VRPs are a form of payments instruction that allows customers to authorise registered payment service providers to initiate payments from their bank account on an ongoing basis, where the timing or the amount might vary, within agreed limits.
Late last year, financial regulators agreed plans for a Phase 1 roll out of non-sweeping VRPs by the third quarter of 2024. The blueprint recommends payments to regulated utilities, regulated financial services, and central and local government as the first step in creating wider uses for VRP and open banking payments.
The PSR called for stakeholder feedback on the plans, which have now been published, highlighting some potential areas for tweaks:
The regulator will now offer updated proposals in the autumn for further stakeholder comment.
Kate Fitzgerald, head of policy, PSR, says: “This is an important step in keeping up momentum to expand the use of VRPs. We’ll continue to work closely with the ecosystem to ensure this happens effectively and identify where regulation will have the most impact – promoting competition and driving better value and outcomes for consumers.”
