Understanding NaudaPay: The Future of Payments in 2026

Table of Contents

• 1. NaudaPay streamlines bank-to-bank payments for businesses
• 2. Overview of NaudaPay and Its Regulatory Framework
• 2.1 Regulatory status (UK)
• 3. How NaudaPay Facilitates Bank-to-Bank Payments
• 4. Key Features of NaudaPay’s Payment Solutions
• 4.1 API Integration for Businesses
• 4.2 Consumer Experience with Pay by Bank
• 5. Compliance and Security Standards in Open Banking
• 6. Market Applications of NaudaPay in Various Sectors
• 7. The Role of Faster Payments in NaudaPay’s Operations
• 8. NaudaPay’s Position in the Open Banking Ecosystem
• 9. The Future of NaudaPay in the Open Banking Landscape
• 9.1 Navigating Regulatory Challenges
• 9.2 Opportunities for Growth Beyond the UK

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NaudaPay streamlines bank-to-bank payments for businesses

NaudaPay UK Service Update
NaudaPay is a UK-based “Pay by Bank” (account-to-account) payment initiation provider built on open banking rails.
Who it’s for: merchants that want bank-to-bank checkout (API or hosted payment pages) instead of—or alongside—cards.
UK status note (2026): NaudaPay announced an orderly wind-down of UK operations, with support continuing for existing customers.

• NaudaPay is a UK-based open banking payment platform authorised by the FCA as a Payment Initiation Service Provider (PISP).
• It lets merchants accept account-to-account payments that bypass card networks, typically settling in seconds via Faster Payments.
• Businesses integrate via API or hosted payment pages; consumers authenticate in their own banking app with bank-level security.
• In 2026, NaudaPay announced an orderly wind-down of UK operations while maintaining support for existing customers.

In practical terms, this has been described as ceasing onboarding of new UK customers and not accepting or facilitating new payment initiation transactions in the UK, while continuing to support existing customers and process refunds, returns, and chargebacks as usual.

Overview of NaudaPay and Its Regulatory Framework

NaudaPay is a London-headquartered open banking payments provider that enables bank-to-bank (account-to-account) payments for merchants.

Regulatory status (UK)

NaudaPay Limited is FCA-authorised as a Payment Initiation Service Provider (PISP) (firm reference number 832969) and operates under the Payment Services Regulations 2017. In practical terms, it sits on top of the UK’s open banking rails and offers businesses a way to take payments directly from a customer’s bank account—without routing the transaction through card networks.

Verified UK Payment Initiation Facts
Regulatory anchors readers can verify:

• FCA authorisation: NaudaPay Limited is listed as a regulated firm (PISP) on the FCA register (FRN 832969).
• Legal basis: Payment initiation in the UK is governed by the Payment Services Regulations 2017 (PSR 2017).
• Technical standards: UK Open Banking API standards are maintained by Open Banking Ltd and used across regulated providers.
• Settlement rail (UK): initiated payments commonly complete via Faster Payments, which is why “seconds” settlement is often achievable.

Regulation is central to how NaudaPay operates. In the UK, it operates under the Payment Services Regulations 2017. That status matters because it defines what the firm can do (initiate payments with a customer’s permission) and what it must do (meet requirements around security, consent, and data protection).

In that sense, NaudaPay is not “open banking” itself; it is an application built on open banking infrastructure.

By mid-2026, NaudaPay is also described as operating under the Noda brand and having activity beyond the UK, including Europe and Brazil—an important context given the company’s strategic shifts in 2026.

How NaudaPay Facilitates Bank-to-Bank Payments

NaudaPay’s core proposition is straightforward: it helps businesses accept payments directly from customers’ bank accounts using open banking payment initiation. Instead of entering card details, the customer selects a Pay by Bank option and authorises the payment through their own bank.

For merchants, NaudaPay typically plugs into existing checkout flows or billing systems through an API and/or a hosted payment page. The goal is to reduce friction at the moment of payment: the customer is redirected (or prompted) to authenticate via their bank’s app or website, and the payment is initiated once consent and authentication are completed.

From the consumer perspective, the experience is designed to be minimal: no card number, no expiry date, no CVV—just bank authentication. That authentication step is significant because it keeps the sensitive login and approval process within the bank’s environment, rather than pushing credentials into a merchant site.

