- Phase 1 Roll Out of VRP:
- Financial regulators in the UK plan to implement non-sweeping variable recurring payments (VRP) by Q3 2024.
- Joint Regulatory Oversight Committee (JROC) supports the blueprint for VRP working group.
- Initial Use Cases:
- Recommendations for VRP include payments to regulated utilities, financial services, and government entities.
- Outstanding Issues:
- Challenges include establishing formal dispute resolution mechanisms and a commercial model.
- Agreement needed on addressing payment errors, biller insolvency, and determining appropriate pricing.
- Call to Action:
- JROC urges Pay.UK and Open Banking Limited to lead implementation groups for necessary enhancements and dispute mechanisms.
- Multilateral Agreement:
- Regulators emphasize the need for a multilateral agreement for Phase 1 VRP to facilitate market access and reduce inefficiencies.
- Consultation on Pricing:
- Payment Systems Regulator (PSR) launches a consultation on parameters for a central price for VRPs based on an incremental cost recovery model.
- Open Banking Ecosystem Collaboration:
- Co-chairs of the Committee highlight collaborative efforts in the open banking ecosystem, expecting benefits for consumers and businesses.
- Future Oversight Entity:
- JROC addresses the future structure of the oversight entity for open banking, planning to decide on structure, governance, and funding model early next year.
- Timeline:
- Q1 next year: Committee to publish decisions on the oversight entity’s structure and immediate steps for its establishment.
Non-sweeping VRPs set for Phase 1 UK roll out in Q3 2024
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