Payments in the World of UK Open Banking

I’ve held a number of discussions over recent weeks in regards to Open Banking and when doing online research never been able to pinpoint specific documents that provide the additional considerations and interpretations. Therefore I thought I would summarise my thoughts and allow my connections to either correct me or provide links to documents that do expound my thoughts and even provide more opportunities for insight and therefore consideration:

Is there a maximum amount for an Open Banking Payment?

From a discussion I had last week, it appears that there is a maximum limit of £10,000. Within this there has to be additional consideration around how Banks allow customers and customer segments to use online banking channels. Therefore the maximum amount would only apply if the banking channel offered by the bank for personal or business customers allowed it. If the channel for, say, personal customers, is £5,000 then this would be the maximum open banking payment that could be effected through that Bank

Is Open Banking B2B, B2C, P2P??

My understanding is that with the limit of £10,000 (see comments above) then any combination would be supported as long as the underlying account only required a single signature/authorisation. Hence Banks have been pushing for a number of years to move away from multiple signature accounts except where there is an effective implicit or explicit legal requirement to support such mandates (i.e. schools and trusts).

Whilst I believe a number of Banks in the UK that support multiple legal entities because of ring fencing then Open Banking would be perceived to be aimed at the ringfenced ‘retail’ entity rather than the entity outside of the ring fence where more complex account structures and mandate requirements prevail

Telephone: +44 (0) 7944547707 | Email: elioth@thepaymentbusiness.com

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