In a major step forward for the UK’s Open Banking ecosystem, a consortium of 31 major players spanning fintechs, incumbent banks and payment platforms has committed funding to establish a new industry-led company tasked with delivering commercial Variable Recurring Payments (cVRPs).
The initiative aims to bring VRPs – a next-generation payments mechanism enabling consumers to authorise ongoing payments from their bank account with variable amounts and timing – into regulated commercial use.
These payments, already enabled for sweeping between accounts, have long been viewed as a crucial evolution of the Open Banking proposition.
Now, after growing calls from policymakers and regulators, the market is taking the lead.
Backing cVRPs
Backers of the new entity include some of the most influential names in UK and global payments, among them Barclays, Mastercard, GoCardless, Monzo, Plaid, Revolut and Wise.
Additional participants span the ecosystem, such as Acquired.com, Token.io, Nationwide, Moneyhub, NatWest Group, Yapily and TrueLayer.
Initial use cases for cVRPs will focus on selected regulated sectors, including utilities, rail travel, e-money providers, financial services firms, government bodies and charities.
Supporters argue that enabling cVRPs in these areas will not only offer consumers greater transparency and control over regular payments but also pave the way for more seamless checkout experiences and enhanced competition in payments.
National Payments Vision
The project stems from a call to action issued by the UK government in its National Payments Vision published in late 2023.
That roadmap urged the industry to take the reins in making cVRPs a reality, positioning them as central to the broader ambition of making Pay by Bank ubiquitous across UK commerce.
“This is a significant moment for the industry,” said Henk Van Hulle, CEO of Open Banking Limited (OBL), which announced the formation of the group.
“It is testament to the collaborative nature of our ecosystem that it can be industry-led.”
Van Hulle noted that while this first phase is fully funded by the founding members, decisions about long-term governance and financing will follow later this year.
Industry leaders hailed the move as a critical inflection point.
“The industry has put its money where its mouth is,” said Tom Burton, director of external affairs at GoCardless. “We’re creating a new operator to drive the rollout of commercial VRPs, bringing us closer to more innovation and consumer choice.”
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