As digital payment methods continue to evolve, UK consumers and businesses are increasingly seeking more innovative and flexible payment solutions. New research from Moneyhub, the Open Banking data and payments platform, has revealed a strong appetite for intelligent payments that can be delivered by Open Banking and Variable Recurring Payments (VRPs), highlighting significant opportunities for businesses to capitalise on modern payment technologies. 

A significant portion of consumers now recognise the benefits of Open Banking payments, which allow secure, regulated transfers directly from and into bank accounts enabling faster and more cost-effective payments. Findings include 45% feeling comfortable using this payment type for regular bills and 39% expressing confidence in its use for large transactions. Additionally, 40% of consumers would like their banks to offer sweeping VRPs to unlock intelligent payments (automated transfers between accounts), showing an increasing appetite for smarter financial tools that fit around people’s lifestyles.

Commercial VRPs, which offer many enhancements over direct debits, present a major opportunity for businesses to offer more flexible and cost-effective payment options with intelligence. However, delays in bank adoption are preventing businesses from fully leveraging these innovations. The absence of a competitive and consistent framework is stalling economic growth and hindering new commercial models that align with modern consumer expectations, leaving the UK at risk of falling further behind its European counterparts. 

The demand for innovative payment solutions is clear, with high-income groups particularly keen on adopting VRPs. Businesses that embrace these technologies early stand to gain a competitive edge by improving customer satisfaction and streamlining transactions.

Despite consumer enthusiasm, gaps in Open Banking protections for consumers and merchants must be addressed. A robust regulatory framework is essential to build trust and ensure the security of these payment methods.

As digital payments continue to evolve, banks and regulators must act swiftly to establish a forward-thinking Open Banking ecosystem that fosters innovation, enhances competition, and meets the evolving needs of businesses and consumers alike.

Dan Scholey, CCO at Moneyhub comments: “Consumers are clearly ready for the next evolution in payments, and businesses are eager to meet this demand. The increasing adoption of Open Banking demonstrates a real shift in how people want to manage their finances—seeking greater flexibility with intelligence, security, and control over their payments. However, delays in establishing a robust commercial VRP framework are holding back innovation and economic growth. 

“The industry must work together to remove these barriers and provide consumers with the seamless, secure, and efficient payment solutions they deserve. If we are to keep up with consumer expectations and global trends, financial institutions must work collaboratively with regulators to establish a competitive and consistent framework. By doing so, we can create a payment ecosystem that not only benefits consumers and merchants but also fosters innovation and economic growth. Now is the time for banks and regulators to act to unlock the full potential of Open Banking."