The UK has long been at the forefront of open banking adoption, serving as a global benchmark for innovation in real-time payments and financial data sharing. A strong regulatory framework, widespread bank connectivity, and a vibrant fintech ecosystem have made the UK one of the most advanced and mature open banking markets in the world. While payment volumes continue to rise and consumer engagement deepens, recent data points to a slight easing in the pace of growth which we explore in this infographic.
1. UK Open Banking Payment Transactions
(in mil. transactions; % year-on-year change; January 2021 to August 2025)
2. Reaction from Merchant Users: Benefits & Drawbacks
(select key observations and merchant interview quotes)
Select Key Observations
- Open banking payments in the UK have recently entered a period of slowing growth, with transaction volumes plateauing for four consecutive months between March and June, an early sign that mainstream adoption may be slowing.
- This slower pace of growth may spur innovation in value-added services with one of the key drivers of future momentum potentially being recurring payments or VRP initiative that is expected to expand open banking use cases and merchant acceptance.
- Looking ahead, open banking payments have the potential to become a meaningful share of merchant payment acceptance. To achieve this, the ecosystem will need clearer commercial incentives, continued improvements in reliability and consumer UX and trust, and successful scaling of VRP solutions and other value-added use cases.
Please do not hesitate to contact Yuriy Kostenko at Yuriy@FlagshipAP.com with comments and questions.