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UK Finance has set out recommendations for the future strategy of open banking payments in a new report. There are now over 2.5 million open banking payments a month compared to just 320,000 in the whole of 2018, and the recommendations in the report will help support the development of more products and services for consumers.
The key recommendations are:
There is growing use of open banking payments for e-commerce, and the development of Variable Recurring Payments (VRP) offers the potential to extend open banking to subscription payments in the future. This gives customers more choice about how they pay and an alternative to card-based payments, offering more competition in the market.
UK Finance recently supported a VRP Hackathon which demonstrated use cases for such open banking payments. For example, preventing children overspending on in-game purchases by pre-authorising expenditure, or helping SMEs collect payments faster.
Jana Mackintosh, Managing Director of Payments and Innovation at UK Finance, said:
The shared vision for open banking payments is to offer customers and merchants a greater choice in how payments are made and received. The recent VRP hackathon demonstrated new and innovative ways open banking payments could be used to make it easier to pay tax, make gaming payments, and shop online. Open banking has an exciting future, and the payments industry is working together to consider how the market could be enhanced for customers and merchants.
Chris Henderson, Head of Payments and Group Payment Strategy, Tesco Bank, said:
Open Banking payments are already working today for many millions of customers and it has the potential to be much more. This report shows how the industry can work together to develop the next phase for open banking for the benefit of customers and businesses.
<p style="text-align:justify; margin-bottom:11px">For more information please call the UK Finance press office on 020 7416 6750 or email <a href="mailto:press@ukfinance.org.uk"><span style="border:none windowtext 1.0pt; padding:0cm">press@ukfinance.org.uk</span></a></p> <p class="BodyTextNewCxSpMiddle" style="text-align:justify">UK Finance is the collective voice for the banking and finance industry.</p> <p class="BodyTextNewCxSpMiddle" style="text-align:justify">Representing around 300 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.</p> <p align="left" style="text-align:left; margin-bottom:11px">UK Finance has been considering these questions with its members, non-member firms including Payment Initiation Service Providers (PISPs), the Open Banking Implementation Entity (OBIE) and Pay.UK and other trade bodies (FDATA and the Emerging Payment Association). The Financial Conduct Authority (FCA) and Payment System Regulator (PSR) sat on the group as observers. We are grateful to<b> Chris Henderson</b> (Tesco Bank) who kindly chaired the working group. UK Finance provided the Secretariat.</p> <p class="BodyTextNewCxSpLast" style="text-align:justify">UK Finance with Ozone API and Open Future World, with sponsorship from Accenture, Mastercard, Volt and Worldpay/FIS supported the world?s first hackathon on variable recurring payments. For more details please look at <a href="http://www.vrphackathon.com">www.vrphackathon.com</a></p>
20.03.23
17.06.22
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