Moneyhub finds UK consumers ‘clearly ready’ for Open Banking payments

UK consumers have a “strong appetite” for payments delivered by Open Banking and variable recurring payments (VRPs), having begun to recognise the benefits, according to new research by Open Banking data and payments platform Moneyhub.

Its research, conducted among 2,009 UK consumers, revealed that 45% expressed feeling “comfortable” using Open Banking payments for regular bills, while 39% were confident in its use for large transactions.

In addition, 40% would like their banks to offer sweeping VRPs to “unlock intelligent payments”, which work by automating transfers between accounts.

Moneyhub said that while commercial VRPs present “a major opportunity” for businesses to offer more flexible and cost-effective payment options, delays in bank adoption are preventing businesses from leveraging these innovations.

It also pointed to the absence of a “competitive and consistent” framework, which is “stalling” economic growth and “hindering” new commercial models, putting the UK at risk of falling behind its European counterparts.

Moneyhub has called for “gaps” in Open Banking protections for consumers and merchants to be addressed.

Moneyhub’s chief commercial officer Dan Scholey

Dan Scholey, chief commercial officer at Moneyhub, said: “Consumers are clearly ready for the next evolution in payments, and businesses are eager to meet this demand.

“The increasing adoption of Open Banking demonstrates a real shift in how people want to manage their finances—seeking greater flexibility with intelligence, security, and control over their payments. However, delays in establishing a robust commercial VRP framework are holding back innovation and economic growth.”

He urged the industry to work together to remove these barriers.

“If we are to keep up with consumer expectations and global trends, financial institutions must work collaboratively with regulators to establish a competitive and consistent framework,” Scholey said.

“By doing so, we can create a payment ecosystem that not only benefits consumers and merchants but also fosters innovation and economic growth. Now is the time for banks and regulators to act to unlock the full potential of Open Banking.”

In January, the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) announced the creation of a new independent central operator to coordinate how VRPs are made, as part of the next steps for Open Banking in the UK.

In the same month, the PSR made a commitment to working closely with the FCA to take forward work on the overall framework for commercial Open Banking payments.

Further reading: Moneyhub supports Money Squirrel to make Open Banking accessible to UK SMEs