January 23, 2025 – The UK’s open banking initiative continues to expand, with over 11.7 million active users and 22.1 million open banking payments made monthly. In 2024, significant strides were made, with voluntary funding from 20 major firms supporting developments in fraud analysis, consumer protections, and new services like variable recurring payments (VRPs).
VRPs will allow consumers greater control over their regular payments by enabling them to set payment amounts and frequency, helping reduce unexpected expenditure. This new service is expected to improve payment experiences for both consumers and businesses while enhancing competition and reducing processing fees.
As part of the next phase of open banking, Open Banking Limited will establish an independent central operator to manage VRPs. The operator will focus on enabling VRPs for payments to utility companies, government entities, and financial services firms, with the first services expected to go live in 2025.
The Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) are working closely together to ensure continued collaboration and industry engagement in advancing these developments.
