The Payments Forward Plan sets out 2026 priorities across regulation, stablecoins, open banking and digital ID, driving UK payments modernisation and innovation.
The Payments Forward Plan aims to transform the payments sector over the next three years by advancing the National Payments Vision. 2026 will see the consolidation of several critical initiatives aimed at delivering the UK’s vision of a world-leading sector enabled by next-generation technology. Four key pillars emerge, and significant milestones for the coming year include:
- Regulatory reform. Consolidation of the PSR and FCA is a first step. The rules on contactless payments will be relaxed, subject to strong anti-fraud measures from providers. As 2026 unfolds, the FCA will consult on payments assimilated law to ensure the UK’s regulatory framework supports tokenised payments and deposits, and to consider whether changes are needed to support agentic AI payments.
- Stablecoins. Regulatory sandbox trials are already underway. The Plan paves the way for payment policy sprints, a framework for future regulation, joint FCA/Bank of England dual regulation of stablecoin and an FCA policy statement on issuance. A deadline of the end of 2026 is set to finalise the supervisory approach, with the FCA cryptoasset regime going live in October 2027.
- Open banking. 2026 could be a turning point for open banking as the sector shifts from payment innovation to true data-driven solutions. An industry-led scheme is already driving the adoption of commercial variable recurring payments. In Q3, the FCA will consult on the Long Term Regulatory Framework Interface Rules and, by the end of Q4, the identity of the Open Banking Future Entity should be clear. Supervisory powers will also transfer to the FCA.
- Digital ID. Digital ID, which is already transforming financial services, is a vital tool to combat fraud and identity theft and improve access to public services within the wider UK digital roadmap. The government is currently consulting with the public and key stakeholders about the design and technical details of a digital ID scheme. Opportunities for digital ID and digital tools will be mapped throughout 2026, and voluntary adoption of digital ID will be a reality by the end of this Parliament.
Alongside these, we have also been promised a decision on card processing and cross-border interchange fees, a report on the G20 Roadmap on enhancing cross-border payments, and an update on consumer credit reform. Meeting the targets in the Plan will signal a significant shift in the UK payments sector’s landscape and ecosystem. The message—full steam ahead—is clear.
