Polar Moment’s Payments Perspective: June 2026

June 29, 2026

Welcome to the May edition of Polar Moment’s Payments Perspective. Here’s what’s been happening in the world of payments this month.

New UK Payment Scheme

The UK Payments Initiative (UKPI) was launched on the 1^st of June. It is the first new UK payment scheme since Faster Payments in 2008.

UKPI introduces commercial variable recurring payments (cVRP), enabling businesses to collect automated payments directly from bank accounts via open banking. Consumers approve payments with controls over amount, frequency, and duration.

The FCA sees UKPI as the foundation for Open Banking in the UK. It’s aware that regulation needs to catch up with developments in the industry and aims to be the single lead regulator in this area.

Find out more here:

European Payments Initiative Gains Ground

Two leading Austrian banking groups, Erste Bank Oesterreich and Raiffeisen, have become shareholders in the European Payments Initiative (EPI). They will be introducing EPI’s instant account-to-account payment solution, Wero, to Austria.

Wero is also entering Luxembourg and the Netherlands, as EPI continues on its mission to establish a European alternative to the major card networks.

Adyen Selected to Process for GOV.UK Pay

Dutch payments processor Adyen has been selected to be the new payment services provider (PSP) for GOV.UK Pay’s non-Crown card and pay-by-bank payments.

The GOV.UK Pay platform was created in 2016 to help the public sector to manage their payment services independently, swiftly, and securely. Since its launch, GOV.UK Pay has processed 135 million transactions, with a total value of more than £9 billion.

Find out more here:

Adyen Selected to Process GOV.UK Pay’s non-Crown Card and Pay-by-Bank Payments

Affirm and Stripe Enter UK Pay Over Time Market

Next month, UK businesses using Stripe will be able to offer Affirm’s deferred payment service to their customers. The timing coincides with the Financial Conduct Authority starting to regulate Buy Now Pay Later (BNPL) schemes, such as Klarna.

The partners hope to replicate the success of the offering in the USA. There, Stripe merchants that enabled Affirm saw an average 13.9% increase in revenue per eligible session, and a 21.3% conversion uplift for purchases of $250 or more.

Find out more here:

Stripe and Affirm Bring North American BNPL Partnership to the UK Market

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