January 23, 2026
Why Account-to-Account Payments Are Transforming Digital Commerce — and How Cardstream Supports the Shift
Open Banking is set to play an increasingly important role in payments throughout 2026. Across the UK and Europe, Merchants, platforms, and consumers are exploring account-to-account (A2A) payments as an alternative way to pay, driven by a demand for lower costs, improved security, and smoother checkout experiences.
While adoption of Open Banking continues to grow, it is still evolving. Schemes, bank participation, and commercial models are maturing, and many use cases are now moving from early innovation towards broader, scalable deployment.
Cardstream’s expanding Open Banking capabilities enable Partners to fully leverage this shift, integrating fast, secure, and low cost payment journeys directly into their platforms.
A2A Payments: Fast, Secure, and Cost-Efficient
Account-to-account payments enable consumers to pay directly from their bank accounts, bypassing card rails. This delivers significant benefits for Merchants and consumers alike:
For Merchants:
For Customers:
Through Cardstream, Partners can offer Open Banking A2A payments alongside cards and APMs, giving Merchants greater flexibility and customers a smoother way to pay.
The Rise of Variable Recurring Payments (VRPs)
VRPs are among the most anticipated Open Banking enhancements set to enter wider adoption in 2026.
Unlike Direct Debits, which pull funds, VRPs enable customers to securely approve a recurring payment mandate within their banking app. This allows businesses to collect payments automatically, within agreed limits, without needing the customer to reauthenticate each time.
VRPs support multiple use cases, including subscriptions, usage based services, wallet top-ups, and flexible repayments.
As VRPs gain regulatory support and broader bank coverage, they are expected to become a powerful alternative to card-on-file billing, offering Merchants lower fees and fewer failed payments.
Cardstream continues to monitor and support VRP developments within the UK’s Open Banking roadmap to ensure Partners can adopt these capabilities as they mature.
Fraud Reduction Through Bank Level Security
One of the strongest advantages of Open Banking is its inherent security model:
This reduces common risks such as:
By routing payments through highly secure banking channels, Open Banking provides a robust layer of protection, and Cardstream integrates this model seamlessly into payment flows.
Cutting Checkout Friction at a Critical Moment
Checkout friction is still one of the biggest causes of lost revenue online. Research from Baymard Institute shows cart abandonment rates at around 70%, often due to slow or complex payment forms flow (Baymard Institute – Cart Abandonment Rate benchmark).
Open Banking directly addresses these pain points:
Customers simply:
Cardstream’s Open Banking solution fits alongside cards, APMs, and wallets, enabling Partners to offer a modern, streamlined payment experience.
Why Merchants Are Adopting Open Banking in 2026
Open Banking adoption is accelerating because it solves real challenges in commerce today:
✔ Lower payment costs
Merchants can reduce processing fees and improve margins.
✔ Higher conversion rates
Faster, simpler authentication reduces drop-off.
✔ Reduced fraud and chargebacks
Bank-level security and SCA improve risk outcomes.
✔ Faster settlement
Improves cash flow during peak trading periods.
✔ Alternative to declining or expiring cards
Removes the friction of stored card details becoming outdated.
✔ Ideal for subscriptions and marketplaces
VRPs and A2A provide flexible solutions for modern billing models.
Cardstream’s platform allows Partners to offer Open Banking payments directly through their White Labelled environments, giving Merchants the advantage of cutting-edge payment methods without building their own integrations.
The Role of Cardstream in the Future of Open Banking
As Open Banking continues to evolve throughout 2026, Cardstream is committed to supporting Partners with:
Open Banking is not just a trend; it is becoming a core part of the UK’s digital payment ecosystem. Through Cardstream’s platform, Partners and Merchants can confidently, securely, and at scale adopt this technology.
