UK Payments Initiative has launched a scheme to enable recurring and automated account-to-account payments via Open Banking.
The launch was announced at Money2020 on 2 June 2026.
The scheme, developed collaboratively by banks, building societies, and fintech firms, establishes a shared rulebook, commercial model, and operational standards for flexible, automated, and recurring payments powered by Open Banking infrastructure. Initial use cases include payments to government bodies, utilities, charities, and financial services providers.
Addressing the limits of existing Open Banking payments
Open Banking payments have seen considerable growth in the UK in recent years, with industry data indicating more than 37 million payments processed per month. However, the overwhelming majority of those transactions are one-off payments. The UKPI scheme is specifically structured to extend Open Banking's reach into recurring and variable payment flows — an area where traditional direct debit has historically dominated.
Mark Fieldhouse, CRO at Form3, says: `Over the past decade, much of the financial infrastructure across the UK and Europe has consolidated within global organisations. But now is the moment for the UK to move quickly and build strong domestic capability while contributing to a more diverse and competitive global landscape.` adding that `A scheme rulebook and a commercial model are necessary foundations, but what will determine whether this will genuinely challenge card network dominance is whether the underlying rails can deliver the reliability and scale that Visa and Mastercard have spent decades building.`
Moreover, Richard Koch, Managing Director, UK Payments Initiative: `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.`
For consumers, the scheme removes the need to share card details or rely on direct debit mandates for regular payments. Instead, consumers approve payments directly from their bank account within limits they define themselves, covering the amount, frequency, and duration of the permission. The framework also includes consumer safeguards and dispute resolution processes, which UKPI describes as foundational to building trust across participants.
For businesses, the scheme is intended to reduce payment costs and streamline transaction processes, while creating a more consistent and scalable rails model for collecting recurring payments from customers.
Rulebook finalised, rollout under way
The scheme's rulebook has been finalised among participating institutions, and the initiative has moved into market rollout following a live proving phase. The breadth of participation — spanning major UK banks and building societies alongside fintech companies — reflects cross-sector backing for the initiative.
UKPI has also framed the scheme as a vehicle to support ambitions outlined in the UK government's National Payments Vision, which set out a policy direction for expanding Open Banking payment adoption at scale. By establishing shared commercial and operational standards, UKPI aims to provide the infrastructure layer that has so far been absent from the Open Banking payments market, limiting the uptake of automated payment models beyond single transactions.
A company official stated that the commercial approach is designed to allow development beyond the initial use cases, with subscription models and broader e-commerce applications identified as future directions.
The UK's Open Banking infrastructure has been in development since the Competition and Markets Authority's 2017 mandate requiring the nine largest current account providers to open up data access. While Open Banking payments have grown steadily since, the absence of a standardised scheme for recurring payments has been widely cited as a barrier to wider commercial adoption. UKPI's framework is positioned to address that structural gap.
