New financial evaluation from open banking platform Tink and the Centre for Economics and Enterprise Analysis (Cebr) has discovered that UK small and medium-sized enterprises misplaced an estimated £6.15billion in direct gross sales final yr as a result of shopper mistrust of guide financial institution transfers.
The report highlights a widespread ‘concern of fraud’ that can also be driving a possible £31.4billion in oblique losses from lowered buyer loyalty and repeat enterprise.
The findings, primarily based on surveys of two,000 shoppers and 500 SME leaders, reveal a major disconnect between enterprise practices and buyer expectations. Whereas 87 per cent of SMEs that settle for guide financial institution transfers nonetheless depend on them as a daily cost technique, 41 per cent of shoppers say they’d abandon a purchase order if requested to pay this fashion.
This mistrust is widespread, with 57 per cent of buyers stating they don’t belief companies that request guide transfers, and 67 per cent worrying particularly about being scammed into paying a fraudster.
A 2025 report from UK Finance recorded that £450 million was misplaced to authorised push cost (APP) fraud in 2024, a criminal offense the place victims are tricked into sending cash on to a legal’s account. This backdrop of rising fraud is making shoppers more and more cautious on the checkout, particularly when cost strategies lack built-in safety.
Shoppers voting with their wallets
The analysis exhibits that belief is a significant factor in a shopper’s determination to finish a purchase order. The concern of being scammed is not only a statistic; it interprets into real-world deserted gross sales and broken enterprise reputations.
One shopper, Peter Richards, shared {that a} earlier scamming incident has made him extraordinarily cautious of guide transfers. When a letting agent lately requested for a cost to an account the place the identify didn’t match the enterprise, he felt compelled to go to their bodily workplace to confirm the request. “In the event that they didn’t have a bodily retailer presence, I wouldn’t have paid,” he acknowledged.
This sentiment is shared by others who really feel susceptible. Anne Vivian-Smith, one other shopper, defined her determination to cancel hiring a gardener who requested cost through a guide financial institution switch despatched over textual content message. “I had no method to double-check if the account was official, and I didn’t need to put myself in a susceptible place,” she stated. “In the long run, I made a decision to not go forward along with his companies. It wasn’t definitely worth the stress or the chance.”
These experiences again the report’s discovering that the cost choices provided by a enterprise closely affect buying choices for 81 per cent of shoppers. Moreover, two-thirds of buyers don’t belief companies that fail to make use of a recognised third-party cost supplier, indicating that safety and selection at the moment are baseline expectations.
The case for safe funds
With open banking adoption within the UK reaching 15 million customers, up from 10 million a yr in the past, the report factors in direction of trendy cost strategies like Pay by Financial institution as a safe different that may assist SMEs restore belief and defend income.
Ian Morrin, head of funds at Tink, commented: “Guide financial institution transfers are sometimes now not match for objective and are holding the UK economic system again. These strategies can create friction, gasoline fraud fears, and in the end erode buyer belief. In at present’s panorama, the place belief and selection are non-negotiable at checkout, companies can’t afford to depend on outdated cost strategies that price them each gross sales and loyalty.”
He additionally added: “Safe, recognised cost strategies, whether or not that’s Pay by Financial institution, digital wallets or card funds, give clients the boldness to finish purchases whereas serving to companies enhance conversion, cut back fraud danger, and meet rising expectations round cost expertise.”
Tink, as a part of Visa A2A, is working to deliver higher protections to Pay by Financial institution funds, aiming to offer a stage of safety usually related to card transactions.