According to previous reports, apart from displaying UK users’ current account balances from their banks, the new app integration will also show a history of deposits and payments. Moreover, when using Apple Pay to make a purchase, the balances will be displayed inline. This capability is anticipated to help customers be more financially aware of whether they can responsibly afford a purchase.
The integration will initially be included as part of the upcoming iOS 17.1 developer beta, and it will solely be available to a subset of Wallet app users in the UK – provided they have an Apple Pay card associated with an affiliated bank. The financial institutions supported in the initial rollout include Barclays, HSBC, Lloyds, RBS, Monzo, and Starling.
As per previous reports, users can authorise the integration through the Wallet app, by using a familiar OAuth flow. This will prompt the Wallet to redirect the user to the bank’s app or website to authenticate the connection.
Security-wise, Apple’s privacy standards are applicable, and any data retrieved from the API is reportedly only kept on the user’s device and not stored on Apple’s servers.
The launch of this new feature for Apple’s UK users is purportedly a rare reverse, as most times international Apple users get fewer such capabilities. However, the introduction of this offering – which is only available to UK customers – was made possible by the UK’s existent interoperable Open Banking standard. As the US lacks such a standard, the possibility of implementing such a feature seems less certain.
The UK is currently in the lead when it comes to the Open Banking infrastructure that it extends, with reportedly over one million Open Banking payments being made each month. Additionally, a growing number of major UK merchants are currently providing Open Banking payment options to their customers.
According to experts, the success of Open Banking in the UK has to be, at least in part, attributed to the Open Banking Implementation Entity (OBIE)’s role as the central entity coordinating its implementation.
As the shift towards a digital economy is becoming clearer, the EU has started to introduce new regulatory frameworks such as the Payment Services Regulation (PSR) and the revised Payment Services Directive (PSD3). The changes that the regulations impose represent a step towards a new facet of Open Banking in Europe, with a primary emphasis on high-quality APIs.
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