How to Boost Shopify Conversions by Reducing Checkout Friction with Open Banking

If there’s one place where revenue quietly slips through a Shopify store’s fingers, it’s checkout. Cart abandonment across e-commerce still hovers above 70%, and a surprising chunk of that loss happens after customers have already decided they want the product. They add items, head to checkout… and drop off at the very last hurdle.

Why?

A mix of slow forms, surprise fees, security worries, and, increasingly, payment friction. Traditional card rails simply weren’t built for mobile-first shopping, and UK shoppers have become far less patient with long card forms, 3D secure hoops, and declined transactions. Pay by Bank (open banking) is the one change in particular that has transformed Shopify performance for UK businesses.

Open banking hasn’t arrived to replace your entire checkout. It has arrived to fix the bottlenecks. Let’s find out more about it. 

Why checkout friction still kills Shopify conversions

Marketers spend fortunes perfecting ads and product pages, but checkout often stays untouched because it “already works.” Except… it doesn’t.

Common friction points on Shopify:

• Long forms → too much typing on mobile
  
  
• Card authentication failures
  
  
• Unexpected fees at the final step
  
  
• Limited payment options
  
  
• Slow settlement holding up cash flow
  
  
• Chargebacks (and the admin nightmare that comes with them)

These tiny blockers add up. They make a customer hesitate during the most sensitive moment of the journey — payment.

How open banking smooths the rough edges of checkout

Open banking removes half the steps of a card payment without removing security. It’s fast, it’s mobile-native, and it meets shoppers where they already are: in their banking app.

Why it works so well in Shopify checkout

• No card numbers, expiry dates, or CVVs required
  
  
• Customers authenticate using Face ID, fingerprint, or a secure bank login
  
  
• Payments are authorised directly by the bank → fewer failures
  
  
• No chargebacks
  
  
• Instant settlement improves cash flow

It’s the modern version of a “tap to pay” experience but inside Shopify.

The conversion boost: From friction to flow

A smooth checkout isn’t just pleasant; it measurably lifts conversions. And open banking specifically tackles the biggest abandonment reasons.

Where open banking makes the biggest difference

• Mobile conversions: removes typing entirely
  
  
• High-value baskets: fewer declines, higher trust
  
  
• B2B or high-volume brands: faster settlement, no surprise fees
  
  
• Shoppers wary of card fraud: bank-secured authentication

With Shopify’s checkout extensibility now limiting heavy customisation, open banking has become one of the most reliable ways to meaningfully improve conversion without touching the page layout itself.

Why UK shoppers respond so well to Pay by Bank

This isn’t a niche preference, it’s a genuine behaviour shift. UK mobile banking usage is at an all-time high, and rising fraud concerns are pushing people toward bank-authenticated payment flows they already trust. Open banking payments surged through 2024–25 as more merchants introduced them at checkout, normalising the experience. At the same time, shoppers are increasingly tired of long card forms and gravitate toward quicker, familiar journeys. When paying becomes as simple as opening your banking app and confirming, the hesitation that normally causes drop-off almost disappears.

Shopify use cases where Pay by Bank shines

• High-ticket retail (electronics, furniture, automotive accessories)
  
  
• Multi-chain retailers who need faster settlement
  
  
• Subscription or repeat-purchase brands
  
  
• Merchants with high transaction-fee sensitivity
  
  
• Businesses experiencing too many card failures

Wherever margins matter, open banking helps.

How Atoa can help 

Atoa gives Shopify businesses a fast, compliant open banking (Pay by Bank) option designed specifically for the UK market. The setup takes minutes, customers pay directly from their banking app, and businesses get faster settlement. Many UK stores now place Pay by Bank alongside Apple Pay and cards, not as a replacement, but as a smarter first option for customers who want the perfect combination of speed and security.

For merchants wanting predictable fees, fewer payment failures, and happier checkout journeys, Atoa’s Shopify integration is worth testing.

Practical ways to reduce checkout friction 

a. Reduce the effort

• Keep form fields minimal
  
  
• Enable address auto-complete
  
  
• Ensure mobile UX is clean and spacious
  
  
• Add guest checkout
  
  
• Use a clear, simple progress bar

b. Build instant trust

• Display familiar payment logos
  
  
• Highlight secure authentication (especially with Pay by Bank)
  
  
• Show refund and return clarity upfront

c. Give payment flexibility

• Apple Pay
  
  
• Google Pay
  
  
• Cards
  
  
• BNPL (where appropriate)
  
  
• Pay by Bank (open banking)

More choice = fewer exits.

Shopify-optimised checkout: What leading stores are getting right

If you look at high-performing Shopify brands, think gym-wear labels like Gymshark or fast-moving lifestyle brands that process thousands of mobile orders a day, their checkouts all share the same DNA. The payment step is simple, the interface is stripped of noise, and mobile users never have to pinch-zoom or type more than necessary. They surface multiple payment options without clutter, show total costs upfront, and keep the journey moving with clean layouts and fast-loading elements. This is why open banking fits effortlessly into their stack: it mirrors the same clarity and velocity, removing form-fill fatigue and failed card attempts by shifting the moment of payment directly into the customer’s trusted banking app.

Conclusion

Checkout is where revenue is made, not where it should fall apart. Open banking gives Shopify merchants a way to shrink the checkout journey, remove hesitation, and keep more carts moving toward conversion. For UK stores, especially those dealing with rising card fees, failed payments, and margin pressure, Pay by Bank is more than a new button at checkout. It’s a shift in how customers want to pay, and a shortcut to a cleaner, more confident checkout experience.

If Pay by Bank feels like the step your checkout has been missing, Atoa’s Shopify integration is the fastest way to try it. Book a demo with our UK-based today.  

FAQs 

Is open banking safe for Shopify payments?

Yes. Payments are authenticated directly through the customer’s own bank. No card details are stored or shared.

Do refunds work normally with Pay by Bank?

Yes, businesses can issue refunds directly in their payment dashboard.

Can open banking replace card payments completely?

Not yet, but it can become the primary option for mobile users, high-value baskets, and trust-conscious buyers.

Does Pay by Bank reduce checkout abandonment?

Yes. It removes long forms, reduces failed authorisations, and eliminates friction around payment security. This helps a customer breeze through checkout.