. But careful and considered implementation works because it’s not asking customers to change.

Instead, Open Banking will thrive when we meet customers where they already are – so we can show them how they already have the keys to unlock amazing experiences.

Ready to have your eureka moment?

Find out more about how Payit™ can revolutionise your customer experience today.