The Open Banking Implementation Entity (OBIE) has launched a consultation on variable recurring payments rules.

The organisation, which was established in 2016 by the Competition and Markets Authority (CMA) to implement the infrastructure and Application Programming Interfaces (APIs) necessary for the roll out of Open Banking.

The consultation, which launches today, marks the next step in the development on Open Banking in the UK, the OBIE said.

Variable Recurring Payments (VRPs) allow customers to safely connect authorised payments providers to their bank account so that they can make payments on the customer’s behalf, within agreed parameters that offer more control and transparency than existing alternatives.

Sweeping is the automated movement of funds for a customer between two accounts in their name, usually to help the customer avoid charges or benefit from better interest rates.
The OBIE said that the consultation on the framework will be open to contributions from all interested parties.

The first phase of the consultation process will take place between the November 9th and December 4th 2020.

As part of the process, the OBIE will hold webinars open to all stakeholders, to discuss the proposal and obtain feedback, the first of which will take place on November 11th 2020.

Any written responses to the consultation should be submitted by 4th December.

The OBIE will review all submissions and publish a summary of responses before the Christmas break.

A further phase of consultation is expected to commence towards the end of January, with final decisions on the rules expected in early Spring.

Commenting on the move, Jack Wilson, head of policy and regulatory Affairs at TrueLayer, said: “We’re pleased to see variable recurring payments (VRP) and Sweeping now being discussed in the OBIEs latest consultation. In our view, it makes complete sense for the banks to meet the CMA order that requires banks to implement sweeping by implementing VRP APIs.

“The VRP infrastructure will boost the competitiveness of Payments Initiation Service Providers (PISPs) PISPs, allowing them to provide cheaper alternatives to direct debit and card on file. At the same time, sweeping can transform the UK savings market, allowing FinTech firms to make saving effortless for consumers. We look forward to working with the OBIE on the development of the standard,” he added.

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