HSBC: Why Payment Innovation Needs Trust, Scale & Simplicity

Real-time payments, open banking and AI-driven innovation are just some of the factors contributing to how money moves. And, because of these changes, the UK’s payments landscape is going through a phase of rapid transformation. 

Financial institutions are under growing pressure to deliver faster, more intuitive and highly secure payment experiences, while also helping to build the infrastructure and collaborative frameworks that will define the next generation of financial services.

At the centre of this evolution is Andrew Rankin, Chief Payments Officer at HSBC UK’s Consumer Banking division. 

Responsible for shaping payment services for millions of retail customers, Andrew oversees a broad remit spanning account-to-account transactions, cards, international payments and emerging digital capabilities. 

With a focus on balancing innovation with resilience, he also plays an active role in industry-wide efforts such as the National Payments Vision, helping to ensure that future payments ecosystems remain secure, scalable and firmly centred on customer needs.

In this Q&A with FinTech Magazine, Andrew discusses how HSBC is advancing payments innovation, the role of collaboration in delivering the National Payments Vision and what the future holds for real-time, customer-centric payment experiences.

What does success for the UK’s National Payments Vision look like over the next five years?

The UK has strong foundations, but a thriving economy needs brilliant customer payment journeys underpinned by next-generation payments infrastructure. 

If we get this right, it will provide a truly competitive ecosystem where banks, fintechs, merchants, PSPs, infrastructure providers and new entrants can all leverage modern capabilities to create innovative services.

Success, five years from now, looks like customers and businesses being able to pay and get paid more seamlessly, with greater choice, transparency and control – whether that’s in-store, online or in-app, and whether it’s domestic or cross-border. 

It also means a simpler, more resilient payments landscape with fewer points of friction, stronger protections and infrastructure that can scale safely as demand and threats evolve. 

Other countries have delivered these outcomes in the last five years and we believe HSBC is uniquely positioned to support the NPV by bringing our international connectivity and experience from those markets to the UK. 

How transformative could commercial Variable Recurring Payments (cVRP) be for consumers, businesses and the wider payments ecosystem?

Commercial Variable Recurring Payments have the potential to be one of the most significant developments in account-to-account payments. 

This is for two key reasons. Firstly, they give consumers more control over recurring payments while offering businesses a secure and efficient alternative to traditional payment methods. 

Secondly, they act as a catalyst to innovate because they are underpinned by equitable commercial terms which in turn drives innovation for customers. 

This means the industry can now truly realise the potential of open banking, delivering new use cases like A2A at Point of Sale to provide more customer choice.

As payments become increasingly real time, how do banks balance innovation with resilience and operational reliability?

Innovation and resilience aren’t competing priorities – they must evolve together.

Customers rightly expect payments to be instant, but they also expect them to be secure and reliable every time. That means investing continuously in modern infrastructure, cyber resilience and operational capabilities while introducing new services responsibly. 

It also means building safeguards that help prevent fraud without creating unnecessary friction. As the payments landscape becomes increasingly real time, collaboration across the industry becomes even more important.

Banks, non-banks, PSPs, fintechs, infrastructure providers and regulators all have a role in ensuring innovation strengthens the ecosystem rather than introducing unnecessary risk. 

Trust remains the foundation of every payment a customer completes.

Where do you see open banking creating the greatest commercial value beyond its initial use cases?

Open banking has already demonstrated its value in payments, but its longer-term opportunity lies in its introduction into customer payment journeys at scale and in enabling smarter financial experiences. 

In terms of new customer payment journeys, the obvious example is A2A at Point of Sale, but open banking could also play a large role in enabling new agentic led payment journeys for customers giving them new ways to pay via agents. 

This, when combined with open finance, could create new financial experiences whereby agents help a customer maximise their investment portfolio, move money between savings accounts to ensure they get the best rate or even suggest payment options when searching for a holiday.

The next phase isn’t simply about replacing existing payment methods, it’s about creating entirely new customer journeys that are simpler, more flexible and built around customer needs. 

Achieving that will require continued collaboration and a consistent approach across the ecosystem.

Which emerging technologies are most likely to have a meaningful impact on payments in the near term?

Artificial intelligence will likely have the most immediate impact, and in particular, customers will see new ways to pay – like agentic commerce – emerging. 

Behind the scenes it can also play a huge role in fraud prevention, customer support and operational efficiency. 

AI can help detect suspicious activity faster, personalise customer experiences and simplify complex payment journeys and reduce manual intervention. 

Alongside AI, we’ll continue to see growth in open banking and digital forms of money giving consumers and businesses greater flexibility.

The greatest impact will come from technologies that make payments faster, safer and more intuitive while maintaining the high levels of trust and security customers expect.

What role should banks, fintechs and regulators each play in accelerating innovation while maintaining customer trust and security?

Innovation works best when every part of the ecosystem plays to its strengths.

Fintechs bring agility and fresh thinking, banks provide trusted relationships, operational resilience and the ability to scale, while regulators create trust that enables innovation to flourish safely. 

Collaboration, trust and competition will be the defining factor in how successfully the UK continues to innovate in payments.

What are the biggest obstacles still preventing the UK from becoming a truly modern, account-to-account payments economy?

I believe there are three things we need to unlock for account-to-account payments to thrive. 

Number one is that we need an equitable commercial model that underpins account to account payments to ensure each part of the ecosystem is encouraged to innovate for the future. 

Number two is that customers need a compelling reason to use it. 

Cards are the predominate method of payment today, and to compete, account to account payments must deliver customer journeys that are simple, have embedded fraud capabilities and ensure good outcomes for customers and merchants.

Finally, there needs to be proportionate consumer protection in place to ensure we enable customer trust. Ultimately, modern account-to-account payments will succeed because they offer a better experience for consumers and businesses alike.

Looking ahead to 2030, what do you think will be the single biggest change in how consumers and businesses make and receive payments?

A lot can happen in five years, but I think the biggest change will be customer choice. This could manifest itself in many ways, including the emergence of agentic payments or digital forms of money that provide for interoperability and programmability.  

What will emerge will be driven by our customers, who aren’t focussed on the underlying rails – they are focussed on the outcome they are trying to achieve via simple, seamless journeys that are always on and underpinned by trust.