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In a significant step forward for the UK's financial sector, Acquired.com has announced its participation in an industry-wide initiative to establish a new company for Variable Recurring Payments (cVRP). This move comes in response to the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) announcing the creation of a central operator for cVRPs in January.
Open Banking Limited (OBL) will play a key role in coordinating this initiative, which involves over 30 other organisations, including fintechs, high street banks, challenger banks, and payment providers. The new company created through this initiative will carry forward work to establish commercial variable recurring payments (cVRP).
Greg Cox, CEO of Acquired.com, expressed his support for the creation of a central operator for cVRPs by OBL. He stated that this announcement marks the first step in Acquired.com's commitment to advancing the future of variable recurring payments. Cox also mentioned that Acquired.com's involvement in the initiative directly answers the government's 2024 call for partners to support the delivery of cVRPs.
The first phase of the rollout, known as Wave 1, will focus on enabling cVRPs for sectors including utilities, rail, government agencies, and regulated financial services. Acquired.com's proprietary sweeping VRP solution will be integrated into this offering, allowing for the automatic movement of funds between a customer's own accounts for purposes such as moving money into a savings account or for debt repayments.
The new central operator for cVRP will expand on and take over from the role previously held by Open Banking Limited as part of the broader regulatory framework for open banking and smart data schemes. The Future Entity, as it will be known, will be responsible for running the commercial scheme specific to VRP technology and will serve as the central operator coordinating participants, ensuring standards and equitable arrangements among stakeholders.
The creation of the Future Entity is part of the government's long-term regulatory framework designed to provide a coherent, regulated open banking scheme building on Open Banking Limited’s foundation, with enhanced governance and industry coordination to support variable recurring payments and beyond.
For further reading on this topic, you can refer to "Token.io: Merchants, PSPs, ready to adopt CVRP despite lack of bank support".
In essence, Open Banking Limited’s role is evolving and being institutionalized into a formally regulated and industry-owned entity that will coordinate the rollout and operation of cVRP schemes in the UK, under the regulatory leadership of the FCA as part of the open banking ecosystem modernization. The collaborative approach taken by Acquired.com and other industry partners is expected to accelerate the adoption of innovative, secure, and customer-centric payment solutions across the UK.
- Acquired.com's proprietary sweeping VRP solution will be integrated into the first phase of the rollout (Wave 1) for the Variable Recurring Payments (cVRP) scheme, facilitating the automatic movement of funds between customer accounts for purposes such as savings or debt repayments.
- The new entity, known as the Future Entity, will expand on Open Banking Limited's role, taking over the responsibilities for the commercial scheme specific to Variable Recurring Payments (cVRP) technology in the UK's open banking ecosystem.
- The government's long-term regulatory framework, which includes the establishment of the Future Entity, aims to provide a coherent, regulated open banking scheme, building on Open Banking Limited's foundation, and enhancing governance and industry coordination to support variable recurring payments and beyond.
- The collaboration between Acquired.com and other industry partners, such as fintechs, high street banks, challenger banks, and payment providers, is fostered by Open Banking Limited, as part of an industry-wide initiative to advance the future of Variable Recurring Payments (cVRP).
- The forthcoming adoption of cVRP solutions, innovative, secure, and customer-centric, is expected to be accelerated by the collaborative approach taken by industry partners, within the UK's financial sector, driven by the rising demand for advanced technology in business and finance.
