The FCA and PSR have revealed plans to speed up 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 might be paid at one time or over the course of a month will reduce the danger of unexpected expenditure.
For businesses, variable recurring payments offer greater competition to current payment methods and will help reduce processing fees. They might also increase the proportion of consumers who complete a payment, through higher user experiences.
As a part of the following 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 can be available for consumers to make recurring payments to utility firms, 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) can be created. We’d like the regulators and industry to drag in the identical direction now and work out how this can be done successfully with a view to launching VRPs as early as possible this yr.
The give attention to Variable Recurring Payments (VRP) is especially exciting. It is obvious from the UK’s National Payments Vision that continued success in account-to-account (A2A) payments and the event 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 progressive and long-awaited alternative for seamless, flexible and competitive e-commerce payments, underpinned by a sustainable industrial model for banks.
We’re pleased the FCA and PSR have make a decision on who will drive forward the event of the cVRP MLA Operator. We sit up for working with OBL, UK Finance and the broader ecosystem to shape the Operator over the approaching months. Progress on this regard is crucial, together with the event of the industrial model and decision on bank participation, to launching Wave 1 use cases later this yr. Ultimately, it is vital to get going in order that we are able to make crucial learnings that may enable us to progress to e-commerce use cases in 2026.