What is NaudaPay?
NaudaPay is a UK-based open banking payment platform authorised and regulated by the FCA as a Payment Initiation Service Provider (PISP). It enables businesses to accept bank-to-bank payments directly from customers’ accounts — bypassing card networks — using the UK’s open banking infrastructure. NaudaPay’s services are used particularly in sectors where recurring or instant payments are needed, including financial services, e-commerce, and regulated industries.
How does NaudaPay work for businesses and consumers?
For businesses, NaudaPay provides an API and payment page that embeds into checkout flows or billing systems, allowing customers to pay by bank transfer in one or two clicks. The customer authenticates via their bank’s app or website, and funds arrive via Faster Payments — typically within seconds. For consumers, NaudaPay appears as a Pay by Bank option at checkout, requiring no card details and using bank-level security throughout.
Is NaudaPay safe and how does it relate to open banking?
NaudaPay is FCA-authorised as a PISP, meaning it operates under the Payment Services Regulations 2017 and must meet strict security, consumer consent, and data protection standards. It uses the UK Open Banking API standards maintained by Open Banking Ltd. Consumer payments initiated through NaudaPay are processed via Faster Payments and are subject to the PSR’s APP fraud reimbursement framework where applicable.
Open Banking in Practice: NaudaPay represents the growing category of specialist open banking payment providers that have emerged since the CMA’s 2016 mandate enabled third-party payment initiation. Other players in this space include GoCardless, TrueLayer, Volt, and Yapily. These providers are collectively reshaping UK payment infrastructure by offering cheaper, faster alternatives to card processing. Read more about open banking payment providers on openfuture.world.
FAQ
What are Noda payments?
Noda is a European open banking payment platform similar to NaudaPay, offering bank-to-bank payment initiation for merchants across the UK and EU using PSD2 and PSR APIs.
Is NaudaPay the same as open banking?
NaudaPay is a payment provider built on top of open banking infrastructure; it is an application of open banking PISP technology, not open banking itself.
Which businesses use NaudaPay?
NaudaPay serves a range of UK and European businesses seeking to offer bank-to-bank payment as a lower-cost, faster alternative to card payments at checkout.