More than 11m payments were made using open banking technology last month, Open Banking Limited (OBL) has announced, more than double the same time last year.
Open banking payments in the UK have reached a significant milestone, surpassing 11.4m transactions in July 2023, according to OBL.
OBL, the organisation responsible for the implementation of open banking in the UK, said this reflects a 9.3 percent increase in total payments compared with June 2023.
Meanwhile, year-to-date data for 2023 shows that total payments have doubled over the same period last year, rising 102.4 percent.
“The strong and sustained growth in open banking payments underscores the rapid pace at which open banking is reshaping the financial and payments landscape,” said Marion King, chair and trustee of OBL.
King, who took up her role at the start of this year, added that this 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,” she said.
In July 2023, the number of active payment users reached 4.2m, which is a substantial 10.5 percent rise from June 2023 and a 68.2 percent increase from July 2022.
“It is fantastic to see how many consumers have benefited from Open Banking since the CMA’s Retail Banking Market Investigation Order was issued in 2017,” said Sarah Cardell, chief executive of the Competition and Markets Authority (CMA).
“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.”
What is driving the surge?
Among the key drivers of growth are single domestic payments, which recorded 10.5m transactions in July, according to OBL This marks an 8 percent increase from the previous month.
OBL said that this has been propelled by several use cases and events, including government payment solutions and the onboarding of leading UK financial institutions and investment platforms.
These institutions have introduced pay-by-bank options, allowing users to conveniently fund a wide variety of savings and investment (S&I) products.
Variable recurring payments (VRPs), which allow merchants to take payments of varying amounts from customers, also saw substantial growth, with 872,000 transactions in July. This represents a notable 28.7 percent increase on the previous month.
All-time data shows that single domestic payments have now reached 163.2m.
And, for the year-to-date, the growth has been more pronounced. Single domestic payments have surged to 65m. This is a significant increase of 95.6 percent compared with the same period last year.