JD Wetherspoon is going to make more use of Open Banking as a payment method across its huge network of UK pubs, via a partnership with one of the country’s biggest banks.
The pub operator has signed a deal with Payit by NatWest, the high-street banking group’s Open Banking provider. Payit will now be offered as a payment option at Wetherspoon pubs
Payit uses Open Banking to open a customer’s banking app and select the appropriate account, with no card deals stored by a third party to reduce the risk of online fraud.
Wetherspoons is a member of the FTSE250 Index and is listed on the London Stock Exchange, operating over 805 premises across the country.
The company’s partnership with NatWest demonstrates the continuing growth of Open Banking in the UK, which has been accelerating rapidly – a Payit survey of 150 UK businesses earlier this year found that 66% are familiar with the tech.
“This new partnership with one of the UK’s most recognisable brands is an exciting move for Payit by NatWest,” said Mark Brant, NatWest Group Chief Payments Officer.
“It’s one that allows us to provide a company with an extensive consumer base a way to reduce the cost of taking payments. Ensuring the latest payment technology is available to as many consumers as possible is also one of our key ambitions as a business.
“The added security afforded by Open Banking technology reduces the risk of sensitive information, such as card details, falling into the wrong hands.”
Having emerged as a technology and practice in the past decade, Open Banking’s adoption has been accelerating significantly in the past couple of years. In the UK, both banking stakeholders and political leadership have been keen to see the country secure and maintain a leadership position in the space.
This goal was repeatedly noted by Conservative Party stakeholders during the party’s time in government, particularly seen by the launch of the Data Protection and Digital Innovation (DPDI) Bill into parliament.
Although the Conservatives lost the last general election to the Labour Party, the new government has also outlined a commitment to Open Banking. The party has recognised the growing role the tech is playing in British banking, and hopes to continue capitalising on it economically.
Against the backdrop of Open Banking’s rapid development and adoption, NatWest has been working to secure its own leadership within the space. The brand was launched in 2020, and by 2022 was processing £1bn in volume.