If you use GC you’ve probably had the same email as me about instant payments run through GoCardless using Open Banking.
I see this being a massive benefit for businesses, helping them be paid quicker. It’s basically a bank transfer but it pre-populates the sort code, account number and reference for you.
It’s for one off payments now, but given the GoCardless business model, I’d hazard a guess they’d look to expand this into recurring payments in the future too.
I’ve used Open Banking to fund my Revolut and Freetrade accounts. The recipient passes the necessary details (amount, destination sort code, account number, and payment reference) via Open Banking to your mobile banking app to initiate a Faster Payment. Your app launches on your mobile device, handles authentication, presents you with a summary of the transaction, for you to confirm. It’s super simple and a slick implementation of Payment Initiation.
I think open banking has opened quite a few doors, evident through apps like Yolt etc. But I’ve seen few implementations of the payment side of things. Not to say they don’t exist mind you!
I generally find them really painful, to be honest.
Recent experience: tried to top up my revolut account. Tried using the open banking transfer via our Barclays joint account. After going through the whole rigmarole on the Barclays end, revolut returned the payment, as it wasn’t from an account in my name (its a joint account).
Another one is paying off Lloyds banking group credit cards - you can use open banking to automatically initiate a manual payment to the card, starting in the relevant LBG app and getting transferred to the appropriate bank to complete the payment.
The quality of the implementation seems to really be dependant on the bank; some banks have much clunkier open banking portals than others.
And Tesco Bank credit cards as well, it seems. I noticed a screen advertising paying by bank app when I set up my Tesco mobile banking this afternoon. And as per their FAQs:
