Means residents can skip the credit card and use 'pay by bank' for local authorities and services
The UK government is increasingly seeking to optimize public payment infrastructure for efficiency, cost-effectiveness, and direct access to banking rails amid growing global trends towards 'pay by bank' systems.
This move signifies a strategic pivot by a major government towards 'pay by bank' solutions, potentially disintermediating card networks and traditional payment processors for public services globally.
The UK public will now have direct bank payment options for government services, reducing reliance on credit cards and payment intermediaries, leading to potential cost savings for the government and greater user choice.
- · Open Banking payment providers
- · Local authorities and government services
- · UK residents (cost savings/convenience)
- · Stripe
- · Credit card companies
- · Traditional payment processors
Increased adoption of 'pay by bank' methods across other government services and potentially the private sector in the UK.
Other nations may follow the UK's lead, accelerating the global shift towards direct bank payments and open banking infrastructure.
Long-term erosion of dominance for card networks and payment gateways in markets where governments actively support and adopt direct bank payment rails.
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Read at The Register