Open Banking adoption among small businesses continues to skyrocket in the UK, with Open Banking Limited (OBL) recently revealing that over 10 million consumers are using the technology to make payments.

The organisation said that the growth of Open Banking, which first launched in 2018, has been driven by competition, suggesting that engagement with the standard from businesses is encouraging their competitors to also adopt.

The number of Payment Initiation Service (PIS) users surged by 61 per cent in the past year, significantly outpacing the 27 per cent growth in Account Information Service (AIS) users.

As the adoption of Open Banking grows, retailers are compelled to adopt Open Banking to streamline operations, slash transaction fees, and deliver seamless customer experiences from browsing to checkout, the OBL said.

This accelerating adoption of Open Banking in online and mobile shopping is not only creating unprecedented opportunities in loyalty programs, payment systems, and marketing but is also imperative for enhancing security and stability.

This urgency was underpinned by Marion King, OBL chair and trustee, who said: “Consumer empowerment is core to Open Banking and it’s fantastic to see more and more people and small businesses take advantage of the financial opportunities open banking provides.

“From access to cost-effective credit, building a regular savings habit or making more informed financial decisions, Open Banking is delivering the means for millions of people to improve their financial wellbeing, delivering a true public good.”

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