The payments landscape in the UK and EU is shifting faster than ever - and this time, it’s businesses leading the charge.
Fintechs, neobanks, SaaS businesses, and platforms are all demanding faster, smarter, and more integrated ways to move money.
For those building the next generation of financial products, this isn’t just about keeping up with change - it’s about turning change into competitive advantage.
In this blog, we’ll explore the forces driving B2B payment innovation, why regulation is becoming a growth catalyst, how tech is transforming infrastructure, plus practical tips for building future-ready products.
The digital banking market in motion
Let’s start with the numbers:
♦️ 3 million people and businesses in the UK are now using open banking, with 31 million open banking payments in March 2025 alone - nearly 8% of all Faster Payments.
♦️78% of UK businesses say they plan to improve payment processes this year, and 94% believe simpler, more secure payments directly boost customer satisfaction.
♦️ In the EU, SEPA Instant will soon be mandatory for all euro-zone banks, meaning near-real-time euro transfers across the EU.
The takeaway?
Businesses expect instant, frictionless, and dependable payment experiences - and they're ready to move to providers who can deliver them.
What's driving digital banking innovation
User expectations are rising
B2B clients now expect the same speed and transparency they experience as consumers.
That means:
- Real-time payment status updates
- Flexible settlement and invoicing options
- Embedded finance tools built directly into platforms
For many SMEs and platforms, efficient digital banking isn't just a nice-to-have, it's a daily operational tool.
Regulation as a launchpad
It’s easy to view regulation as a hurdle. But right now, it’s acting as a market accelerator:
- PSD3 will refine access to account data and improve security while encouraging new product development.
- FIDA will open up richer datasets for personalised, automated financial services.
- Variable Recurring Payments (VRPs) are set to scale in the UK, opening up new automated payment models for B2B subscriptions, supplier settlements, and more.
- SEPA Instant is setting the standard for speed in euro transactions - which could be a competitive edge for those ready early.
The winners will be the ones who design with regulation in mind, not bolt it on later.
Technology is levelling the playing field
From cloud-native architecture to modular payment orchestration, infrastructure innovation is making it easier than ever to build scalable financial products.
Key enablers include:
- API-first design makes it easier to integrate new rails or features without a rebuild.
- Virtual cards for controlled corporate spend, projected to represent 4% of global B2B payment value by 2025.
- Real-time fraud detection powered by AI.
- Embedded finance infrastructure projected to be worth $124 billion globally by the end of 2025.
The business impact of digital banking innovation
For many UK and EU businesses, banking-like offerings are no longer just an operational necessity – they’re a competitive differentiator.
⚡Speed, flexibility, and transparency in B2B payments are becoming deciding factors in procurement and partnerships. Businesses want to know funds will land when expected - and providers who can guarantee that win trust (and contracts) faster.
💰 Overdue invoices remain a persistent issue, with UK businesses facing bad debt levels around 7% of total value. Slow settlement and manual processes don’t just hurt cash flow - they limit growth tying up working capital and creating missed opportunities.
🤝 Integrated payment experiences create sticker client relationships. Once a business has visibility, control, and reliability baked into its payments, it’s far less likely to switch providers.
In other words: when payments work seamlessly, they stop being a headache and start being a growth engine.
How fintechs and digital banks can build for the future
Building for the next era of B2B payments means making smart choices early.
Start with regulations 👉 Bake PSD3, FiDA, and AML/KYC requirements into your product from day one, so compliance becomes a selling point.
Prioritise modularity👉Pick tech stacks and partners that let you scale and enhance without the rebuild.
Focus on the experience 👉 Strip out the friction from the get-go, to give your clients a smart, modern, and straightforward experience.
Design for scale 👉 Choose infrastructure and partners that can grow with you, supporting higher volumes, new use cases, and evolving client demands without compromising performance.
The platforms that combine regulatory readiness, flexible tech, and a client-first mindset will be the ones shaping - not chasing – the future of digital banking and payments.
📢 Watch our on-demand webinar with thinkmoney to learn how you can simplify tech complexity and scale fast.
Final thoughts
The next chapter of UK & EU digital banking is being shaped right now - not in five years’ time.
For fintechs and digital banking builders, the opportunity lies in combining regulatory readiness, modular tech, and user-first design to deliver the seamless, secure, and scalable payment experiences that businesses now demand.
At Edenred Payment Solutions, we believe the future belongs to those who prepare early and build with purpose.
Building innovative digital banking products?
Get in touch with our team of experts to find out how we can support your journey to deliver digital banking experiences with confidence.
