Open Banking Gambling Deposits Hit 12% Share in UK Market, Challenging Card Payment Dominance

Open banking payment methods have reached a 12% share of online gambling deposits in the UK market, according to Q4 2025 data from payment analytics firm CMSPI. The figure represents a near-tripling from the 4.3% share recorded at the end of 2023, driven by regulatory pressure on card payments and improving consumer familiarity with bank-to-bank transfer methods.

The UK's Confirmation of Payee system and Open Banking Standard have created the infrastructure for seamless bank-authorised payments, and several iGaming-focused open banking aggregators including PaySafe, Volt, and Token.io have built products specifically targeting the gambling vertical.

For operators, open banking deposits offer structural advantages: no card network fees (saving typically 1.2-1.8% on transaction value), instant settlement, native bank-level authentication meeting KYC requirements, and elimination of chargeback risk.

"The economics are compelling and the compliance benefits are real," said payments consultant Rachel Burnett. "The question for operators is whether they're willing to invest in the UX improvements needed to drive open banking adoption at the expense of familiar card payment flows."

Gamblers are the UK Gambling Commission's designated sensitive customer group for payment method restrictions, having faced voluntary credit card deposit bans since 2020.