Pay by Bank Flow Overview
A typical “Pay by Bank” flow (with practical checkpoints):
1) Merchant selects integration path: API (embedded checkout) or hosted payment page.
2) Customer chooses Pay by Bank at checkout.
3) Bank selection + consent: customer picks their bank and explicitly authorises the payment.
4) Strong Customer Authentication (SCA): customer approves in their bank app/website (the bank handles the authentication step).
5) Payment initiation: the PISP submits the payment instruction via open banking APIs.
6) Confirmation + status: merchant receives a success/fail/pending status (checkpoint: handle “pending” and timeouts cleanly).
7) Settlement via Faster Payments (UK): funds typically arrive within seconds (checkpoint: reconcile using reference/transaction IDs, not just “paid” screens).

Once authorised, funds are transferred via the UK’s Faster Payments scheme. This “real-time” feel is one reason Pay by Bank has gained traction as an alternative payment method: it combines speed with a direct account-to-account route.

NaudaPay’s model is especially relevant in scenarios where businesses want instant confirmation, recurring-like payment flows, or a card-free alternative in regulated or higher-scrutiny industries.

Key Features of NaudaPay’s Payment Solutions

NaudaPay’s product set is built around open banking connectivity and merchant usability. At the heart of it is payment initiation—often presented as a Pay by Bank button at checkout—designed to bypass card networks and move money directly between bank accounts.

Beyond the basic payment initiation flow, NaudaPay has been associated with a broader suite of tools under the Noda brand. Reported launches and capabilities include AI-powered, no-code payment pages aimed at improving user experience and conversion, QR payment solutions for offline merchants in the UK, and merchant-focused orchestration that can combine registration, KYC, and payment processing.

This emphasis on “packaging” open banking into merchant-ready components is a key differentiator in a crowded market. Many businesses don’t want to assemble bank connectivity, compliance workflows, and payment UX from scratch; they want a product that drops into their checkout and back office with predictable behaviour.

NaudaPay has also highlighted advanced KYC tools for online merchants, reflecting a focus on onboarding and compliance—areas that can become bottlenecks when payments intersect with regulated activity or elevated fraud risk.

Taken together, the feature set points to a platform strategy: not just initiating a payment, but supporting the operational realities around it—customer journeys, merchant integration, and compliance processes—while keeping the consumer experience anchored in bank authentication.

API Integration for Businesses

For businesses, NaudaPay’s integration story centres on an API and payment pages that can be embedded into checkout flows or billing systems. The practical outcome is that merchants can present Pay by Bank as a payment method alongside—or instead of—cards, while keeping control of the customer journey.

API-driven integration is particularly relevant for companies with custom checkout experiences, subscription-like billing logic, or complex reconciliation needs. While the consumer sees a simple “pay from bank” flow, the merchant needs reliable initiation, status updates, and a clean handoff between the payment step and order fulfilment.

NaudaPay’s broader merchant tooling—such as orchestration that combines registration, KYC, and payment processing—signals an attempt to reduce integration sprawl. Rather than stitching together multiple vendors for onboarding and payments, merchants can potentially centralise key steps in one platform.

The company has also promoted no-code, AI-powered payment pages aimed at SMEs and creators. Even when a business doesn’t want a deep API build, hosted payment pages can provide a faster route to launch, while still using open banking rails underneath.

Consumer Experience with Pay by Bank

For consumers, NaudaPay typically appears as a Pay by Bank option at checkout. The defining feature is that the customer does not enter card details; instead, they authenticate and approve the payment through their own bank’s app or website.

That design leans on bank-level security and the open banking consent model: the payment is initiated only after the customer authorises it, and the sensitive authentication step stays within the bank’s environment. In practice, this can reduce exposure to card-data handling in the checkout flow.

Speed is part of the experience. Once approved, funds are sent via Faster Payments and usually arrive within seconds, giving both the customer and the merchant near-immediate confirmation.

NaudaPay’s approach also fits consumers who prefer not to use cards online or who want a more direct payment route. The “one or two clicks” framing reflects the industry push to make bank transfers feel as seamless as card payments—without requiring customers to manually set up a transfer or copy bank details.

Compliance and Security Standards in Open Banking

Open banking payments only work at scale if trust is built into the model. NaudaPay’s FCA authorisation as a PISP places it inside a regulatory perimeter designed to enforce that trust—particularly around consent, security controls, and data protection.

