Navigating Payment Initiation Control in 2026

Table of Contents

Scope and approach

This article summarises and connects reporting and analysis from Finextra and other cited industry and legal sources on how control over payment initiation is evolving in 2026, with a particular focus on the Nordic payments market.

Nordic payments ecosystem faces new competitive landscape

  • Finextra says the Nordic fight is shifting from payment rails to the point where a transaction begins.
  • Banks, card networks, wallets, merchants and fintechs are competing to own the customer relationship, according to Finextra.
  • A2A payments are challenging cards, while embedded finance pushes initiation into apps and wallets, Finextra notes.
  • A&O Shearman highlights EU reforms (PSD3/PSR) aimed at better fraud controls and open-banking performance.

Definition of Payment Initiation Control

Key terms used in this article

  • Payment initiation: the step where a payment is started and authorised.
  • A2A (account-to-account): payments that move directly between bank accounts rather than via card rails.
  • Open banking payment initiation: initiation mediated through APIs and customer consent, typically with strong customer authentication (SCA).
  • PISP (payment initiation service provider): a regulated third party that can initiate payments from a user’s bank account via open-banking interfaces.

Payment initiation control is the ability to determine where, how, and by whom a payment is started and authorised—effectively, who “owns” the moment of checkout.

In the Nordic context, Finextra frames the contest as moving from rails to initiation, as payments shift into wallets, merchant apps, fintech platforms and embedded experiences. In open-banking models, control is mediated through APIs and customer consent, with strong customer authentication (SCA) used to approve initiation, according to Crassula.

Current Landscape of the Nordic Payments Ecosystem

Finextra describes the Nordics as entering a new era of competition, with banks, card networks, digital wallets, merchants and fintechs all trying to shape the payment experience and capture value. The strategic question is not only which rails win, but how the region balances European initiatives, domestic schemes and global networks while keeping consumer choice and resilience, according to Finextra. A&O Shearman notes EU-level modernisation via PSD3/PSR.

Competition Among Payment Stakeholders

What will decide which models gain scale?

Finextra’s framing implies that scale will be shaped by who controls the point of initiation and the customer relationship as payments move into wallets, merchant apps, fintech platforms and embedded experiences.

It also highlights the importance of maintaining trust, security, consumer choice and commercial value as initiation becomes more distributed across channels.

Competition Among Payment Stakeholders

Finextra argues the central battle is over the customer relationship: whoever controls initiation can influence method choice, user experience and economics.

Role of Banks and Financial Institutions

Banks are pressured to stay relevant as initiation moves beyond traditional channels, Finextra says. A&O Shearman reports that EU reforms aim to reinforce consumer control over permissions—areas where banks’ API quality and reliability become competitive levers.

Impact of Digital Wallets and Fintechs

Finextra points to wallets, merchant apps and embedded experiences as new “front doors” to payments. J.P. Morgan reports that 84% of consumers demand one-click checkout, a demand that favours intermediaries that can streamline initiation inside apps. Growth Market Reports adds that payment initiation APIs enable real-time, direct bank transfers, supporting fintech-led experiences.

Challenges Posed by Account-to-Account Payments

Finextra highlights A2A payments as a direct challenge to cards, raising the question of what determines scale in the Nordics. With more initiation happening in third-party experiences, trust and security become harder to anchor to a single institution, Finextra warns. FTI Consulting argues regulators increasingly expect fraud prevention to be designed into products, not bolted on after incidents—especially in real-time flows.

Future of Payments Infrastructure in the Nordics

Finextra says the region must balance open competition and global interoperability with strategic autonomy and resilient regional infrastructure.

Balancing Interoperability and Competition

A&O Shearman notes PSD3/PSR proposals, which can support interoperability. But Finextra cautions that as multiple schemes and networks evolve, governance choices will shape whether competition fragments the user experience.

Strategic Autonomy and Resilience

Finextra frames resilience as reducing dependencies while maintaining consumer choice. FTI Consulting adds that as innovation outpaces regulatory perimeters, firms must stress-test consent and liability models—particularly where initiation is delegated or automated.

Emerging Technologies Shaping Payment Initiation

Finextra identifies agentic commerce, tokenisation and AI-driven journeys as forces that challenge assumptions about who initiates and authorises payments.

AI-Driven Payment Journeys

Finextra warns that as payments become “invisible,” AI agents may initiate transactions on behalf of users, intensifying questions of trust and accountability.

FTI Consulting similarly emphasises that, as real-time and automated flows expand, firms are expected to embed fraud prevention into product design and to stress-test consent and liability models. Bratby Law reports the UK reform programme includes an AI agents workstream to address consent and control questions under the Payment Services Regulations framework.

Tokenisation and Its Implications

Finextra links tokenisation to a broader shift toward programmable, automated commerce. A&O Shearman notes EU reforms aim to merge payment and e-money frameworks for consistency—relevant as tokenised forms of value and new payment instruments blur traditional categories.

Vision for the Nordic Payments Model by 2030

Finextra says the Nordics are at a crossroads: the industry must decide what it wants the next decade to stand for—and who controls the payment experience of 2030. The near-term agenda implied by Finextra’s questions is pragmatic: protect consumer choice while enabling embedded experiences; build infrastructure that is open yet resilient; and ensure trust, authentication and accountability keep pace as initiation shifts from banks to apps—and increasingly to software agents.

Understanding Payment Initiation Control in 2026

The Regulatory Landscape

A&O Shearman reports the EU’s PSD3 and PSR proposals include stronger anti-fraud measures, improved information sharing, and steps to remove technical obstacles in open banking. Bratby Law reports the UK is pursuing reforms that expand the FCA’s role in open-banking oversight and address emerging issues like AI agents.

Technological Innovations in Payment Initiation

Growth Market Reports describes payment initiation APIs as enabling secure, real-time payments and supporting modern digital experiences. J.P. Morgan’s finding that 84% of consumers want one-click checkout helps explain why initiation control is migrating into wallets, merchant apps and embedded flows—exactly the shift Finextra says is redefining competition in the Nordics.

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