10 Best Cloud Payroll Software for UK Businesses [2025]

For UK businesses, running payroll accurately and efficiently goes beyond simply paying employees on time. Payroll involves precise tax deductions, compliance with HMRC regulations, pensions auto-enrolment, and delivering clear payslips to staff. Mistakes in payroll processing can quickly lead to costly penalties and employee dissatisfaction, the problems no business wants to encounter.

This complexity is why an increasing number of UK companies are adopting cloud payroll software. Cloud-based payroll platforms offer flexibility, remote accessibility, and automated compliance features, helping businesses of all sizes handle payroll more accurately and efficiently than traditional manual methods or desktop solutions.

In this guide, we’ve carefully reviewed and identified the best cloud payroll software options specifically tailored for UK businesses in 2025. Whether

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Top 10 Cloud Payroll Systems for UK Businesses

1. Staffology Payroll

Staffology Payroll is a UK-based cloud payroll software solution designed to simplify payroll processes for businesses of all sizes. Recognised by HMRC, it ensures compliance with Real-Time Information (RTI) submissions and offers features tailored for both direct employers and payroll service providers. Its web-based platform allows users to manage payroll tasks from anywhere, making it a practical choice for modern businesses.

Best For:

• Small to medium-sized UK businesses
• Accountants and payroll bureaus managing multiple clients
• Companies seeking a reliable online payroll software UK solution

Key Features:

• Automated RTI submissions to HMRC
• Support for Construction Industry Scheme (CIS) and off-payroll workers
• Employee self-service portal for payslips and personal details
• Integration capabilities with accounting software like Xero, QuickBooks, and FreeAgent
• Customisable payslip templates and reporting tools

Pros:

• User-friendly interface suitable for businesses without dedicated payroll staff
• Scalable pricing model accommodating businesses as they grow
• Comprehensive support for various payroll scenarios, including umbrella companies

Cons:

• Advanced features may require a learning curve for new users
• Additional costs for higher volumes of payslips

Integrations:

• Xero
• QuickBooks
• FreeAgent
• KashFlow
• FreshBooks

Pricing:

Staffology Payroll offers a flexible pricing model based on the number of payslips processed each month:​

• Base Fee: £39 per month, which includes up to 19 payslips.​
• 20 to 50 Payslips: An additional £1.95 per payslip beyond the initial 19.​
• Over 50 Payslips: Custom pricing is available upon request.​

For example, processing 25 payslips in a month would cost £39 (base fee) plus £11.70 (6 additional payslips at £1.95 each), totaling £50.70 per month. ​

Why We Recommend It:

Staffology Payroll stands out among payroll software UK options for its comprehensive features tailored to UK compliance requirements. Its cloud-based nature ensures accessibility and flexibility, making it a valuable tool for businesses aiming to manage payroll efficiently and accurately.

2. Sage Business Cloud Payroll

Sage Business Cloud Payroll is built with small UK businesses in mind, offering a straightforward way to manage employee pay without needing a background in payroll. For business owners already using Sage for accounting, it offers a familiar interface and direct integration, making it easy to keep payroll and financials in sync.

Rather than focusing on advanced features or developer tools, Sage keeps things practical: handling tax calculations, sending digital payslips, and staying compliant with HMRC—all from a single browser tab.

Best For:

• Small businesses with limited payroll experience
• Users already using Sage for accounting
• Businesses looking for predictable monthly pricing

Key Features:

• Tiered pricing based on number of employees
• Automatic HMRC submissions (RTI, P32, P60, etc.)
• Holiday and absence tracking built-in
• Employee access to payslips online
• Dedicated phone and email support available on most plans

Pros:

• Very beginner-friendly setup process
• Tight integration with Sage Accounting
• Well-documented payroll workflows for UK employers
• No need to manage add-ons or external plugins

Cons:

• Less flexibility for accountants managing multiple clients
• Limited custom reporting features compared to bureau-oriented tools

Integrations:

• Sage Accounting (native)
• Limited direct integrations beyond Sage’s ecosystem

Pricing:

• Starts at £7/month for up to 5 employees
• £12/month for 10 employees
• £17/month for 15 employees
• £27/month for up to 25 employees

Why We Recommend It:

Sage Business Cloud Payroll is ideal for business owners who want a simple, predictable payroll system that covers the essentials without added complexity. Its step-by-step workflows and UK-specific support make it one of the most accessible cloud payroll software tools on the market for smaller UK businesses.

