The Payment Systems Regulator (PSR) has outlined the next steps necessary to expand variable recurring payments (VRPs) in the UK.

The information is a response to a call out for views on how the PSR could support the expansion of VRPs to regulated financial services, regulated utilities sectors and both local and central government.

VRPs use Open Banking to enable customers to securely set up recurring payments of varying amounts. These can have a wide range of use cases, such as household bills, and can offer users greater visibility and control compared to existing payment methods.

The PSR has outlined certain areas for expansion, including coordinating expansion through a multilateral agreement (MLA). The PSR said it will work closely with the VRP implementation group to look at what specific rules an MLA should include and who might be best placed to operate it.

Respondents to the call out had mostly supported the need for a form of central price, but the PSR said there had been mixed views on how to best Application Programming Interface (API) access for VRPs. It said it would consider different pricing approaches.

Additionally, the PRS said there had been support for some level of mandated participation outside of the nine largest UK banks. The regulator said that it will assess the necessity and scope of the mandated participation.

The PSR said it aims to share a set of updated proposals for stakeholder comment in the autumn.

“Our call for views response aims to provide the transparency around what’s needed to make sure open banking keeps growing, delivering new financial opportunities and services that increase choice and flexibility for consumers,” said Kate Fitzgerald, head of policy at the PSR.

“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.”

---