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UK government issues tender to bring open banking to Gov.UK Pay

The UK government is inviting bidders for a £49 million contract to embed open banking technology into its Gov.UK Pay payments platform.

  4 2 comments

UK government issues tender to bring open banking to Gov.UK Pay

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Gov.UK Pay is used by central government, local authorities, police forces and NHS teams to take payments for their services digitally. Used by more than 1000 different public sector services, it has processed over 94 million transactions since 2016.

Following a request-for-information on the subject of a new supplier late last year, Government Digital Service (GDS) has now issued a market notice.

GDS is "seeking a payment service provider to underpin the Gov.UK Pay platform, specifically for processing credit and debit card payments and pay by bank (open banking) payments".

The contract, which has an estimated value of £49.2 million, is for an initial 36 month period from early July 2025, with two 12 month extension options.

The chosen PSP will have a 12-month onboarding period, before beginning service provision in 2026.

Currently, Gov.UK Pay uses Stripe for local authorities, police and government-owned charitable groups. For central government, arm’s length bodies and NHS payments, it uses Government Banking's PSP, Worldpay.

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Comments: (2)

Jeremy Light

Jeremy Light Co-founder at Fourdotzero

The request for a combined processor of pay-by-bank and cards is a growing trend, with some interesting dynamics.

Will open banking PISP aggregators partner with card acquirers, will they build/buy their own card capabilities or will there be mergers between the two? Often acquirers offer pay-by-bank services, but it is a side show compared to their card volumes and it is also a risk that may cannabalise higher margin card volumes - cards and pay-by-bank are uneasy bedfellows, no doubt AIS data insights will be used to differentiate deals.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Stripe and many other fintechs support not only credit card but pay-by-bank payments (via third party integrations) in India, USA, etc. So do many other electronic payment gateways, payment services providers and payments aggregators. In addition, there are payment orchestrators that carry out automatic routing across multiple ePGs based on least cost routing and lowest outage, etc. I'm guessing such fintechs are not common in UK since it seems to be a big deal for a single PSP to support multiple MOPs like credit card and pay-by-bank.  

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