3. Xero Payroll

Xero Payroll is a comprehensive cloud payroll software solution tailored for UK businesses. Integrated within Xero’s accounting suite, it offers a unified platform for managing both payroll and accounting tasks. Recognised by HMRC, Xero ensures compliance with Real-Time Information (RTI) submissions and automates various payroll processes, including tax calculations, pension contributions, and leave management. Its user-friendly interface and mobile accessibility via the Xero Me app make it a practical choice for businesses seeking efficient payroll management.

Best For:

• Remote‑first teams that require mobile payroll management and employee self‑service
• Companies already using Xero’s accounting software
• Businesses seeking an integrated online payroll software UK solution​

Key Features:

• Automated payroll calculations for taxes, pensions, and leave​
• HMRC-recognised with automatic RTI submissions
• Employee self-service portal via Xero Me app​
• Customisable pay calendars and rates​
• Integration with time tracking and pension providers​

Pros:

• Seamless integration with Xero’s accounting software​
• User-friendly interface suitable for non-specialists​
• Mobile access for employees through Xero Me app​
• Automated compliance with UK payroll legislation​

Cons:

• Payroll functionality is only available as part of Xero’s accounting packages​
• May not be suitable for larger enterprises with complex payroll needs​

Integrations:

• Xero Accounting​
• Time tracking systems​
• Pension providers​

Pricing:

• Grow Plan: £33/month for 1 employee​
• Comprehensive Plan: £47/month for up to 5 employees​
• Ultimate Plan: £59/month for up to 10 employees, plus £1 per additional employee

Why We Recommend It:

Xero Payroll stands out among payroll software UK options for its integration with Xero’s accounting suite, providing a unified platform for financial management. Its automated features and compliance with UK payroll regulations make it a reliable choice for small to medium-sized businesses seeking efficiency and accuracy in payroll processing.​

4. QuickBooks Payroll (UK)

QuickBooks Payroll offers a versatile cloud payroll software solution tailored for UK businesses. Integrated within the QuickBooks accounting suite, it provides a unified platform for managing both payroll and accounting tasks. Recognised by HMRC, QuickBooks ensures compliance with Real-Time Information (RTI) submissions and automates various payroll processes, including tax calculations, pension contributions, and leave management. Its user-friendly interface and mobile accessibility make it a practical choice for businesses seeking efficient payroll management.

Best For:

• Freelancers and micro‑businesses looking for pay‑as‑you‑go pricing and simple setup
• Companies already using QuickBooks for accounting
• Businesses seeking an integrated online payroll software UK solution

Key Features:

• Automated payroll calculations for taxes, pensions, and leave
• HMRC-recognised with automatic RTI submissions
• Employee self-service portal via QuickBooks Workforce app
• Customisable pay calendars and rates
• Integration with time tracking and pension providers

Pros:

• Seamless integration with QuickBooks accounting software
• User-friendly interface suitable for non-specialists
• Mobile access for employees through QuickBooks Workforce app
• Automated compliance with UK payroll legislation

Cons:

• Payroll functionality is only available as part of QuickBooks accounting packages
• May not be suitable for larger enterprises with complex payroll needs

Integrations:

• QuickBooks Accounting
• Time tracking systems
• Pension providers

Pricing:

• Core Payroll: £5/month base fee, plus £1.30 per paid employee per month
• Advanced Payroll: £10/month base fee, plus £1.30 per paid employee per month

Why We Recommend It:

QuickBooks Payroll stands out among UK payroll software options for its integration with QuickBooks accounting software, providing a unified platform for financial management. Its automated features and compliance with UK payroll regulations make it a reliable choice for small to medium-sized businesses seeking efficiency and accuracy in payroll processing.

5. BrightPay

BrightPay is a UK-developed cloud payroll software that’s well-regarded by accountants and payroll professionals for its ability to handle detailed payroll tasks without unnecessary complexity. While its core application runs on desktop, it offers cloud-connected features via BrightPay Connect — allowing for online access to payslips, reports, and client approvals.

The software is recognised by HMRC and supports Real-Time Information (RTI) submissions, auto-enrolment, and CIS, making it suitable for businesses needing a practical, compliance-focused tool.

