Brits’ ‘fear of fraud’ cost UK SMEs £6.15bn in the last financial year
UK SMEs relying on outdated manual bank transfers as a primary method of payment lost out on an estimated £6.15bn in sales last year.
That’s according to economic analysis based on new research from Tink, a market-leading open banking and payments platform. The study surveyed 2,000 UK consumers and 500 SME leaders to understand how this payment method is driving a ‘fear of fraud’ – a risk validated by the UK Finance 2025 Fraud Report1, which recorded that £450 million was lost to Authorised Push Payment (APP) fraud in 2024.
Tink’s findings show that 87% of SMEs that accept manual bank transfers still rely on them as a regular or preferred method of payment. These transfers remain common for things such as paying an up-front deposit for a building service, or for a medical appointment.
Manual bank transfers are fuelling fraud fears – and driving customers away
This erosion of trust is translating directly into lost sales. UK SMEs, which make up 99.9% of the UK’s business population2, are particularly exposed. When asked to send money via manual bank transfer into a personal bank account, 41% of consumers surveyed say they would abandon the transaction altogether.
According to the research, this is because nearly three in five (57%) consumers say they don’t trust businesses that request this method. In fact, 67% worry about being scammed into paying funds directly into a fraudster’s account when sending a manual bank transfer. 86% also feel uneasy when the bank account name doesn’t match the business they’re sending money to – a small detail that can destroy trust at checkout.
This trust gap is costing more than short-term sales. The analysis also estimates a potential indirect annual cost of £31.4bn to SMEs relying on payment via manual bank transfer in lost customer loyalty, as consumers say they’re unlikely to return to businesses that ask for payment via manual bank transfer.
Payment trust matters and consumers are voting with their wallets
When it comes to making a purchase, payment options matter. Four in five consumers (81%) say the methods available at checkout influence whether they choose to purchase from a business.
Trust is also a major factor. Two in three (66%) respondents say they don’t trust businesses that don’t work with a recognised third-party payment provider.
Beyond trust, choice also matters. 84% of consumers say they’re concerned when a business doesn’t offer multiple payment options — signalling that flexibility, security and transparency are now baseline expectations.
Pay by Bank offers a secure, trusted alternative for businesses
Ian Morrin, head of payments at Tink, said: “Manual bank transfers are often no longer fit for purpose and are holding the UK economy back. Whether it’s covering medical bills or making an upfront payment for a high-ticket item like a new car, consumers are uncomfortable being asked to send money without the reassurance of a trusted payment provider.
“These methods can create friction, fuel fraud fears, and ultimately erode customer trust. In today’s landscape, where trust and choice are non-negotiable at checkout, businesses can’t afford to rely on outdated payment methods that cost them both sales and loyalty.
“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.”
Tink is part of Visa A2A which is bringing greater protections to Pay by Bank payments. This will effectively provide a similar level of protection typically associated with cards, giving consumers yet another safe and secure payment option.