A coalition of 31 UK financial institutions and fintechs has pledged to fund the launch of a new entity aimed at delivering Commercial Variable Recurring Payments (cVRPs) at scale. The initiative is designed to accelerate the adoption of VRPs, a key open banking feature that enables customers to authorise secure, flexible payment instructions for variable amounts or frequencies within set limits.
This collaborative move follows the UK government’s call for industry-led solutions to ensure the timely delivery of cVRPs. The new company will be industry-owned and operated, with backing from major players such as Barclays, GoCardless, Mastercard, Monzo, Plaid, Revolut, and Wise.
VRPs are poised to modernise recurring payments by offering an alternative to direct debits with more control, security, and flexibility for consumers. The first rollout phase will target regulated industries, including utility providers, rail operators, financial institutions, e-money services, government departments, and charities.
The goal is to build a frictionless, consent-driven payment experience for users making repeat payments online. Consumers will benefit from a simplified process for managing recurring payments, while businesses can streamline payment collection.
Henk Van Hulle, CEO of Open Banking Limited, commented:
“This is a significant moment for the industry, and I sincerely thank the organisations that have committed to fund efforts to create a company that will carry forward the important work on cVRPs. It is testament to the collaborative nature of our ecosystem that it can be industry-led.”
With regulatory foundations already in place, this industry-backed funding marks a critical step toward making VRPs a commercial reality in the UK.