How do you pay using open banking?
To pay using open banking, select Pay by Bank or Bank Transfer at checkout. You will be redirected to your bank’s authentication screen — either in-app or via your browser — where you confirm the payment using your usual login or biometric authentication. The payment is then sent via Faster Payments directly from your bank account, typically arriving within seconds. No card details are required.
Which UK services and websites accept open banking payments?
Open banking payments are accepted by a growing number of UK businesses, including investment platforms (Trading 212, Freetrade), lenders (Creditspring, Koyo), utility providers, and e-commerce sites. They are also used for Direct Debit replacement by firms using GoCardless Instant Bank Pay. HMRC now accepts self-assessment tax payments via open banking through selected providers, and several government services are exploring the option.
How long does an open banking payment take to process?
Open banking payments use Faster Payments infrastructure and typically arrive within seconds, available 24 hours a day, 7 days a week. In rare cases — such as first-time payees or large amounts — some banks may apply additional checks that delay the payment by up to two hours. Open banking payments are generally faster than card payments for merchants, as funds are received immediately rather than waiting for card settlement (which can take 1 to 3 days).
Open Banking in Practice: Open banking payments in the UK are regulated by the FCA under the PISP framework within the Payment Services Regulations 2017. The PSR oversees the Faster Payments infrastructure that underpins them. Unlike card payments, open banking payments do not incur interchange fees, making them significantly cheaper for merchants. The JROC’s 2023 roadmap identifies expanding open banking payment use cases as a priority. Read more on openfuture.world.
FAQ
Is open banking payment the same as a bank transfer?
Yes — open banking payments are bank transfers initiated via a third-party app; the underlying payment rail is Faster Payments, the same as a standard bank transfer.
Can I get a refund on an open banking payment?
Refunds on open banking payments are processed by the merchant, not the bank; if fraud is involved, the PSR’s APP fraud reimbursement scheme may apply.
Do I need to share my bank account details to use open banking payments?
No — open banking payments use a token-based system; your account number and sort code are never seen by the merchant.