UK travel spending via Open Banking jumps 230% in 2025 so far
Open Banking in travel refers to the use of secure, account-to-account payment technology that allows customers to make payments directly from their bank accounts to travel businesses. This system leverages Open Banking protocols, which enable banks to securely share financial data with authorized third-party service providers, like travel agencies, airlines, or booking platforms.
The surge in Open Banking transactions within the travel industry highlights a shift toward more cost-efficient and secure payment solutions. This trend aligns with the broader evolution of fintech in travel, where businesses seek to optimize cash flow, reduce fraud risks, and minimize processing fees. Trustly, the global leader in Open Banking has revealed UK holidaymakers spent 230% more year-on-year on travel in January 2024 using the secure account-to-account payment technology.
January is often the most popular month to book holidays, with many businesses offering discounts at the start of the year. The research shows the growing use of Pay by Bank among both consumers and businesses in the industry.
The growth is based on Trustly’s transaction data from more than 250 travel businesses across Europe that now use its technology. Trustly’s technology has been adopted by some of the world’s largest travel firms including Booking.com, Etihad Airways, Norwegian Air, KLM, Wizz Air, Air France, and Stena Line.
Across Europe, using Pay by Bank to spend on travel has risen by 7% YoY in January. After the UK, the largest increase in spending of any European country has been in Germany, with 22% growth compared to the same month last year.
Using Open Banking at the checkout allows travel firms to benefit from lower processing fees, a reduction in chargebacks, and immediate settlement to improve cash flow.
Simon Eve, Vice President of Travel & E-Commerce at Trustly UK, said:
“Payments are particularly complicated in the travel industry, where delayed settlements are common and businesses face a higher fraud risk that drives up cost and increases operational challenges. To tackle this, airlines and hotel providers are now offering Open Banking payment options as well as traditional card payments.
“Open Banking creates multiple efficiencies for firms by reducing processing fees, cutting chargebacks, and allowing significantly faster settlement of payments to improve cashflow. As travel firms typically deal with high-value transactions and long settlement delays, they stand to gain significantly by adopting account-to-account payments. Our figures show this has resulted in an impressive increase in Open Banking transactions compared to previous years.”
Open Banking payments VS normal bank payments
The main difference between Open Banking payments and normal bank payments lies in how the payment process works and the level of access granted to third-party providers.
Here’s a table comparing Open Banking Payments and Normal Bank Payments:
| Feature | Normal Bank Payments | Open Banking Payments | Difference |
|---|---|---|---|
| Payment Process | Involves debit/credit card and card networks | Direct bank-to-bank transfer without cards | Open Banking eliminates the need for cards, reducing fees and delays. |
| Security and Access | Requires card details, vulnerable to fraud | Direct authorization from the bank via secure connections | Open Banking offers higher security with no card details shared. |
| Fees and Settlement | Higher transaction fees, slower settlements | Lower fees, faster payment settlements | Open Banking reduces fees and speeds up settlement times. |
| Customer Experience | Multiple steps for entering card info and authentication | Seamless payment via bank app/website | Open Banking provides a faster and smoother checkout experience. |
Final thoughts about Open Banking travel payments
The rapid adoption of Pay by Bank in the UK and Germany suggests that consumers are increasingly comfortable with alternative payment methods beyond traditional credit and debit cards. This shift could be further driven by regulatory support for Open Banking across Europe, fostering greater financial transparency and competition.
Additionally, the growing reliance on account-to-account payments coincides with trends in embedded finance, where travel platforms integrate financial services directly into their ecosystems. Companies like Booking.com and airlines leveraging Open Banking may soon expand into offering more fintech-driven services, such as travel insurance, buy-now-pay-later (BNPL) options, or dynamic pricing based on real-time transaction data.
As travel firms continue to digitalize, their payment strategies will likely become a key competitive differentiator. With the rise of AI-powered fraud detection, real-time cross-border payments, and an increasing demand for seamless checkout experiences, Open Banking’s role in travel is poised to expand beyond just payments, shaping the future of travel commerce as a whole.
