Under lockdown open banking payments surged 800%
Customers who hold traditional bank accounts accounted for 88 per cent of the growth, with challenger bank users accounting for the remaining 12 per cent.
Payment Initiation (PI), a core part of open banking, saw a more than eight-fold (832 per cent) increase in users pay for shopping online during lockdown, according to financial API provider TrueLayer.
PI is a new form of online payment enabled under the EU Open Banking Directive PSD2 and allows customers to make payments directly through online banking.
Interestingly, customers who used a traditional bank to complete an open banking-supported transaction accounted for 88 per cent of the growth, between March and July 2020, while challenger bank customers accounted for the other 12 per cent.
A trend that TrueLayer puts down to “an increasing broader acceptance of PI beyond then more technologically progressive neobanks.”
Shefali Roy, COO and CCO of TrueLayer, said: “These statistics reveal that even during a crisis people are willing to quickly embrace technological innovation if they believe it makes their life better or more convenient.”
“Perhaps the most interesting result our analyses revealed is that growth has not dropped off - meaning that those who began using Payment Initiation during lockdown are continuing to do so after restrictions were eased.”
According to the fintech, it was seeing steady growth of around 43 per cent per month prior to the outbreak of coronavirus, a figure that jumped to 460 per cent in March as more people shifted to remote working.
At the beginning of June, TrueLayer struck a deal with the UK government to enable the fintech to provide public sector organisations with its PI services.