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.
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.
