A group of 31 financial industry players have come together to fund the formation of an independent operator for commercial variable recurring payments (cVRPs) in the UK, Open Banking Limited (OBL) has announced.
The list of participating organisations, which includes a mix of fintechs, high-street banks, challenger banks and payment providers, features the likes of Lloyds Banking Group, Santander, NatWest, HSBC, Revolut and TrueLayer.
OBL says the agreement will see the formation of a new independent operator that will “carry forward work to establish cVRPs on a viable commercial footing” and will be wholly owned and operated by the industry.
cVRPs enable firms to initiate payments over the Faster Payments network using open banking technology. As opposed to initiating a single payment, cVRPs allow consumers to give their permission for a number of payments to be made within specific parameters.
Initial use cases are expected to focus on “selected regulated industries”, providing consumers with “better control over regular payments”, OBL says.
OBL adds a decision regarding the long-term funding of the entity will be made after this initial phase of work is completed.
The funding agreement reached between the 31 firms this week comes after UK regulators laid out their plans for the future of open banking in the country earlier this year.
The UK government published its National Payments Vision late last year, which detailed the government’s ambitions to advance open banking and account-to-account (A2A) payments.
Source: https://www.fintechfutures.com/
