Image: Envato
One in five UK consumers and small businesses actively use these services, creating an ecosystem worth approximately £4.1 billion to the UK economy.
It’s a fintech-themed party as open banking in the UK is celebrating its eighth anniversary.
Launched on Jan. 13, 2018, Open Banking Limited said, “Open Banking has evolved from a regulatory initiative, instigated under the Competition and Markets Authority’s Retail Banking Market Investigation Order 2017, into a core part of the UK’s financial infrastructure, underpinning innovation, competition, and growth across payments, lending, money management and beyond.”
More than 16 million active users now benefit from open banking services, and OBL says in the announcement that they are supported by a growing ecosystem of 145 authorised third-party providers.
FCA figures from December reveal good momentum. Payment volumes have soared by 53% year-over-year, while Variable Recurring Payments—the technology that lets users authorize trusted parties to manage recurring transactions—now represent 16% of all open banking activity.
Back when open banking launched, skeptics questioned whether it would ever achieve mainstream adoption. Now one in five UK consumers and small businesses actively use these services, creating an ecosystem worth approximately £4.1 billion to the UK economy.
After a period of slower growth in 2023, open banking exploded back to life with 40-50% year-over-year growth rates. March 2025 alone saw 31 million open banking payments processed—numbers that seemed impossible just months earlier.
The transformation extends far beyond basic banking. Travel payments through open banking surged 230%, while e-commerce transactions grew 500%. Major companies are reporting adoption rates that validate this shift—Hargreaves Lansdown now processes 30% of its payments through open banking where available.
Consumer adoption has finally caught up. For the first time since launch, consumer usage has reached nearly identical levels to small business adoption, suggesting the technology has achieved the user-friendly experience needed for mass market appeal.
The regulatory environment is evolving to support this growth trajectory. Six weeks ago, analysis revealed the FCA has shifted to a data-driven, outcome-focused approach, while the government’s Financial Services Growth and Competitiveness Strategy from five months ago signals political backing for continued innovation.
The UK Payment Infrastructure scheme will launch its first live payments in early 2026, promising to further accelerate adoption. Meanwhile, three months ago the FCA announced plans to publish a comprehensive open finance roadmap by March, extending these capabilities far beyond traditional banking into insurance, investments, and other financial products.
International recognition continues to grow, with the UK’s open banking framework serving as a blueprint for 60 jurisdictions worldwide. This global influence positions the UK as a leader in financial innovation, even as competition intensifies from other markets.
Industry projections based on current growth patterns suggest this expansion is just the beginning. Analysts predict that one-quarter of all UK accounts will be open banking active by the first half of 2026—representing a fundamental shift in how consumers and businesses interact with financial services.
Open banking payments reached £12.9 billion in March alone, with projections suggesting this could double within the next two years as adoption accelerates.
Beyond the financial metrics, consumer attitudes reveal the deeper transformation underway. Research by Plaid shows 85% of consumers see benefits in pay-by-bank services, while 61% welcome AI-powered finance tools for budgeting and subscription management.
The UK’s eight-year journey from regulatory requirement to mainstream adoption represents one of the most successful fintech transformations in modern history.
PayPal’s venture capital arm is spearheading a substantial funding round for Klearly, a payments startup that helps businesses handle transactions.
