In a key move for the UK’s financial ecosystem, Open Banking Limited has announced that 31 organizations, including fintech TrueLayer, have committed to funding the establishment of an operator to advance commercial variable recurring payments (cVRPs).
This collaborative effort, encompassing high street banks, challenger banks, fintechs, and payment providers, represents a step toward realizing the UK Government’s National Payments Vision, which advocates for an industry-led approach to modernizing payment systems.
The initiative aims to harness the potential of cVRPs, a payment mechanism enabled by open banking technology.
Unlike traditional direct debits, cVRPs allow consumers to authorize recurring payments with greater flexibility and control, while businesses benefit from lower costs and enhanced security.
By leveraging open banking APIs, cVRPs facilitate seamless, real-time transactions directly from a customer’s bank account, reducing reliance on card networks and intermediaries.
This development aligns with the government’s aim to make “Pay by Bank” a payment method used across the UK.
The first phase of the cVRP initiative will prioritize key sectors, including utilities, rail, government services, and regulated financial services.
For consumers, this could mean simpler, more transparent ways to pay for household bills, train tickets, or taxes.
For businesses, cVRPs promise reduced transaction fees and improved cash flow management, as payments are settled instantly.
The focus on these sectors underscores the initiative’s goal of delivering tangible benefits to both individuals and organizations, paving the way for broader adoption in areas like subscriptions, e-commerce, and in-store payments.
TrueLayer, an open banking platform, claims that it is at the forefront of this transformation.
The company’s CEO, Francesco Simoneschi, emphasized the significance of the industry’s collective commitment:
“The Government’s National Payments Vision set a bold ambition for Pay by Bank to become ‘ubiquitous’, and today, the industry is answering that call. By uniting to fund a scheme operator, we’re laying the groundwork for Pay by Bank to power everything from utility bills and subscriptions to one-click checkouts and even in-store payments. This marks the beginning of a more open, competitive, and frictionless future for UK payments.”
TrueLayer’s involvement highlights its role as a key player focused on enabling open banking, with a track record of helping businesses to integrate secure, efficient payment solutions.
The company’s technology powers Pay by Bank for various merchants, offering a glimpse of the more seamless payment experiences that cVRPs could scale nationwide.
By participating in this initiative, TrueLayer is helping to shape the infrastructure and standards that will define the future of UK payments.
The establishment of a dedicated cVRP operator marks a pivotal moment for open banking adoption.
It signals a shift from experimentation to mainstream implementation, with the potential to reshape how consumers and businesses interact with financial services.
As the initiative progresses, the collaboration between fintechs like TrueLayer and traditional financial institutions will be crucial in ensuring that cVRPs deliver on their goal / objective of ensuring affordability, accessibility, and innovation.
This industry-led effort not only supports the government’s vision but also positions the UK as a global enabler of payment innovation.