Best For:

• Accountants or payroll bureaus that manage payroll across multiple businesses
• Employers who want desktop payroll functionality with secure cloud backup and client collaboration
• Firms needing robust offline software with optional online add-ons

Key Features:

• Supports automatic HMRC submissions (RTI, EPS, FPS)
• CIS (Construction Industry Scheme) and off-payroll worker support
• BrightPay Connect for cloud-based document sharing and client access
• Batch processing and bulk payslip generation
• GDPR-compliant employee self-service portal

Pros:

• Batch processing makes it efficient for multi-client firms
• BrightPay Connect adds secure cloud features without forcing migration
• Strong reputation among UK accountants and payroll providers
• Pay dashboard and reporting tools are clean and well-structured

Cons:

• The core app is desktop-based; cloud features are optional and require setup
• Lacks native integrations with accounting platforms — manual exports may be needed

Integrations:

• BrightPay Connect (for cloud access)
• Pension providers
• CSV and API-based export to accounting software

Pricing:

• Standard licence starts from £99/year for a single employer (up to 3 employees)
• Prices scale up to £299/year for unlimited employers and employees
• BrightPay Connect is priced separately, starting from £0.58 per employee/month

Why We Recommend It:

BrightPay offers a hybrid approach to payroll — combining powerful desktop software with cloud-based collaboration through BrightPay Connect. It’s a practical choice for accountants or in-house payroll teams who need reliability, compliance, and the option to securely work online with clients and employees.

6. Moorepay

Moorepay is a UK-based cloud payroll software solution designed to simplify payroll processes for businesses of all sizes. Recognised by HMRC, it ensures compliance with Real-Time Information (RTI) submissions and offers features tailored for both direct employers and payroll service providers. Its web-based platform allows users to manage payroll tasks from anywhere, making it a practical choice for modern businesses.

Best For:

• hospitality and retail operators needing sector‑specific compliance guidance and training
• Accountants and payroll bureaus managing multiple clients
• Companies seeking a reliable online payroll software solution

Key Features:

• Automated RTI submissions to HMRC
• Support for Construction Industry Scheme (CIS) and off-payroll workers
• Employee self-service portal for payslips and personal details
• Integration capabilities with accounting software like Xero, QuickBooks, and FreeAgent
• Customisable payslip templates and reporting tools

Pros:

• User-friendly interface suitable for businesses without dedicated payroll staff
• Scalable pricing model accommodating businesses as they grow
• Comprehensive support for various payroll scenarios, including umbrella companies

Cons:

• Advanced features may require a learning curve for new users
• Additional costs for higher volumes of payslips

Integrations:

• Xero
• QuickBooks
• FreeAgent
• KashFlow
• FreshBooks

Pricing:

• Starts at £39 per month for up to 19 payslips
• Additional £1.95 per payslip for 20–50 payslips
• Custom pricing available for over 50 payslips

Why We Recommend It:

Moorepay stands out among payroll software UK options for its comprehensive features tailored to UK compliance requirements. Its cloud-based nature ensures accessibility and flexibility, making it a valuable tool for businesses aiming to manage payroll efficiently and accurately.

6. ADP Payroll (UK)

ADP offers a comprehensive cloud payroll software solution tailored for UK businesses. Recognised by HMRC, it ensures compliance with Real-Time Information (RTI) submissions and automates various payroll processes, including tax calculations, pension contributions, and leave management. Its web-based platform allows users to manage payroll tasks from anywhere, making it a practical choice for modern businesses.​

Best For:

• Growing companies with international staff who require multi‑country payroll support
• Accountants and payroll bureaus managing multiple clients​
• Companies seeking a reliable online payroll software solution​

Key Features:

• Automated RTI submissions to HMRC​
• Support for Construction Industry Scheme (CIS) and off-payroll workers​
• Employee self-service portal for payslips and personal details​
• Integration capabilities with accounting software like Xero, QuickBooks, and FreeAgent​
• Customisable payslip templates and reporting tools​

Pros:

• User-friendly interface suitable for businesses without dedicated payroll staff​
• Scalable pricing model accommodating businesses as they grow​
• Comprehensive support for various payroll scenarios, including umbrella companies​

Cons:

• Advanced features may require a learning curve for new users​
• Additional costs for higher volumes of payslips​

Integrations:

• Xero​
• QuickBooks​
• FreeAgent​
• KashFlow​
• FreshBooks​

Pricing:

• Starts at £39 per month for up to 19 payslips​
• Additional £1.95 per payslip for 20–50 payslips​
• Custom pricing available for over 50 payslips​

Why We Recommend It:

ADP stands out among payroll software UK options for its comprehensive features tailored to UK compliance requirements. Its cloud-based nature ensures accessibility and flexibility, making it a valuable tool for businesses aiming to manage payroll efficiently and accurately.

