There was a time when the biggest challenge facing Open Banking was awareness. Businesses needed to understand what it was, how it worked and whether there was value in investing in it. Today, Open Banking has more than proved its worth, with one in five UK consumers and businesses actively using Open Banking, and millions of payments being made through the technology every month. As adoption has grown, businesses have moved beyond asking whether Open Banking is right for them and are instead focusing on how to get the most from it.
That shift is reflected in our own research at Payit by NatWest. We found that 42% of UK businesses see improved security and fraud prevention as one of the biggest benefits of Open Banking, while almost a quarter spend more than six hours every month managing and storing customer payment information. Even more recently, our latest research also found that almost all (99%) utilities and telecoms businesses continue to experience payment disruptions, showing there is still significant room for improvement when it comes to modernising payment journeys.
Businesses are no longer asking whether they should explore Open Banking. They’re asking which provider is best placed to support them as they scale. As the market matures, organisations are becoming more selective, looking beyond functionality to consider trust, resilience, long-term stability and the quality of support they’ll receive.
Open Banking has reached an important milestone. The next phase won’t be defined by who entered the market first. It will be defined by who businesses trust to grow with them.
Simplicity is driving the next wave of adoption
One of the biggest lessons we’ve learnt over the past few years is that technology alone isn’t enough.
Open Banking only succeeds if customers actually use it. That means payment journeys need to be simple, intuitive and remove as much friction as possible. If customers have to stop and think about how to pay, you’ve already introduced unnecessary complexity.
The best Open Banking experiences feel effortless. Customers can make secure payments directly from their bank account in just a few clicks, while businesses benefit from faster settlements, fewer failed payments and a smoother customer experience.
The industry’s focus is now shifting from simply onboarding merchants to increasing customer adoption. Offering Open Banking as a payment option is only the starting point.
The real opportunity lies in designing payment journeys that customers actively choose because they’re quick, secure and easy to use.
Open Banking is becoming much more than payments
While payments remain at the heart of Open Banking, the conversation has broadened considerably.
Businesses are increasingly exploring how consented financial data can improve affordability checks, onboarding, lending decisions and support for customers who may be struggling financially. Areas such as digital identity, smart data and Variable Recurring Payments (VRPs) are opening up new opportunities that go far beyond a single transaction.
Merchants are also looking beyond payment initiation. Reporting, refunds and deeper customer insights are becoming just as important in helping businesses improve operational efficiency and deliver better customer experiences.
This next phase of Open Banking is about combining payments and data to solve real business challenges.
Trust has become a competitive advantage
As Open Banking becomes more established, the conversation is naturally shifting. Businesses are no longer just asking whether Open Banking is right for them – they’re asking which provider is best placed to support them for the long term.
Innovation will always matter, but so will resilience, financial stability and long-term investment. Businesses want confidence that the provider they choose today will continue to support them tomorrow.
This is where having the backing of a trusted bank makes a real difference.
For example, Payit combines the agility and innovation of a fintech with the scale, security and resilience of NatWest. Working with a trusted, regulated financial institution also gives businesses reassurance that, throughout the payment journey, money is moving securely between regulated accounts, helping to build confidence for both businesses and their customers.
Beyond the technology itself, businesses increasingly value expert support. As Open Banking evolves, organisations want partners who can help optimise customer journeys, respond to changing market needs and maximise long-term adoption, rather than simply providing the technology.
Looking ahead
The payments landscape continues to evolve rapidly. Cards, account-to-account payments and emerging technologies are developing side by side, while innovations such as digital identity, smart data and AI financial journeys are creating new opportunities for both businesses and consumers.
After more than five years in market, we’ve seen Open Banking move from an emerging innovation to an established part of the UK’s payments ecosystem.
The next chapter isn’t about convincing businesses to adopt Open Banking. It’s about helping them choose the right long-term partner – one that combines innovation with trust, resilience and the expertise to support them as the market continues to mature.
James Hodgson, chief executive of Payit by NatWest
“Open Banking has grown up – now businesses are choosing who they trust” was originally created and published by Retail Banker International, a GlobalData owned brand.
