UK open banking began in 2017 when the CMA ordered nine major banks (the CMA9) to open their APIs, and it is now a world-leading example, with more than 10 million users under FCA oversight and Open Banking Limited's standards. When a consumer approves a payment in their own bank app without a card, funds are transferred immediately via Faster Payments, so merchant adoption is growing as a card-network-fee-free, chargeback-free alternative path.

The cost advantage of open banking payments is especially large for high-value purchases (furniture, flights, tuition), industries with heavy card fee burdens, or services that top up account balances. Rather than a single national brand like the Netherlands' iDEAL, this is a market where multiple providers share the same infrastructure, so this page walks through what to consider based on the common structure. For payments that span multiple European countries through a broader transfer network, refer to the Pay by Bank (Europe) page.

When a consumer selects bank transfer payment at checkout and picks their bank, they are redirected to their own bank app and approve the payment with biometric authentication or similar. Because funds are transferred immediately via Faster Payments upon approval, non-payment risk is low, and since no card number is entered, there is less exposure to data leakage. This bank-app authentication itself is the way UK-SCA (Strong Customer Authentication) requirements are met. Hecto Financial collects the transferred funds in GBP.

Through Hecto Financial, a Korean merchant can consider open-banking-based transfer payments without signing individual contracts with UK banks. Supported bank coverage, the payment UX (redirect method), and fee terms vary by integration configuration, so confirmation before signing a contract is required.

• Business registration country

  Confirm whether a contract is available on the basis of a Korean business registration

• Sales channels

  The integration method and priority vary depending on your online sales channel mix — owned storefront, marketplaces, mobile app, and so on

• Product categories

  Check in advance whether your product category falls under restricted industries per the Open Banking operator's merchant policy

• UK regulatory check

  UK open banking runs on the UK's own framework — CMA orders and FCA oversight — rather than the EU's PSD2. Confirm whether your service provider is FCA-registered

GBP funds coming in via bank transfer are confirmed quickly given the instant-transfer nature of the method; Hecto Financial collects them and, after currency conversion, settles them to the Korean merchant in the contracted currency (USD, KRW, or JPY). Unlike cards, bank transfer methods have no chargeback system, so non-payment risk is low, but conversely, refunds require the merchant to actively initiate a return transfer. Be sure to have a refund process in place in advance to handle UK consumers exercising their 14-day right of cancellation.

• UK Financial Conduct Authority (FCA) / Bank of EnglandOfficial information on the UK payment system and regulatory oversight. If this page's content differs from actual regulations, the official source takes precedence.