UK’s July was a record month for open banking payments

The United Kingdom has seen a significant increase in the number of open payments over the course of the last month. New data shows that 11.4 million open banking payments were made in July 2023 alone, which is 9% more than in June of this year.

Furthermore, YTD data indicates that in 2023, the total number of payments has more than doubled than what was seen during the same period in 2022. July numbers have particularly stressed this, as the number of active payment users reached 4.2 million. Compared to June, this is a 10.5% increase, and compared to July 2022, the figure is higher by a staggering 68.2%.

Why is the UK seeing a surge in payments?

While the change in monthly figures could be affected by multiple factors, some of the key drivers are believed to be single domestic payments. Reports have recorded 10.5 million transactions last month, which is 8% higher than the month before.

During this time, the local government introduced new payment solutions and onboarded several investment platforms and financial institutions. Specifically, the institutions have introduced the option that allows their customers to pay by bank. This opened doors to a variety of investment and savings products, and the UK users jumped at the opportunity to interact with them.

Open banking transactions’ use cases increased, and by volume, the top three of them ended up being account top-ups, credit card bill payments, and e-commerce. The data also shows that variable recurring payments have also seen considerable growth during this time. For example, there have been 872,000 transactions in July 2023, representing a 28.7% increase compared to June.

Open banking is transforming the UK’s money management

Open Banking Limited’s chair and trustee, Marion King, commented on the new date, saying that the strong and sustained growth in open banking payments indicates that open banking is reshaping the financial and payments landscape at a rapid pace in the United Kingdom.

He also added that this reinforces the pivotal role that open banking plays in pushing financial inclusion forward. In addition to this, open banking also delivers consumer empowerment, innovation, and other advantages that are growing in demand.

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

Sarah Cardell, the CEO of the Competition and Markets Authority, also commented on the new development, saying that it is fantastic to see consumers benefitting from open banking ever since the CMA’s retail banking market investigation order was issued in 2017. Since then, open banking helped transform millions of lives, allowing people to manage their money in a much more beneficial way easily.

The new data confirms that the Brits enjoy the new possibilities, and the figures will likely continue to rise in the coming months.