How To Take Open-Banking Payments Mainstream
Where will the next growth wave come from, and is the ecosystem ready?
Open banking is already addressing a number of payment pains through lower fees and faster settlement times, but blockers to open-banking payments becoming ubiquitous exist and are less easily solved for.
As a key player in the space, GoCardless is seeing increasing demand for open-banking payments from its customers as well as businesses investing in ‘open-banking readiness’ ahead of new innovations.
Unlocking a wider set of use cases will bring huge benefits for both businesses and their customers. Which begs the question ‘Where will we see the next wave of merchant adoption?’
Inside the report
Open-banking payments are growing.
Open Banking has enabled a new payment system that offers benefits to both customers and merchants. Open-banking payments could become the primary way we pay in the UK.
Some sectors are adopting faster than others.
Open-banking payments are more compelling in some use cases than others. That’s driving merchants in some sectors to embrace open- banking payments far faster than others.
Open-banking payments will grow steadily.
As more customers and merchants adopt, open- banking payment volume will grow incrementally over the next five years. Faster growth will require action, starting with fully mandating VRPs.
The authors
Benjamin Ensor
A Fintech Insider regular, Benjamin has more than 20 years' experience advising global FS firms about customer behaviour, market dynamics, and the impact of digital technology on business strategy.
Frederick Lawley-Wakelin
Frederick has worked with multiple banks within the UK, Africa and Benelux region to generate and advise on the most promising opportunities across the fintech and decentralised finance landscapes.
Open banking is an innovative, interconnected and fast evolving landscape. We hope this research is insightful, provocative and contributes to a rich debate about the future of open banking adoption in the UK.Paul Stoddart
President, GoCardless
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