What Is Open Banking Payments and Why Invoicr Uses It
Open banking payments let your clients transfer money directly from their bank account to yours without using a card processor. Invoicr by MRVL uses UK open banking as its core payment method, which cuts your payment costs from around 2.5% per transaction to a flat low fee.
Open Banking Payments Defined
Open banking payments is a system where a customer authorises their bank to send money directly to a business's bank account. The customer approves the transaction within their own banking app; no card details change hands. In the UK, this happens through regulated payment service providers that connect to the Open Banking Standard. For freelancers and tradespeople, the benefit is clear: lower fees. Card processors typically take 2.2% to 2.5% of the transaction value. Open banking payments cost a flat fee per transaction, often £0.20 to £0.50, regardless of invoice size. On a £500 invoice, you keep an extra £8 to £10 compared to card payment.
Why Open Banking Matters for Invoicing
If you invoice clients regularly, payment fees compound fast. A plumber sending out ten £400 invoices per month loses £88 to card fees alone. Open banking cuts that to roughly £40. Invoicr is built around this principle: your clients receive an invoice, tap a secure link, and authorise payment from their banking app. The money lands in your account within hours, not days. No chargebacks. No card disputes. No percentage cut. For UK sole traders, this is a material difference to monthly cash flow and profitability.
How Invoicr Implements Open Banking
Invoicr uses UK regulated open banking providers to process payments. When you send an invoice through Invoicr, the client gets a payment link. They tap it, select their bank, log in securely, and confirm the amount. The transaction is processed through open banking, and you're charged a small flat fee instead of a percentage. The whole flow takes under two minutes and happens on the client's phone. Invoicr's Free tier includes bank-to-bank payments on up to 5 invoices per month. Pro and Business tiers unlock unlimited invoices, payment reminders, and additional features like WhatsApp invoice delivery and VAT compliance tools.
Open Banking vs Card Payments
Card payments (Visa, Mastercard) route through a processor who takes a cut. Open banking skips that middleman. Open banking transactions are also more secure for small businesses because they're authorised at the bank level, not through a third-party payment gateway. The trade-off is that open banking works only within the UK banking system and requires the client to have online banking access. Card payments are universal but expensive. For UK tradespeople and freelancers working with UK clients, open banking almost always wins on cost and speed.
Who Benefits Most from Open Banking Invoicing
Sole traders, plumbers, electricians, gardeners, decorators, handymen, mobile mechanics, and small consultants benefit most. These trades often invoice multiple clients monthly and need the invoices paid fast. A £500 invoice via Invoicr costs roughly £4 in fees instead of £12.50 via card. Over a year, that's hundreds of pounds back in your pocket. Invoicr is purpose-built for this audience and available on iOS and Android, so you can create and send invoices from your phone at the job site.
Getting Started with Open Banking Invoicing
To use Invoicr's open banking payments, download the app, create a free account, and add your bank details. On the Free plan, you can send 5 invoices per month to 3 customers at no cost. Upgrade to Pro (£9.99 per month or £79.99 per year) for unlimited invoices, automated payment reminders, and WhatsApp delivery. The Business plan (£19.99 per month or £179.99 per year) adds 5 team seats, VAT and CIS compliance, and accountant-friendly export. All plans include open banking payments; you pay the same flat fee regardless of invoice size.
Start invoicing your UK clients with bank-to-bank payments today.
Frequently asked questions
Is open banking payment safe?
Yes. Open banking transactions are authorised at the bank level using your client's own banking app, so they're more secure than entering card details on a third-party site. The payment service provider is UK regulated.
Can my client refuse an open banking payment?
Yes. Your client must actively approve the payment in their banking app. They see the invoice amount and your details before confirming. If they don't authorise it, no payment is taken.
How fast do open banking payments clear?
Most open banking payments clear within hours and are in your account by the next business day. This is faster than card payments, which can take 2 to 3 days.
What's the fee for open banking payments on Invoicr?
Invoicr charges a flat low fee per transaction, typically under £0.50. This beats card processors, which take 2.2% to 2.5% of the invoice amount.
Do all UK banks support open banking payments?
Major UK banks do. Your client needs to have online banking access. If they can't access open banking, they can pay by other methods (invoice details shared via email).
Can I use Invoicr if I'm not in the UK?
Invoicr is built specifically for UK sole traders and small businesses. Open banking payments work only within the UK banking system. If you're outside the UK, Invoicr is not a good fit.