On January 23, British regulators announced the establishment of an independent company dedicated to advancing variable recurring payments. This initiative will enable third-party financial service providers to access banking information and facilitate payments for consumers and businesses.
In line with a comprehensive plan for 2025, the launch of live services will empower consumers to make recurring payments to utility companies, government entities, and financial services firms.
The newly formed Open Banking Limited, endorsed by the Financial Conduct Authority (FCA) and Payment Systems Regulator, will serve as a pivotal player in overseeing the efficient processing of variable recurring payments.
According to the FCA, embracing variable recurring payments will help consumers manage unforeseen expenses and potentially reduce processing fees for businesses.