UK banks and fintechs join forces to launch new payment scheme

03 June 2026

New UK payment scheme will enable widespread adoption of account-to-account payments under government’s National Payments Vision

Yesterday at Money2020, UK Payments Initiative Ltd (UKPI) launched a scheme designed for the next-generation of open banking payments, marking a turning point in the availability of alternatives to traditional card-based and direct debit payments.

Open banking payments have grown rapidly in recent years, with more than 37 million payments processed per month according to industry data - but most of these are one-off payments. The new industry-led scheme changes that, enabling recurring and automated payments to businesses and government, in a way that is consistent, scalable, and designed for widespread adoption.

For consumers, this means being able to approve regular or variable payments directly from their bank account without sharing card details or relying on traditional direct debit. Payments can only be taken within the limits agreed by the consumer, giving them greater control over who can collect money, how much can be taken, and how long that permission lasts.

Developed collaboratively with banks and fintechs, UKPI’s scheme establishes a shared rulebook, commercial model and operational standards for flexible, automated, or recurring account-to-account payments, powered by open banking. These payments can be used initially for payments to the government, utilities, charities, financial services, and more.

Richard Koch, Managing Director, UK Payments Initiative said:

“This marks a defining moment for the next evolution of payments in the United Kingdom. This is about creating a payment model that works better for everyone, giving people more control and reducing friction for businesses. Our commercial approach will allow us to develop from these first customer journeys to subscription models and wider ecommerce.”

Consumer trust is foundational to the scheme’s design and the framework also includes safeguards and dispute processes to protect consumers and support trust across participants. By launching and participating in the scheme, banks and fintechs are working together to reduce payment costs for businesses, streamline payment friction, and enhance security for consumers, while unlocking new opportunities for innovation across the UK economy.

The new scheme is also intended to support the ambitions set out in the UK Government’s National Payments Vision by enabling new use cases for open banking payments at scale. The participation of major UK banks and building societies alongside fintech firms reflects the breadth of support behind the company. The scheme's rulebook has been finalised between participating institutions, with the initiative now moving into market rollout after successful live proving.