UK Open Banking payments top 11 million in July

Open Banking payments have doubled in a year, with more than 11.4 million payments processed in July 2023, buoyed by the introduction of ‘Pay by Bank’ options by the UK Government.

Open Banking Limited (OBL) reported that the 11.4 million payments recorded in July reflected a 9.3% increase in total payments compared with the previous month, while year-to-date data for 2023 versus 2022 showed total payments growth of 102.4%. It is the first month OBL has recorded more than 10 million Open Banking payments.

In July this year, the number of active payment users climbed to 4.2 million, an increase of 10.5% from June 2023, and up 68.2% compared to a year earlier.

OBL identified single domestic payments as the main driver of this growth, which rose 8% from June to reach 10.5 million transactions in July.

The organisation attributed the increased use of Open Banking payments to the adoption of Pay by Bank by government payments solutions, as well as the onboarding of UK financial institutions and investment platforms.

One of the largest savings organisations in the UK, NS&I, which is backed by HM Treasury, announced in June that it would begin offering customers an Open Banking-powered payment option, via Trustly-owned Ecospend.

Pay by Bank is being offered to NS&I’s online customers as a new option for making additional deposits when they log into their online account.

According to OBL, the top three use cases for Open Banking transactions in order of volume are account top-ups, credit card bill payments, and ecommerce.

Earlier this month, the UK Government confirmed that it will begin looking into how GOV.UK Pay might offer Open Banking later this year, as part of ongoing development and delivery of digital services.

All-time data revealed that single domestic payments have now reached 163.2 million, while year-to-date, single domestic payments surged to 65 million, meaning they have climbed 95.6% compared with the same period last year.

Marion King, chair and trustee of Open Banking Limited

Marion King, chair and trustee of Open Banking Limited, said: “The strong and sustained growth in Open Banking payments underscores the rapid pace at which Open Banking is reshaping the financial and payments landscape. It reinforces the pivotal role Open Banking plays in driving financial inclusion, innovation, and consumer empowerment.

“As Open Banking continues to redefine the way people manage their finances, the doubling of total payments in just one year is a remarkable achievement and testament to the transformative impact of Open Banking.”

Variable recurring payments also demonstrated growth in July, with 872,000 transactions during the month, representing a 28.7% increase on the previous month.

Sarah Cardell, chief executive officer of the Competition and Markets Authority, added: “Open Banking has transformed the way millions of people manage their money and today’s announcement is further evidence of the significant progress that has been made since 2017.”