UK Payments Initiative has launched a new scheme for open banking payments in the UK, backed by banks and fintech groups.
The industry-led framework is designed to expand account-to-account payments beyond one-off transactions by enabling recurring and automated payments to businesses and government bodies. It sets out a shared rulebook, commercial model and operating standards for what it describes as variable recurring payments.
The launch comes as open banking payments continue to grow in the UK. Industry figures cited by the group show more than 37 million such payments are now processed each month, although most are still single transactions rather than recurring or flexible arrangements.
Under the new model, consumers can approve regular or variable payments directly from their bank account without providing card details or using direct debit. Payments can be collected only within limits agreed by the customer, including who can take payment, how much can be taken and how long consent remains in place.
Broad backing
The scheme is supported by a mix of high street lenders, building societies and fintech firms. Founding shareholders include Barclays, HSBC, Lloyds Banking Group, Monzo, Nationwide, NatWest, Revolut, Santander, Starling, TrueLayer, GoCardless, Plaid and Yapily, alongside a wider group of payments and software businesses.
That breadth of participation matters because previous efforts to expand open banking payments have often been held back by uneven adoption across the market. By securing support from both established banks and newer providers, the initiative aims to create a common structure that businesses can use at scale.
The initial focus is on payments to government, utilities, charities and financial services providers. Those sectors rely on regular billing cycles or repeat collections, making them a natural testing ground for alternatives to cards and direct debits.
Consumer controls
The scheme also includes consumer safeguards and dispute processes intended to build confidence in the system. Trust has been a central issue for open banking-based payments, particularly as they move from one-off purchases to ongoing payment relationships.
For merchants and billers, account-to-account payments have long been seen as a way to reduce costs and lessen dependence on card networks. Direct bank payments can also simplify the path from customer authorisation to settlement, although success depends on consistent rules across providers and a clear process for handling complaints or failed transactions.
Richard Koch, Managing Director of UK Payments Initiative, outlined the group's ambitions for the model.
"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," he said.
Policy context
The launch also aligns with the government's National Payments Vision, which calls for greater competition and innovation in UK payments. Policymakers have viewed open banking as one route to a more diverse market, but commercial models for wider adoption have remained difficult to establish.
The scheme has moved into rollout after live proving and completion of the rulebook by participating institutions. That suggests the group has shifted from design and testing into early implementation, with the challenge now turning to merchant adoption and customer uptake.
UK Payments Initiative was established to develop and operate a commercial scheme for variable recurring payments in the UK. Its formation reflects a broader industry effort to turn open banking from a regulatory requirement into a payments model that can compete more directly with long-established methods.
The scheme's backers also include Acquired, Atoa, Crezco, Fire, Fumopay, Modulr, PayPoint, Salt Edge, Token.io and Wonderful, alongside major banks and building societies. Their support underlines how much of the market is now invested in building a common route for recurring account-to-account payments.