What is Open Banking with August?

August lets you pay and receive rent in the app thanks to open banking. It’s a relatively new financial service, so not everyone knows exactly what it is or how it works.

In this guide, we’ll answer all your questions about how payments work within August. This includes a quick introduction to what open banking is, how it keeps your money safe, and how August uses it to simplify rent payments.

What is Open Banking?

Open banking is a service which lets you securely share your banking and other financial data with banks, third-party financial services and apps.

As long as you provide explicit permission, your bank can share things like your account details, savings statements and regular payments with authorised providers like August. 

Are payments safe with August?

The open banking technology used by August is fully regulated. Your data can only be shared between UK-regulated financial service providers, all of whom must comply with strict data protection rules.

August uses payment technology provided by Plaid Financial Ltd, an authorised payment institution regulated by the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017 for the provision of payment services. You can see the full list of regulated providers, including Plaid Financial Ltd, here.

August will never ask you to give access to bank login details or passwords; all payments happen directly within your banking app.

Which banks can connect to August? 

All of the UK’s largest banks and building societies can connect to August for payments via open banking, including Barclays, HSBC, Lloyds Bank, NatWest and Santander. Digital-only neobanks, such as Monzo, Revolut and Starling Bank, can also be used.

The list of providers is constantly growing, and you can check if your bank is on it here. 

Using open banking with August 

August is a type of service provider called a Payment Initiation Service Provider (PISP). This basically means that instead of you having to go through a traditional process – like manually entering your card details or transferring money through your bank app – August securely connects to your bank on your behalf.

Here’s how it works:

• Initiating Payment: When a tenant is ready to pay rent, August asks for permission to connect to their bank account. The tenant gives the go-ahead, and August handles the rest.

• Direct Bank Transfer: With the tenant’s explicit permission, August accesses their bank and initiates a payment directly from the account. No middlemen (like card networks) are involved, so the money moves directly from the tenant’s bank to the landlord’s account.

• Faster and Secure: Since the process happens directly between the tenant’s bank and the landlord’s, payments are often faster. Plus, it’s more secure because there’s no need to share sensitive information (like card numbers) as part of the transaction.

It’s also a much easier way to keep track of rent payments, as August shows both landlords and tenants what’s been paid (or still outstanding), all in one simple app.  

Do payments in August cost anything? 

Rent payments with August are completely free.

Our payment system works like bank transfers, so money is sent straight from the tenant’s account to the landlord’s with no hidden fees or charges.

Want more property management tips and guidance? Follow August on Facebook and Instagram, or become a Founding Member to get early access to the app and other exclusive benefits. 

This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.