This whitepaper explores Variable Recurring Payments (VRPs) as the next stage of open banking, offering greater control, transparency, and flexibility compared to direct debits and card-on-file methods. Mandated by the UK CMA for major banks, VRPs enable customers to set consent parameters like frequency, limits, and end dates through secure authentication. Sweeping VRPs automate transfers between a customer’s own accounts, while commercial VRPs cover payments to third parties, subscriptions, BNPL, and embedded services. Benefits include reduced fees, improved financial resilience, higher merchant conversion rates, lower fraud risk, and stronger customer-bank relationships.

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