UK Government publishes GBP 49 million tender to include Open Banking into Gov.UK Pay

Aiming to optimise public sector payments, the UK Government intends to open bidding for a contract that enables it to embed Open Banking into its Gov.UK Pay platform. The tool is leveraged by central government, local authorities, police forces, and NHS teams to digitally accept payments for their services. Currently utilised by over 1000 different public sector services, the platform processed more than 94 million transactions since its inception in 2016.

Augmenting payments in the UK

The Government Digital Service (GDS) announced the initiative on 19 February 2025, with the move focusing on improving the digital payment experience for citizens interacting with public sector services. Gov.UK Pay now leverages the solutions of traditional payment service providers (PSPs), including Worldpay and Stripe, to manage card payments. However, the contract looks for a provider that can integrate Pay by Bank Open Banking capabilities together with credit and debit card processing. Through this, users would be able to pay directly through their banking apps, in turn benefiting from a more optimised alternative that uses real-time payment rails.

Furthermore, the tender comes after 18 months of planning, assisted by GDS’s exploration of Open Banking in August 2023, when representatives underlined the potential capabilities of citizens to pay through their banking apps. This was followed by a request for information (RFI) in September 2024 in which the objectives were determined and further augmented. Currently, the Government put in place a deadline for the tender, with initial qualifications due by 19 March 2025 and final proposals to be sent by 2 May 2025.

After winning the bidding process, the selected company is set to have to ensure continuous availability for over 750 public sector services, with a 12-month onboarding period targeting full-service beginning in 2026. By implementing this transition period, the Government intends to diminish administrative complexities, minimise costs, and maintain the platform’s intuitive and user-friendly interface.