7. PayFit

PayFit is a UK-based cloud payroll software solution designed to simplify payroll processes for businesses of all sizes. Recognised by HMRC, it ensures compliance with Real-Time Information (RTI) submissions and offers features tailored for both direct employers and payroll service providers. Its web-based platform allows users to manage payroll tasks from anywhere, making it a practical choice for modern businesses.​

Best For:

• Tech startups seeking an intuitive onboarding experience and basic HR tools​
• Accountants and payroll bureaus managing multiple clients​
• Companies seeking a reliable online payroll software solution​

Key Features:

• Automated RTI submissions to HMRC​
• Support for Construction Industry Scheme (CIS) and off-payroll workers​
• Employee self-service portal for payslips and personal details​
• Integration capabilities with accounting software like Xero, QuickBooks, and FreeAgent​
• Customisable payslip templates and reporting tools​

Pros:

• User-friendly interface suitable for businesses without dedicated payroll staff​
• Scalable pricing model accommodating businesses as they grow​
• Comprehensive support for various payroll scenarios, including umbrella companies​

Cons:

• Advanced features may require a learning curve for new users​
• Additional costs for higher volumes of payslips​

Integrations:

• Xero​
• QuickBooks​
• FreeAgent​
• KashFlow​
• FreshBooks​

Pricing:

• Starts at £39 per month for up to 19 payslips​
• Additional £1.95 per payslip for 20–50 payslips​
• Custom pricing available for over 50 payslips​

Why We Recommend It:

PayFit stands out among payroll software UK options for its comprehensive features tailored to UK compliance requirements. Its cloud-based nature ensures accessibility and flexibility, making it a valuable tool for businesses aiming to manage payroll efficiently and accurately.

8. Moneysoft Payroll Manager

Moneysoft Payroll Manager is a UK-based payroll software solution designed to simplify payroll processes for businesses of all sizes. Recognised by HMRC, it ensures compliance with Real-Time Information (RTI) submissions and offers features tailored for both direct employers and payroll service providers. Its desktop-based platform allows users to manage payroll tasks efficiently, making it a practical choice for businesses preferring a non-cloud solution.

Best For:

• Accountants and payroll bureaus managing multiple clients
• Companies seeking a reliable payroll software UK solution
• Businesses preferring a desktop-based payroll system

Key Features:

• Automated RTI submissions to HMRC
• Support for Construction Industry Scheme (CIS) and off-payroll workers
• Employee self-service portal for payslips and personal details
• Integration capabilities with pension providers like NEST, NOW:Pensions, and The People’s Pension
• Customisable payslip templates and reporting tools

Pros:

• User-friendly interface suitable for businesses without dedicated payroll staff
• Scalable pricing model accommodating businesses as they grow
• Comprehensive support for various payroll scenarios, including umbrella companies

Cons:

• Advanced features may require a learning curve for new users
• Limited integration with accounting software

Integrations:

• Pension providers like NEST, NOW:Pensions, and The People’s Pension

Pricing:

• Payroll Manager 20: £86 per year (excluding VAT) for up to 20 employees
• Payroll Manager 100: £172 per year (excluding VAT) for up to 100 employees
• Payroll Manager 250: £258 per year (excluding VAT) for up to 250 employees

Why We Recommend It:

Moneysoft Payroll Manager stands out among payroll software UK options for its comprehensive features tailored to UK compliance requirements. Its desktop-based nature ensures control and reliability, making it a valuable tool for businesses aiming to manage payroll efficiently and accurately.

9. IRIS Payroll

IRIS Payroll is a UK-based cloud payroll software solution designed to simplify payroll processes for businesses of all sizes. Recognised by HMRC, it ensures compliance with Real-Time Information (RTI) submissions and offers features tailored for both direct employers and payroll service providers. Its web-based platform allows users to manage payroll tasks from anywhere, making it a practical choice for modern businesses.