Open Banking Payment Safety Basics
A practical way to think about open banking security (what has to be true for a payment to be “safe enough”):

• Consent: the customer explicitly approves the payment; consent is scoped (who, what, how much) and time-bound.
• Authentication (SCA): the bank performs the login/approval step in its own app or website.
• Data access boundaries: the provider should only access what’s needed to initiate the payment and confirm status.
• Fraud & scams reality: bank-to-bank speed reduces “payment pending” uncertainty, but it doesn’t automatically prevent APP scams—controls still matter (payee checks, monitoring, customer warnings, and clear dispute paths).

Operating under the Payment Services Regulations 2017 means NaudaPay must follow rules on how payment initiation is performed and how customers are protected. In open banking, consent is not a marketing checkbox; it is a functional requirement. The customer must explicitly authorise the payment, and authentication is performed through the bank’s own channels.

NaudaPay also uses the UK Open Banking API standards maintained by Open Banking Ltd. Standardisation matters because it reduces the variability of bank integrations and sets expectations for security and data handling across the ecosystem.

Fraud is an unavoidable part of the conversation. Payments initiated through NaudaPay are processed via Faster Payments and, where applicable, fall under the Payment Systems Regulator’s APP (Authorised Push Payment) fraud reimbursement framework. That framework has become a key reference point in the UK as regulators and industry respond to evolving scam typologies.

NaudaPay’s launch of advanced KYC tools and its emphasis on compliance-oriented orchestration reflect the broader trend: open banking providers are increasingly expected to pair payment initiation with stronger identity, onboarding, and risk controls as scrutiny tightens.

Market Applications of NaudaPay in Various Sectors

NaudaPay is positioned for sectors where instant confirmation, recurring-like payment patterns, or reduced reliance on card networks are valuable. The platform is described as being used particularly in financial services, e-commerce, and regulated industries—categories that share a need for reliable payment execution and clear audit trails.

In e-commerce, Pay by Bank can function as a lower-cost, faster alternative to card processing. For merchants, that speed can support quicker fulfilment decisions and reduce the operational lag between “payment made” and “funds received.”

In financial services, the appeal is often the combination of direct account-to-account movement and bank-authenticated approval. When customers are moving money into accounts, topping up balances, or paying for services, the ability to initiate a transfer without card rails can be operationally attractive.

Regulated industries—where onboarding, identity checks, and compliance workflows are more demanding—are another natural fit. NaudaPay’s reported focus on KYC tooling and orchestration that combines registration, KYC, and payment processing suggests it is targeting merchants that need more than a simple checkout button.

NaudaPay’s product expansion also points to omnichannel use cases. QR payment solutions for offline merchants in the UK indicate a push beyond pure online checkout, aligning with the broader shift toward alternative payment methods that work across in-person and digital contexts.

The Role of Faster Payments in NaudaPay’s Operations

Faster Payments is the engine that makes NaudaPay’s UK proposition feel “instant.” While open banking provides the permissioning and initiation layer, Faster Payments provides the settlement pathway that typically moves funds within seconds.

Benefits and Remaining Gaps
What Faster Payments improves (and what it doesn’t):

• Improves: speed to funds, near-real-time confirmation, fewer “bank transfer pending” support tickets, faster fulfilment decisions.
• Doesn’t automatically solve: APP scams/social engineering (a fast payment can still be a wrong payment), merchant-side reconciliation issues if references are inconsistent, or disputes that require investigation.
• Practical implication: merchants still need clear payment status handling, reconciliation logic, and a customer support path for mistaken or disputed transfers.

This matters because it changes the merchant experience of bank transfers. Traditional bank transfers can be slow or operationally cumbersome, often requiring manual steps and delayed confirmation. By contrast, a Faster Payments-backed Pay by Bank flow can deliver near-real-time payment confirmation, which is crucial for digital commerce and time-sensitive services.

For consumers, Faster Payments supports the expectation that a bank transfer can be as immediate as a card payment—without entering card details. For merchants, it can reduce uncertainty around whether a payment has been made and can speed up downstream processes like order processing or service activation.

NaudaPay’s reliance on Faster Payments also ties it to the UK’s broader payments policy environment. Because payments initiated through NaudaPay are processed via Faster Payments, they intersect with UK consumer protection discussions, including the APP fraud reimbursement framework where applicable.

