NatWest introduces new open banking payment service

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t has been three years since the implementation of Open Banking in the UK. Since then, more and more banks have been embracing fintech partnerships in a way that has not been seen before.

The latest incumbent to offer a new open banking service is NatWest – in February the UK bank launched a new payment service that participating retailers can use without a debit or credit card.

The new online payments service, called Payit uses the Open Banking infrastructure, allowing customers of UK banks to pay for products and services offered by retailers who use the service.

This comes as open banking is set to become more mainstream in 2021. Since its inception, three years ago, the number of UK bank customers using open banking products has surpassed two million.

In addition, research conducted by Amex and YouGov shows that 41% of UK consumers have used an open banking payment in the past six months. This is surely a positive nod to the sector.

The move reiterates changing consumer attitudes – nowadays customers are becoming less and less patient when it comes to making payments.

An Amex survey shows that 78% consumers reported not completing a payment online due to issues like having to enter unnecessary additional information such as date of birth at checkout.

And this demand for cleaner payments has only accelerated due to Covid-19 – country lockdowns meant that the only way to shop was online. As a result, banks and online merchants had to adapt and expand their digital payment offerings quickly.

Despite big moves being made in open banking, it is still very much in its infancy. Now the industry must produce good consumer outcomes and drive competition.