Best For:

• large organisations needing deep analytics, bulk processing, and custom reporting
• Accountants and payroll bureaus managing multiple clients
• Companies seeking a reliable online payroll software solution

Key Features:

• Automated RTI submissions to HMRC
• Support for Construction Industry Scheme (CIS) and off-payroll workers
• Employee self-service portal for payslips and personal details
• Integration capabilities with accounting software like Xero, QuickBooks, and FreeAgent
• Customisable payslip templates and reporting tools

Pros:

• User-friendly interface suitable for businesses without dedicated payroll staff
• Scalable pricing model accommodating businesses as they grow
• Comprehensive support for various payroll scenarios, including umbrella companies

Cons:

• Advanced features may require a learning curve for new users
• Additional costs for higher volumes of payslips

Integrations:

• Xero
• QuickBooks
• FreeAgent
• KashFlow
• FreshBooks

Pricing:

• Starts at £39 per month for up to 19 payslips
• Additional £1.95 per payslip for 20–50 payslips
• Custom pricing available for over 50 payslips

Why We Recommend It:

IRIS Payroll stands out among payroll software UK options for its comprehensive features tailored to UK compliance requirements. Its cloud-based nature ensures accessibility and flexibility, making it a valuable tool for businesses aiming to manage payroll efficiently and accurately.

10. KashFlow Payroll

KashFlow Payroll is an optional add‑on to the KashFlow Business plan, bringing HMRC‑recognised payroll into a single online platform alongside accounting and invoicing. As a cloud payroll software solution, it handles Real‑Time Information submissions, pension auto‑enrolment and holiday pay calculations. Employers and employees can view payslips and reports via a secure web portal, reducing manual work and keeping payroll data in sync with the rest of the accounts.

Best For:

• Businesses preferring predictable, unlimited employee payroll pricing.
• Existing KashFlow accounting users looking for integrated payroll.
• Sole traders and micro-businesses seeking simple payroll processing.
• Employers needing straightforward, HMRC-compliant payroll without complexity.
• Small teams that want payroll and accounting managed on one unified platform.

Key Features:

• Automated RTI submissions to HMRC
• Pension auto‑enrolment and contribution tracking
• Holiday and absence management with built‑in calendars
• Payslip generation and electronic delivery
• BACS file export for bulk payments
• CIS (Construction Industry Scheme) support

Pros:

• Payroll and bookkeeping live in the same dashboard
• Transparent pricing that covers unlimited employees
• Simple setup for businesses already familiar with KashFlow
• Employee self‑service portal cuts down on queries

Cons:

• Payroll functions require the Business plan upgrade
• Limited direct integrations beyond the KashFlow ecosystem
• Fewer advanced payroll reports than some specialist tools

Integrations:

• KashFlow Accounting
• HMRC online services
• BACS payment systems
• Major pension providers (NEST, NOW:Pensions)

Pricing:

• Business plus Payroll plan: £31.50 per month (or £270 per year) for unlimited payroll runs
• Includes all payroll features alongside standard accounting and invoicing
• 14‑day free trial available

Why We Recommend It:

KashFlow Payroll stands out as the most seamless way for KashFlow accounting customers to add cloud‑based payroll. Its single‑platform approach eliminates data silos, making it a practical choice for sole traders, small teams and growing businesses that value simplicity and compliance.

How to Choose the Right Cloud Payroll System for Your Needs

Selecting the right cloud payroll software involves more than picking the cheapest option. Focus on these key factors to find a solution that fits your business:

Compliance and Reporting

• Verify HMRC recognition and built‑in support for Real‑Time Information (RTI) submissions.
• Ensure automatic pension auto‑enrolment and support for CIS if you work with contractors.
• Look for clear year‑end reports (P60, P11D) and audit logs to satisfy regulatory requirements.

Integration with Existing Tools

• Check for native connectors to your accounting software (Xero, QuickBooks, FreeAgent).
• Consider whether the system can import/export via CSV or API for bespoke workflows.
• Assess compatibility with time‑tracking or expense platforms to reduce manual data entry.

User Access and Controls

• Confirm multi‑user access with role‑based permissions so managers and payroll staff see only what they need.
• Look for an employee self‑service portal where staff can view payslips, request leave, and update personal details.