In short, Faster Payments is not just a technical rail in NaudaPay’s stack; it is a core part of the product promise: bank-to-bank payments that are fast enough to compete with cards in everyday checkout scenarios.

NaudaPay’s Position in the Open Banking Ecosystem

NaudaPay sits in a growing category of specialist open banking payment providers that emerged after the UK’s open banking reforms. It is often discussed alongside other players offering payment initiation and Pay by Bank experiences, including GoCardless, TrueLayer, Volt, and Yapily—firms collectively pushing account-to-account payments as a mainstream alternative to card processing.

By mid-2026, NaudaPay is described as having built broad bank connectivity under the Noda brand—connecting to more than 2,000 banks across 28 countries by August 2025—supporting a strategy that extends beyond the UK into Europe and Brazil. That international footprint aligns with the wider global trend: by 2026, open banking frameworks are in place or under development in more than 60 countries, and adoption continues to rise.

In the UK specifically, open banking usage has scaled to 16.5 million people, with one in three adults actively engaging with open banking services. That adoption creates a larger addressable market for Pay by Bank products—provided the user experience is smooth and merchants see clear operational benefits.

Yet NaudaPay’s position in 2026 is also shaped by a major strategic inflection point. The company has ceased onboarding new customers in the UK and is not accepting or facilitating new payment transactions there, while continuing to support existing customers and process refunds, returns, and chargebacks as usual. The move, alongside brand separation between NaudaPay Limited and Noda, underscores how regulatory pressure and competitive intensity can reshape even fast-growing fintechs.

The Future of NaudaPay in the Open Banking Landscape

NaudaPay UK Operations Update
Update (publicly reported in 2026): NaudaPay announced an orderly wind-down of UK operations.
What that has meant in practice: no new UK customer onboarding and no new UK payment initiation, while existing customers continue to receive support and operational items like refunds, returns, and chargebacks continue to be processed.
If you’re evaluating NaudaPay from the UK: the key question is whether you need a provider for new payment initiation now, or primarily ongoing support for historical activity.

Navigating Regulatory Challenges

NaudaPay’s 2026 UK wind-down places regulatory and risk management realities at the centre of its story. Open banking providers operate in an environment where expectations around compliance, fraud prevention, and operational resilience have been rising, with heightened scrutiny on risk controls and consumer protection.

The company’s approach—maintaining support for existing customers while stopping new onboarding and new payment initiation in the UK—signals an attempt to manage the transition in an orderly way. It has stated that refunds, returns, and chargebacks continue to be processed, which is critical for preserving trust during a wind-down.

At the product level, NaudaPay’s emphasis on advanced KYC tools and compliance-oriented orchestration reflects the direction of travel across the sector: payment initiation alone is no longer enough. Providers are increasingly expected to pair payments with stronger identity, monitoring, and governance capabilities as fraud typologies evolve and regulators respond.

Opportunities for Growth Beyond the UK

While the UK has been a flagship market for open banking, NaudaPay’s broader footprint suggests it has been preparing for growth elsewhere. Under the Noda brand, it has reported connectivity to thousands of banks across dozens of countries, and it expanded its open banking network to Brazil in 2024—an indicator of ambition beyond Europe’s core markets.

International expansion also aligns with the macro trend: open banking frameworks are proliferating globally, and local payment preferences shape how account-to-account methods compete. In parts of Europe, consumers already use established bank-linked payment methods (such as iDEAL in the Netherlands, Swish in Sweden, and BLIK in Poland), creating a landscape where open banking providers can position themselves as connectors and orchestrators rather than single-rail payment tools.

For NaudaPay, the opportunity is to translate what worked in the UK—fast settlement, bank-authenticated approval, and merchant-friendly integration—into markets where adoption is accelerating and where strategic partnerships can help overcome fragmentation. The challenge, as always in payments, is executing across different regulatory regimes while maintaining consistent security and user experience.

Perspective: This analysis is written from a payments-and-platform implementation lens shaped by Martin Weidemann’s work building and scaling fintech/payment systems and operating in regulated, multi-stakeholder environments across Latin America.

This article reflects publicly available information at the time of writing. Product availability, regulatory status, and service coverage in payments can change quickly, so confirm current onboarding and transaction support through official channels. Market size and adoption figures are estimates that may vary by source and may be updated as new information emerges.