• Nicole Green, , VP of Product Strategy, Innovation and Policy at Yapily


• 11.07.2025 07:15 am
#OpenBanking #Trustmark

Open banking has made leaps forward in recent years. It currently accounts for over 31 million monthly payments, 13.3 million regular users and £4.1bn to the UK economy. But to level up and reach its full potential, we need to overcome the consumer knowledge gap about its core benefits.

A payment system lacking genuine choice

Our recent report revealed the extent to which consumers lack knowledge of the unique benefits open banking payments offer. Only 39% of consumers feel protected using it. For the majority of purchase price points, security is a priority, especially with unfamiliar brands. 

Consumers want to find a payment method with a lower fraud risk, but do not understand that open banking is already demonstrably safer than card payments due to secure customer authentication, the use of encrypted APIs, and not using card details. 58% say a lower fraud risk would encourage them to try a new payment method, showing the need to bridge the education gap.

Additionally, convenience is important for consumers, with 49% prioritising it above all else at low purchase values. This is where cVRP will be a game changer. It allows consumers to benefit from recurring payments and one-click checkout, but on their own terms. They can set payment limits, payment dates, and cancel at any time — a massive advantage over card-on-file and direct debit. cVRP bridges the convenience gap, particularly for sub-£100 purchases, offering superior security with the frictionless user experience consumers demand.

Merchants overwhelmingly prioritise lower fees and strong security, yet many feel trapped by expensive, opaque card schemes. The chargeback system is a major pain point; 49% want a more efficient process, and 41% want it scrapped. This administrative and financial burden is worsened by "friendly fraud," which nearly half of merchants want better protection against. These challenges need to be overcome with a protection model that doesn’t just replicate the model used for debit cards.

The risk of inaction

If open banking doesn’t deliver as a mainstream payment method, the consequences will be felt across the economy. Four key reforms could make the Chancellor’s National Payments Vision, launched last year, a reality. 

Develop a bespoke consumer protection model: Don’t just replicate what we have for cards. This must address critical issues, such as merchant insolvency.

Introduce a UK trustmark: Launch an instantly recognisable trustmark for open banking payments, like the one we have for contactless payments or direct debit.

Accelerate cVRP rollout: Introduce a consumer-friendly brand for Commercial Variable Recurring Payments (cVRP) this year.

Preserve low cost and high security: Progress open banking while safeguarding its core advantages of low fees and strong security, as these are its foundational value propositions.

For years, the UK has pioneered open banking - it would be a monumental waste to give up this chance to help businesses and consumers benefit from this pioneering technology.