Is Apple Pay open banking?
No — Apple Pay is not open banking. Apple Pay is a digital wallet service that tokenises your debit or credit card and processes payments through existing card networks (Visa, Mastercard, Amex). Open banking, by contrast, uses direct bank account APIs to initiate payments without a card network. The two systems are technically distinct: Apple Pay replaces card details; open banking replaces the card entirely.
What is the difference between Apple Pay and open banking payments?
Apple Pay stores a tokenised version of your debit or credit card and uses NFC technology for contactless payments — the underlying transaction still runs on a card network and incurs interchange fees for the merchant. Open banking payments bypass card networks entirely, sending money directly from your bank account to the merchant via Faster Payments. Open banking payments are cheaper for merchants but currently less widely accepted than Apple Pay at point of sale.
Can open banking and Apple Pay be used together?
They serve different use cases and are generally used separately rather than together. Apple Pay is excellent for in-store contactless and online card payments where speed and ubiquity matter. Open banking payments are typically used for online checkout, recurring payments, and lending applications where bank transfer is offered as an alternative to card. Some payment platforms are exploring combining Apple Pay’s authentication experience with open banking’s bank-to-bank payment rails.
Open Banking in Practice: The UK’s open banking payment infrastructure is regulated by the FCA under the PISP framework. Apple Pay is regulated differently — as a technology facilitating card payments rather than as a payment initiation service in its own right. As variable recurring payments (VRPs) expand under the JROC’s roadmap, open banking may begin to compete more directly with Apple Pay for repeat purchases. Read more about open banking and digital payments on openfuture.world.
FAQ
Is paying with Apple Pay the same as a bank transfer?
No — Apple Pay processes payments through card networks, not directly from your bank account; open banking payments are the direct bank transfer equivalent.
Is Apple Pay safer than open banking?
Both are considered secure; Apple Pay uses device-based tokenisation, while open banking uses bank authentication — neither shares your full card or account details with merchants.
Will open banking replace Apple Pay in the UK?
Not in the near term — Apple Pay is deeply embedded in contactless payments; open banking is expanding as a complementary checkout option, particularly for online and subscription payments.