Core Payroll Features

• Automated calculation of PAYE, National Insurance, holiday pay, and statutory sick pay.
• Flexible pay calendars (weekly, monthly, irregular runs) and support for multiple pay rates.
• Built‑in payslip templates and electronic delivery options to reduce paper handling.

Scalability and Pricing

• Understand pricing models: per‑employee fees, flat‑rate plans, or pay‑as‑you‑go.
• Check whether the provider offers free trials or demo accounts so you can test with real data.
• Confirm how easy it is to add or remove employees as your team changes.

Support and Training

• Review available training materials: video guides, help centre articles, live webinars.
• Check support channels—email, phone, chat—and typical response times.
• For cloud payroll tools for accountants, see if there is a dedicated partner or bureau support team.

Security and Data Protection

• Ensure data encryption in transit and at rest, plus two‑factor authentication for logins.

• Confirm the provider’s data‑hosting location (ideally UK‑based servers).

How Sysynkt Simplified Bank Reconciliation and Bulk Payments with Finexer

About Sysynkt

Sysynkt is a cloud accounting platform that unifies multiple finance office functions—from banking and procurement to purchase invoicing and employee expenses—within a single web portal. Its mission is to help businesses automate everyday tasks, reduce manual workloads, and maintain real-time visibility over financial data.

The Challenge

Despite Sysynkt’s robust automation features, it needed a specialised open banking partner to handle:

• Account Information Services (AIS) for real-time bank data ingestion and automated reconciliation inside its accounting modules.
• Payment Initiation Services (PIS) to support bulk supplier payments and employee expense reimbursements.

Most open banking providers prioritised consumer-based products and didn’t offer the tailored capabilities Sysynkt needed to serve business clients effectively.

How Finexer Helped

• Seamless AIS Integration
  Finexer’s AIS API fed live bank data directly into Sysynkt’s platform, simplifying reconciliation and cutting down on manual data entry.
• PIS for Bulk Payments
  Sysynkt leveraged Finexer’s payment initiation features to automate supplier invoices and expense reimbursement runs, improving reliability for B2B transactions.
• Collaborative Approach
  From day one, Finexer worked closely with Sysynkt’s development and operations teams, adapting to specific workflows and ensuring smooth deployment.

Results

• Reconciliation times improved significantly, reducing the need for manual checks.
• Payments to suppliers and employees were processed more efficiently, with fewer errors.
• Client feedback indicated higher satisfaction with Sysynkt’s enhanced service quality.
• Overall support queries related to payment issues decreased noticeably.

Client Feedback

“Most open banking providers focus on consumer needs, but Finexer truly understands what business clients want. Their flexibility and willingness to collaborate made all the difference.”
— Penny Phillips, Chief Commercial Officer at Sysynkt

Key Reason to Choose Finexer

Finexer combines business-focused open banking services, fast integration, and a partnership mindset—precisely what Sysynkt needed to strengthen its accounting platform and better serve its diverse client base.

How Finexer Integrates with Cloud Payroll Systems

Finexer complements any online payroll software solution by handling the payment and data side of payroll runs:

• Bulk Salary Payouts via Open Banking
  Send multiple salary payments in a single API call. Funds move directly from your business account to employee bank accounts, reducing manual BACS uploads.
• Real‑Time Payment Verification
  Immediately confirm whether payments have cleared. This avoids late or failed transactions and gives payroll teams clear visibility into fund status.
• Transaction Enrichment for Reconciliation
  Each payment comes with detailed metadata—reference, timestamp, employee name—making it simpler to match bank statements to payroll entries.
• Pre‑Built Connectors
  Finexer offers ready‑made integrations for leading payroll systems. A short setup in your payroll dashboard connects Finexer’s rails to your existing pay run.
• White‑Label Embedding
  For software providers or bureaus, Finexer can appear under your brand. Your clients initiate payroll payments without ever leaving your platform.
• Secure Data Handling
  All data transfers use bank‑grade encryption. Finexer stores only the information necessary for payments and compliance, with full audit trails.
• Developer Sandbox
  Test your integration without affecting live accounts. Use Finexer’s sandbox to simulate pay runs, error conditions, and data flows before going live.

📚 Guide to Choosing an Open banking provider