Specifically, Government is set to explore the integration of Open Banking within GOV.UK Pay later in 2023 as part of its ongoing efforts to enhance digital service offerings.
Presently, GOV.UK Pay already supports payment options such as Apple Pay and Google Pay for central government digital services. The platform has also introduced a ‘Recurring Card Payments’ feature in collaboration with Kent County Council, with plans to extend this functionality to other public services. This move enables residents to securely store their payment details for seamless recurring payments.
Representatives from the Digital Service Platforms at the Government Digital Service highlighted upcoming advancements in mobile wallet payment options. They also revealed that these enhancements will soon be extended to local authority services, simplifying payment processes for individuals seeking to access government services remotely.
Officials further emphasised that the implementation of Open Banking within GOV.UK Pay will offer individuals the convenience of utilising their personal banking apps for streamlined service payments. This move aligns with HMRC’s existing utilization of Open Banking technology for the collection of self-assessment tax payments.
In a notable development, HMRC had previously integrated Ecospend’s ‘Pay by Bank’ technology in 2021, marking a significant milestone as the first instance of an Open Banking payment method being integrated into a government department’s systems.
A recent blog post from one of the aforementioned officials underlined the commitment to enhancing digital products based on user requirements, a principle applicable even to established platforms such as GOV.UK Pay, GOV.UK Notify, and GOV.UK Design System. Moreover, GOV.UK Notify is anticipated to introduce attachments and QR codes to letters, facilitating enhanced communication between government services and citizens.
The state of Open Banking in the UK
According to a report by ukfinance.org.uk, the UK has a world-leading Open Banking infrastructure. There are now over one million Open Banking payments a month and an increasing number of major UK merchants now offer Open Banking payments as a way to pay.
The use of Open Banking payments is increasing and is now being seen as a way to introduce more competition into the payments market, particularly in relation to retail payments. One area that remains undeveloped by Open Banking payments is the ability to make regular/recurring payments where the amount and timing of the payment can vary. These types of payments are often made in respect of subscriptions, digital content and utilities (water, gas, electricity).
