UK Government Explores Open Banking for Digital Payments in Public Services

The UK Government is embarking on a journey to leverage the potential of open banking to facilitate digital payments within its public services, as reported  by Finextra News. Amanda Dahl, the deputy director of Government Digital Services, unveiled this initiative through a recent blog post, which sheds light on the broader strategy aimed at enhancing the functionality of government service payments.

One of the key components of this strategy involves the expansion of GOV.UK Pay—a platform already compatible with Apple Pay and Google Pay for central government digital services. The expansion seeks to incorporate local authority services, catering to individuals seeking the convenience of making on-the-go payments for government services, such as Clean Air Zone charges.

Highlighting the forthcoming adoption of a unified cross-government open banking platform, Dahl expressed, «Later this year, we’ll also be exploring the integration of open banking into GOV.UK Pay. This will provide individuals with the option to conveniently utilize their personal banking app for making service payments.»

Notably, the UK Government’s revenue and customs agency, HMRC, has played a pioneering role in driving the open banking revolution. Over the course of just a year, by January 2023, HMRC’s app facilitated the collection of an impressive £123 million in Self-Assessment payments from more than 94,000 taxpayers, since its launch in February 2022.

This move by the UK Government signals a step towards modernizing its payment systems and embracing the potential of open banking. As the digital landscape evolves, integrating open banking into government services holds the promise of more seamless and user-friendly experiences for citizens.