Halifax is Migrating to Lloyds: What This Means for Your Integration

What is happening?

Lloyds Banking Group is progressively migrating Halifax customers onto the Lloyds platform. Affected customers retain their existing sort code, account number and name, but their Halifax app is no longer active for authentication. Migrated customers must use the Lloyds app to authorise payments and manage their accounts.

This is a phased rollout, expected to complete by 31 October 2026. During this period, your users will be in a mixed state: some will remain on Halifax, while others will have already migrated to Lloyds. This creates a window in which the same customer journey may work for one user and fail for another, depending on whether they have completed the steps to migrate to Lloyds Banking app.

What happens when a migrated customer tries to authenticate via Halifax?

When a customer who has already migrated to Lloyds is directed to the Halifax app to authorise a payment or connect their account, the Halifax app will cancel the request. The customer is shown a cancellation message from Halifax explaining that they should be using the Lloyds app instead, and are prompted to return to the merchant. Coming soon is an API failure reason, see below for more information.

What TrueLayer has done

TrueLayer has taken two significant steps to protect your users during this transition.

1. Priming banners on the Hosted Payments Page (HPP)

For merchants using TrueLayer's Hosted Payments Page, we have added a contextual banner that appears when a user selects Halifax. 

This banner gives migrated customers the prompt they need to correct their selection before being redirected, reducing failed payment attempts.

On the payment cancelled screen, TrueLayer also surfaces this guidance as a recovery action, encouraging users to try again and select Lloyds.

2. A structured failure reason from Halifax (ETA: 28/08)

Following TrueLayer's engagement with Lloyds Banking Group, Halifax has agreed to return a specific failure reason when a user is redirected to Halifax post-migration and the attempt fails. This failure reason will be available in TrueLayer's API response once Halifax releases the change from August 28th onwards.

This is a significant signal for your integration. It means you can:

• Distinguish a Halifax failure due to a migrated account from other payment failures, and avoid retrying with Halifax.
• Treat the user as a Lloyds customer for any subsequent retry or re-authentication prompt.
• Surface targeted guidance to the user in your own UI, prompting them to use Lloyds instead.

Impact by Service

Payments (PIS)

Customers who have migrated to Lloyds and are sent through a Halifax payment journey may be unable to complete their payment. This applies particularly to returning-user flows and any integration where Halifax is preselected.

• We recommend ensuring that Lloyds (ob-lloyds) is available as a selectable option wherever Halifax is currently presented, so migrated users can complete their journey by switching to Lloyds.
• Halifax has agreed to provide a specific failure reason where payments fail due to accounts that have been migrated. This failure reason can be used to resolve any subsequent attempts by using ob-lloyds.
• Where Halifax is preselected in your integration, consider switching to a user_selected flow to avoid failures for migrated customers.
• Where Halifax is preselected and you do not use TrueLayer interfaces, consider enabling the user to change to Lloyds before calling TrueLayer. 
• Where Halifax is preselected and you do not use TrueLayer interfaces, ensure you consume the new failure reason to identify a transferred account and update the provider_id.

Variable Recurring Payments (VRP)

Existing VRP mandates will continue to operate on Halifax for the time being, and no immediate action is required. 

• No immediate action is required for existing consents.
• New Users who have been migrated should be prompted to use ob-lloyds when establishing a new consent. 

Payouts 

• No impact - Sort Code, Account Number, and Name remains the same.

Account connections (AIS)

• Customers who have migrated to Lloyds, but established their consent with Halifax will continue to access data via Halifax.
• Existing Halifax consents will continue to work normally. 
• Reconfirmation of consent will continue to work normally.
• Generating a reauthentication link will be impacted if the user has migrated to Lloyds.
• If a migrated customer needs to re-authenticate or renew their consent, this will fail via Halifax. In that case, they will need to create a new connection via Lloyds.
• We recommend prompting users to reconnect via ob-lloyds if they encounter an error re-authenticating their Halifax account, or disabling reauthentication for ob-halifax until the migration is confirmed to be completed.

Variable Recurring Payments (VRP)

• Existing VRP mandates will continue to operate on Halifax for the time being. 
• No immediate action is required.
• New Users who have been migrated should be prompted to use ob-lloyds when establishing a new consent. 

Verification API

• No impact - These are new connections where the migrated user can pick Lloyds in the flow. 

Signup+

• See Payments (PIS).

Transactions Verified Payouts (TVP)

Customers who have migrated to Lloyds, but performance TVP for payouts will be unaffected for payouts, but may be impacted for Payins.

• No impact on payout - Sort Code, Account Number and Name remain the same. 

• However, if using provider_id from the webhook to preselect subsequent payments in, then any preselected payments with ob-halifax could be impacted depending on whether the user has migrated or not.
• Therefore, see recommendation for Payments PIS preselected.

Impact by Integration Type

The table below summarises the impact and recommended actions based on how Halifax is used in your integration.