How APIs, Automation, and Instant Payments Will Shape UK in 2025

Introduction: A New Era for Payments in the UK

The UK’s payment processing landscape is undergoing a radical transformation in 2025, driven by technological advancements and the increasing need for speed, automation, and scalability. As digital adoption grows across businesses of all sizes, there is a distinct shift away from traditional, siloed payment models towards intelligent, integrated financial ecosystems.

At the heart of this evolution are innovations such as application programming interfaces (APIs), real-time settlements, open banking capabilities, and batch payment automation. These tools empower businesses to streamline operations, enhance accuracy, and reduce processing costs while remaining compliant and responsive to consumer expectations.

In this article, we examine four key trends shaping the future of UK payments: the rise of APIs and embedded finance, the continuing relevance of bulk and batch payments, the demand for instant transfers, and the overall expansion of the UK’s digital payment ecosystem.

1. APIs and Embedded Financial Services: Powering the Digital Economy

APIs have become the foundation for modern payment infrastructure. They enable businesses to connect financial services directly into their workflows, whether for collecting payments, initiating disbursements, or reconciling accounts in real time.

BaaS (Banking-as-a-Service) providers like OpenPayd are leading the charge by offering modular payment APIs that allow companies to access virtual IBANs, handle multi-currency FX conversions, and route payments through Faster Payments, SEPA, or SWIFT networks—all without building custom banking infrastructure from scratch.

Similarly, companies such as Wonderful are offering API-powered, open banking-enabled payment solutions tailored for small businesses, charities, and e-commerce platforms. These solutions enable direct bank-to-bank payments, bypassing costly card networks while delivering instant confirmation and settlement.

Beyond payments, these APIs also facilitate tighter integrations with financial software. For instance, Wonderful’s Xero integration allows merchants to import customer data, send payment requests, and automatically reconcile transactions—reducing admin work and boosting real-time visibility across accounts.

The result? Businesses can build seamless customer experiences while scaling efficiently and keeping costs low.

2. Bulk and Batch Payments: Still Essential in a Real-Time World

Despite the growing appeal of real-time transactions, bulk and batch payment processing continues to be a core function for businesses with regular high-volume disbursement needs. Whether it’s payroll, vendor settlements, charitable grant distribution, or affiliate payments, the ability to process hundreds—or thousands—of transactions in one go is essential for operational efficiency.

The Bacs Direct Credit system, a cornerstone of UK business payments, processed over 2.2 billion transactions in 2023 alone. It remains favoured for its reliability, low fees, and suitability for scheduled, repeat payments.

Modern platforms have brought fresh capability to this long-standing model. Providers such as Xero and Stripe offer built-in batch processing tools, enabling SMEs and larger organisations alike to combine multiple payments into single submissions. This reduces the administrative burden and processing fees compared to executing each payment individually.

For global businesses and those working with distributed teams or international vendors, solutions like MultiPass allow bulk payments across more than 70 currencies. Meanwhile, platforms such as Wise and Payoneer simplify payouts to freelancers, suppliers, and partners around the world—with APIs for full automation and visibility.

Charities, in particular, benefit from these systems. Using providers like Wonderful, they can quickly disburse funds to multiple recipients while integrating donor management and accounting systems—an approach that enhances transparency and reduces time spent on back-office tasks.

3. Real-Time and Instant Transfers: Meeting the Demand for Speed

The bar has been raised for payment speed. Instant payments are no longer a luxury—they are expected by consumers, employees, and suppliers alike.

The UK’s Faster Payments Service (FPS) is a vital part of this infrastructure, capable of processing up to £1 million per transaction, 24/7, with most transfers clearing in seconds. In 2024 alone, over 5 billion transactions totalling £4.2 trillion were processed via FPS, underscoring the growing reliance on real-time payment rails.

From ride-hailing platforms instantly paying drivers to online retailers issuing immediate refunds, real-time payments enhance customer satisfaction, improve liquidity, and reduce support queries related to payment delays.

The momentum extends beyond UK borders. In January 2025, the EU's instant payment regulation takes effect, requiring banks to process euro transfers within 10 seconds. While UK businesses are no longer bound by EU regulations post-Brexit, those dealing with European partners must adapt to meet these new standards.

Fintechs such as Wise and Revolut Business are already offering SEPA Instant Credit Transfer capabilities to help UK firms remain compliant and competitive in the pan-European market.

4. The Growth of the UK Digital Payments Ecosystem

The widespread adoption of APIs, batch processing, and open banking has significantly contributed to the growth of the UK’s digital payment ecosystem. According to IBISWorld, the market is forecast to reach £9.7 billion by 2025, with a compound annual growth rate of 6.6%.

Several forces are fuelling this expansion:

• Increased adoption of contactless and mobile payments by consumers.
• A growing demand for integrated payment and accounting platforms.
• Stronger emphasis on fraud prevention and regulatory compliance.

Integrated payment solutions that support automated reconciliation, real-time analytics, and seamless user experiences are now crucial tools for businesses seeking agility and scalability.

Startups and SMEs, in particular, are seeing transformative gains. By using batch payment APIs, they can handle supplier payments in seconds. Through open banking, they can receive customer payments instantly without needing to manage card infrastructure or fees. All of this combines into a frictionless, data-rich ecosystem where finance teams operate with greater accuracy and less manual work.

Conclusion: The Shift to Programmable, Intelligent Payments

As 2025 unfolds, the UK’s payment landscape is being redefined not just by technology but by how businesses think about money movement. Payments are no longer a back-office function—they are a strategic layer that can drive efficiency, improve customer experiences, and support global expansion.

Businesses that want to thrive in this evolving landscape must embrace programmable payment infrastructure powered by APIs, instant rails, and intelligent automation.

Payment service providers like Wonderful, Form3, Stripe, and OpenPayd are building this new future—where payments are embedded, real-time, secure, and cost-efficient. Whether you're a startup needing a reliable way to pay global freelancers, a charity streamlining donation disbursement, or a retailer simplifying checkout flows, the tools are already here.

Those who integrate now will be tomorrow’s leaders.