February 2026 Payments Industry Roundup
February has seen continued focus on pricing transparency, payment resilience and the accelerating evolution of account-to-account payments. As cost pressures remain across UK sectors, payment performance is becoming a board-level priority rather than a back-office function.
February has seen continued focus on pricing transparency, payment resilience and the accelerating evolution of account-to-account payments. As cost pressures remain across UK sectors, payment performance is becoming a board-level priority rather than a back-office function.
Below is Payment Lynk's February summary of the developments shaping the payments landscape.
Interchange and Scheme Fee Scrutiny Continues
Ongoing adjustments from global networks including Visa and Mastercard are keeping interchange and scheme fees firmly under review. While individual updates may appear incremental, cumulative impacts across high volume merchants can materially influence effective blended rates.
Merchants operating on legacy pricing agreements may find that margin creep has developed gradually over time, particularly where reporting lacks transparency.
Commercial takeaway:
Open Banking Adoption Accelerates in Mid Market
Open Banking volumes continue to grow across retail, travel and professional services as merchants look to reduce transaction costs on higher value payments.
The commercial appeal remains clear:
However, adoption remains strongest when implemented as part of a structured payment strategy rather than as a standalone cost exercise. User experience, reconciliation processes and refund workflows remain critical to successful implementation.
Payment Resilience Remains a Strategic Priority
February discussions across the industry have highlighted the operational risk of single provider dependency. Outage events in recent years have reinforced the importance of secondary acquiring or gateway capabilities.
Businesses increasingly recognise that resilience is not simply about having a backup contract in place. True resilience requires:
Revenue protection and uptime continuity are now central to payment strategy conversations.
IC++ vs Blended: Transparency Debate Grows
Following increased scrutiny on scheme costs, more merchants are reviewing whether IC++ or blended pricing structures remain appropriate.
The conversation has shifted from simplicity versus complexity to control versus opacity.
High turnover businesses with varied card mix are revisiting IC++ structures for improved benchmarking visibility. Meanwhile, smaller merchants continue to favour blended pricing for predictability.
Understanding effective rate, not headline rate, is emerging as the critical metric.
Payment Lynk Comment
"Across February we have seen a clear pattern. Businesses are no longer accepting payment costs as fixed overhead. They are asking structured questions around transparency, resilience and commercial optimisation.
In our experience, small percentage improvements create meaningful annual savings. The key is aligning pricing structure with turnover profile, sector behaviour and long-term growth strategy."
Looking Ahead to March
As we move into Q2 planning cycles, we expect to see:
Payment performance is now directly linked to commercial performance. Businesses that actively review their payment infrastructure will be better positioned to protect margin and drive operational efficiency.
Request a Payment Performance Review and discover how Payment Lynk can help you optimise your payment infrastructure for improved acceptance rates, reduced costs and enhanced resilience.
Across February we have seen a clear pattern. Businesses are no longer accepting payment costs as fixed overhead. They are asking structured questions around transparency, resilience and commercial optimisation. In our experience, small percentage improvements create meaningful annual savings.Payment Lynk
Frequently Asked Questions
What is driving payment cost increases for UK businesses in 2026?
The primary drivers are cumulative scheme fee adjustments from Visa and Mastercard, legacy pricing agreements that have not been reviewed, and increased volumes of commercial and cross-border card transactions. These factors raise effective costs under both blended and IC++ structures, often without businesses realising the impact.
How can UK businesses improve payment resilience in 2026?
Payment resilience requires a tested secondary payment route that can be activated quickly in the event of a primary provider outage. This typically involves a second acquiring relationship or gateway integration. Most businesses underinvest in resilience until they experience a significant outage. An independent review can assess your current resilience position.
What should UK businesses prioritise for payment performance in 2026?
Three areas are consistently delivering value: pricing structure review (IC++ vs blended), acceptance rate optimisation, and Open Banking for relevant high-value transaction types. Businesses addressing all three systematically tend to see the most material improvements to both cost and revenue performance.
Optimise Your Payment Performance
If you would like to understand how your payment infrastructure is performing against current market benchmarks — on cost, resilience and acceptance rates — Payment Lynk can provide an independent review tailored to your business.
Request a Payment Performance Review