Moneyhub research: 1 in 5 now using Open Banking payments

Wednesday 8 November 2023 08:52 CET | News

Data and payments platform Moneyhub has revealed that one in five Brits are regularly making payments via Open Banking (21%), according to its research.


Open Banking payments allow users to make a payment directly through their phone’s banking app or online banking account directly to another account, which can be a quicker and more cost-effective alternative to other payment options such as card payments, standing orders, or direct debits.

 Moneyhub has revealed that one in five Brits are regularly making payments via Open Banking (21%), according to its research.

Cards still dominate the payments landscape

While cards remain the dominant payment method on the high street and online, businesses are exploring alternative options for their customers, often triggered by high acquiring costs and settlement delays which are impacting cashflow.

The stranglehold that direct debits overwhelmingly have in the regular bill payment sector (where 70% of Brits use this payment method for their regular bills) will be challenged as Open Banking’s variable recurring payments become an option.

The rise of Open Banking payments

Open Banking payments are increasing in prevalence and relevance. Indeed, Moneyhub’s research comes following figures showing that Open Banking payments hit a milestone earlier in 2023, hitting 11.78 million transactions in September 2023, with the number of active payment users surging by 68.2% in July 2023 compared to the same month in 2022.

This alternative payment method is increasingly being used by the younger generations with 29% of 16-24 year olds and 26% of 25-34 year olds making payments using Open Banking. In comparison, just 13% of those aged over 55 years old use Open Banking payments. Moreover, close to half of those that classed themselves as full time students (44%) are using Open Banking to make regular bill payments.

Officials from Moneyhub Open Banking is revolutionising the world of payments, shaking up traditional methods like cheques and cash. Direct debits and standing orders gained popularity before, but Open Banking offers quicker, more efficient, and flexible payment options. It is cost-effective for both merchants and customers, leading a new generation of consumers to embrace it. Early adopters are seeking diverse and innovative payment solutions, breaking away from their parents' or grandparents' methods.

Research methodology

Research conducted by Censuswide among 2000 nationally representative consumers. The research fieldwork took place between 29 September to 3 October 2023. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.

What does Moneyhub do?

Moneyhub is a data, intelligence, and payments company which develops ISO 27001 certified software for Open Banking, Open Finance, and Open Data applications. Its FCA-regulated Open Data platform enables companies to quickly and easily transform data into personalised digital experiences and initiate payments. Its APIs and fully customisable platform provide data aggregation, insights, notification nudges, and payment systems. As a result, clients have the consent-driven data and analytics they need to create super-personalised offers, products, and services.

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Keywords: Open Banking, account-to-account payment, payment methods, research, API, data
Categories: Banking & Fintech
Companies: Moneyhub
Countries: United Kingdom
This article is part of category

Banking & Fintech


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