Would OBeP be iDEAL for the UK Market? A Guide for the Decision-Makers

by Zilvinas Bareisis, December 7, 2010


eWise and VocaLink have announced a partnership to develop eWise payo, an Online Banking e-Payments (OBeP) solution, and they plan to launch it in the UK during 2011. This report explores the feasibility of such a solution in the UK.

The growth of e-commerce around the world has resulted in a proliferation of online payment methods. Cards remain the preferred online payment method in many countries; however, a number of markets around the world have adopted solutions which enable consumers to pay for goods and services online via their online banking facilities (e.g., iDEAL in the Netherlands).

In a new report, Would OBeP be iDEAL for the UK Market?, Celent explores the feasibility of OBeP in the UK, by first reviewing the market and then assessing OBeP using Celent’s proprietary framework to evaluate a new payment solution.

“OBeP can be a very attractive payment instrument for all major parties, including consumers, financial institutions and merchants,” says Zilvinas Bareisis, Senior Analyst with Celent’s Banking Group and author of the report. “In the UK, given the dominance of cards and, increasingly, PayPal, financial institutions hold the key to the success of eWise payo. Their consumer and merchant relationships and willingness to invest in shifting consumer payment habits will be crucial in creating the necessary network effects.”

The report is intended for anyone interested in:

  • The UK e-commerce and payments markets
  • A taxonomy and examples of various OBeP solutions around the world
  • Celent's new proprietary framework to evaluate a new payments solution
  • Application of this framework to evaluate OBeP and eWise payo
  • Advice to UK financial institutions considering payo adoption

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary




Digital Britain



The UK Payments Market



Paying Online in the UK



What’s Next for Banks?


Introducing OBeP


OPeP in the UK: Introducing payo


New Payment Solution Evaluation Framework


Applying the Framework to Evaluate payo



Would UK Consumers Get payo?



Would UK Consumers Use payo?



Would UK Merchants Accept payo?



Would UK Financial Institutions Offer payo?


Conclusion and Recommendations for Decision-Makers


Leveraging Celent’s Expertise



Analyst Access



Support for Financial Institutions



Support for Vendors


Related Celent Research


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