Open Banking is happening now – behind the scenes
Since 2016 the UK has built the strongest platform globally for Open Banking payments. This innovative and bold transformation is already reducing the cost of accepting payments while delivering higher acceptance rates.
In May alone, businesses and consumers made more than five million Open Banking payments according to the Open Banking Implementation Entity (OBIE). This is part of a growing trend that is bringing Open Banking to the fore.
One particular example of Open Banking transforming UK payments is its integration to His Majesty’s Revenue & Customs (HMRC). Since 2021, customers have been able to pay taxes with Open Banking instead of cards or manual bank transfers. The HMRC use case provides a practical framework for other industries and sectors.
The UK faces an inflection point. The “fast-followers” are now preparing to offer Open Banking payments in light of conclusive success cases. Learning from developed bank payment markets such as Sweden, Finland and Norway, we can expect to see rapid adoption of Open Banking and account-to-account solutions to make everyday payments.
As a Swedish-based pioneer in Open Banking payments, Trustly has seen first-hand how quick the uptake can be. Our industry partnerships show the widespread intention of merchants to implement Open Banking within the next 12 months. This spreading enthusiasm will galvanise further adoption and improve understanding and appreciation of this solution.
The Open Banking transformation in the UK has been steadily growing since 2016. The benefits for consumers and merchants alike are clear to see. With all the pieces in place and the conditions now better than ever, we expect to see new milestones reached and previous achievements broken in 2023 and beyond.