The FCA and PSR have revealed plans to accelerate adoption of variable recurring payments. The UK regulators view is that variable recurring payments will help consumers to take greater control of their regular payments.
Specifically, giving customers control over how much can be paid at one time or over the course of a month will reduce the risk of unexpected expenditure.
For businesses, variable recurring payments offer greater competition to current payment methods and could help reduce processing fees. They could also increase the proportion of customers who complete a payment, through better user experiences.
As part of the next steps to deliver variable recurring payments, Open Banking Limited will play a key role in establishing an independent central operator to coordinate how variable recurring payments are made.
VRP services will be available for consumers to make recurring payments to utility companies, government and financial services firms.
Last week, the FCA wrote to the Prime Minister and Chancellor to say that, “certainty and predictability underpin business and investor confidence.” Today’s statement is welcome clarity that an independent central operator for variable recurring payments (VRPs) will be created. We need the regulators and industry to pull in the same direction now and work out how this will be done successfully with a view to launching VRPs as early as possible this year.
The focus on Variable Recurring Payments (VRP) is particularly exciting. It is clear from the UK’s National Payments Vision that continued success in account-to-account (A2A) payments and the development of VRP are critical for driving the UK’s digital innovation and economic growth agenda.
VRP is a breakthrough providing consumers and businesses with an innovative and long-awaited alternative for seamless, flexible and competitive e-commerce payments, underpinned by a sustainable commercial model for banks.
We are pleased the FCA and PSR have come to a decision on who will drive forward the development of the cVRP MLA Operator. We look forward to working with OBL, UK Finance and the wider ecosystem to shape the Operator over the coming months. Progress in this regard is crucial, along with the development of the commercial model and decision on bank participation, to launching Wave 1 use cases later this year. Ultimately, it is key to get going so that we can make crucial learnings that will enable us to progress to e-commerce use cases in 2026.
https://media.zenfs.com/en/retail_banker_international_407/60d11827da05652744ab5fbb14b1e2c3
2025-01-26 12:51:29
