UK Regulators Announce New Open Banking Plans
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The Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) have announced new steps to improve Open Banking in the UK. They said these changes will help people and businesses with their payments. One of the key ideas is to create an independent group to manage variable recurring payments (VRPs).
According to the update, VRPs let people control regular payments like subscriptions by setting limits on how much they pay or how long payments last. Both regulators said the tool helps stop surprise charges and gives users more confidence when paying for services.
Over 11.7 Million People In The UK Use Open Banking
Open Banking is already popular in the UK, with 11.7 million people using it. More than 22.1 million payments happen every month. Experts said 20 major companies helped fund improvements like fraud protection, safer systems, and new features such as VRPs last year.
VRPs are a way to manage regular payments more easily. They let users set rules, such as how much can be paid or when the payments should stop. The Financial Conduct Authority and the Payment Systems Regulator said this will help people feel safer when managing their money.
For businesses, VRPs could help reduce payment costs and give customers a better experience. Regulators said this might encourage more competition between payment systems and help payments become easier for everyone. Experts said VRPs are a good idea because they offer safety and control to people managing their money.
Open Banking Limited, a group that has helped Open Banking grow, will assist in setting up the new independent group. This group said it will manage regular payments in areas like government services, utilities, and online shopping.
The FCA And PSR Support The Launch Of Live Variable Recurring Payment Services
The Financial Conduct Authority and the Payment Systems Regulator said their new plan is part of the UK government’s National Payments Vision. They want the group to begin working soon and to reach important goals this year, like launching live VRP services for everyone.
Both regulators thanked businesses and organizations for helping Open Banking succeed. They said that teamwork is needed to reach new goals and improve the payment system for all. According to the update, Open Banking will remain an important part of the UK’s financial future. The regulators also said they want to ensure payments are safe, secure, and easy for all.
The leader of TrueLayer, a financial technology company, said the FCA’s plan for an independent group is a major step. He also said this will bring lower costs, more options, and safer payments for people and businesses.
The Financial Conduct Authority and the Payment Systems Regulator said these steps will help Open Banking grow more. Many people are happy about how these changes will enhance payment safety and convenience.
