FICO - FICO Survey: UK Consumers Trail Europeans in Real-Time Payments

A recent survey by FICO reveals that UK consumers lag behind their European counterparts in the adoption and trust of real-time payments (RTP). Conducted across 14 countries, this research highlights that while 79% of UK consumers have utilized RTP, this figure is significantly lower than the 94% in Sweden and 83% in Germany. In terms of security perception, only 35% of UK respondents consider RTP to be more secure than credit cards, starkly below the global average of 51%.

The findings suggest a growing wariness among UK consumers, particularly in light of escalating scam losses, which exceeded £450 million in 2024. James Roche, a principal fraud consultant at FICO, emphasizes the importance for UK banks to bolster consumer confidence in RTP through effective communication regarding security measures. Notably, 23% of British respondents expressed uncertainty about the adequacy of security checks in RTP processes.

Further revealing insights show a national disparity, with Dutch consumers only at 25% favoring RTP security, while Spanish respondents were notably more confident at 40%. Roche indicates that the high incidence of authorized push payment fraud contributes to consumer hesitance, necessitating banks to enhance their scam protection technologies.

The survey underscores the critical role banks play in educating customers and equipping them with the tools to safeguard against fraud as RTP usage rises. In an evolving payment landscape, adaptive communication strategies will be essential for banks to assure customers of their financial security while encouraging the adoption of modern payment methods. For more detailed insights, refer to FICO's full report.

The FICO survey paints a stark picture of the UK consumer's adoption of real-time payments (RTP) compared to their European counterparts. With only 79% of UK consumers having engaged in RTP, versus 94% in Sweden and 83% in Germany, it's evident there is significant room for growth in this sector. The findings suggest a pressing need for UK banks to address consumer concerns regarding the security of RTP, especially as scam losses reached £450 million in 2024.

The survey reveals that just 35% of UK consumers view RTP as more secure than credit cards, markedly below the global average of 51%. This hesitancy is likely rooted in the high incidences of fraud, like authorized push payment scams, which are raising consumer apprehensions. Given that nearly a quarter of Brits lack clarity on the security measures associated with RTP, it's crucial for banks to enhance their communication strategies to educate customers on fraud protection and secure payment practices.

For investors and financial institutions, this presents a strategic opportunity: there is a clear market gap for innovative solutions that bolster consumer confidence in RTP. Banks that invest in advanced scam protection technologies and actively engage in customer education will not only safeguard their users but also position themselves as leaders in the evolving payments landscape.

As RTP continues to grow, consumer expectations will shift. Institutions that adopt a customer-centric approach—emphasizing transparency, security, and proactive engagement—can capitalize on the demand for more secure payment solutions. In conclusion, as UK banks race to catch up to their European peers in RTP adoption, the emphasis on security and consumer confidence will be critical in shaping the future of payments in the region.