Regulations

Story: UK Payments Initiative Launches cVRP Scheme to Shake Up Open Banking

By Jean-Luc Maracon

1 / 15

What cVRP Actually Changes. Variable recurring payments aren't new as a concept.

2 / 15

The FCA's Role and the Regulatory Road Ahead. The Financial Conduct Authority is backing the transition.

3 / 15

What Comes Next for the Payments Sector. The UKPI's first scheme is explicitly designed to attract competition.

4 / 15

The UK Payments Initiative just went live. And it's probably the biggest structural shake-up in British payments since open banking first took hold — at least on paper.

5 / 15

The UKPI's debut scheme targets commercial variable recurring payments, known as cVRP. That's the plumbing behind subscription services, utility bills, rent — basically any…

6 / 15

The scheme is industry-led. That's worth pausing on.

7 / 15

Rather than waiting for regulators to hand down a framework, the payments sector built this one itself.

8 / 15

Variable recurring payments aren't new as a concept. Open banking rails have technically supported them for a while.

9 / 15

For consumers, the pitch is control. Right now, cancelling or adjusting a direct debit can be a nightmare — wrong bank, wrong form, wrong department.

10 / 15

For businesses, it's speed and cost. Bank-to-bank payments via open banking rails are cheaper than card transactions.

11 / 15

The UKPI's launch doesn't guarantee any of that happens overnight. It's a framework, not a magic switch.

12 / 15

Read also: eToro Targets 2 Wealth-Tech Deals and a Banking License After Nasdaq Debut

13 / 15

The Financial Conduct Authority is backing the transition. The FCA has been working toward a standards-setting body — an independent entity that would set the rules of the road…

14 / 15

Consultations on a long-term regulatory framework are expected by end of 2026, though that timeline is contingent on new legislative powers coming through.

15 / 15

Open finance is the bigger ambition here. Open banking was about sharing payment account data. Open finance goes further — mortgages, pensions, investments, insurance.

The Currency Analytics

Want the full story?