Payments made through Open Banking soar during lockdown

Tuesday 25 August 2020 14:21 CET | News

TrueLayer, a provider of financial APIs, has recorded an eight-fold increase in consumers using Payment Initiation (PI) to pay for goods and services online during the lockdown.

According to the official press release, most of the growth (88%) was from people with bank accounts held at traditional financial institutions such as Lloyds or Barclays, with account holders at challenger banks such as Monzo and Revolut accounting for 12% of growth. This indicates an increasing broader acceptance of PI beyond the more technologically progressive users at neo banks.

PI is a new form of online payment enabled by the EU Open Banking Directive PSD2. It allows payments to be made directly via a customer’s online banking. Prior to the lockdown in the UK, TrueLayer had previously recorded a steady 43% month on month increase in PI adoption. In March 2020, use shot up 460% as many people began working from home or were furloughed.

So far, TrueLayer’s Payment API has been adopted by a range of companies including ANNA Money, Nutmeg, Revolut, and Stake. TrueLayer has also been approved by the UK’s Cabinet Office to provide its Payment API to Government departments enabling PI to be used within the public sector.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Open Banking, APIs, Pi, fintech, Anna Money, Nutmeg, Revolut, stake, TrueLayer, payments , banking, online banking
Categories: Banking & Fintech
Countries: Europe
This article is part of category

Banking & Fintech