With the Financial Conduct Authority (FCA) demonstrating its commitment to advancing the UK’s economic growth with a digital-first approach, Variable Recurring Payments (VRPs) are positioned as a cornerstone of the nation’s next-generation payment infrastructure.

Backed by powerful technology, increasing adoption, and strong government support, both Open Banking and VRPs are set to disrupt traditional payment methods, shaping the future of UK financial services. 

Well, what exactly are VRPs?

 

Essentially, they’re continuous, flexible payments powered by Open Banking, allowing customers to authorise third-party providers (such as utility companies or subscription services) to collect payments directly through secure bank APIs. Imagine no longer having to tediously enter card details for every new transaction. With VRPs, payments are drawn directly from bank accounts, removing the need to share sensitive information.

Customers retain full control, with the ability to view transactions, set limits, and pause or cancel payments within their online banking platform. Meanwhile, businesses benefit from a reliable revenue stream that reduces friction and avoids issues like expired or incorrect card details.

This payment model could soon become a cornerstone of daily financial life, transforming both convenience and security for businesses and customers alike.

The Numbers Speak for Themselves

 

The benefits are impressive, no doubt - but the numbers make it even clearer. Data from nine providers and twenty brands highlights the remarkable growth of Open Banking and VRPs in 2024:

  • 18.86 billion successful Open Banking API calls
  • 197.37 million successful non-VRP Open Banking payments
  • 26.52 million successful VRP payments
  • 360 millisecond average API response time
  • 99.67% average API availability
  • 12.09 million total Open Banking users at the end of 2024.

With such progress, it raises the question -
How much further will this momentum take us in the coming years?

What’s Next in 2025?

 

Strong backing has already shaped developments for 2025. The National Payments Vision outlined the government’s ambitions to strengthen the UK’s payments sector and drive economic growth. To support this vision, a phase 1 government pilot was launched, focusing on low-risk VRP use cases, such as bill payments, to establish a sustainable, long-term commercial model.

Both the FCA and the Payment Systems Regulator (PSR) have expressed full support for these efforts in an official statement, echoing the messaging from Nikhil Rathi, Chief Executive of the FCA, in his letter to the Prime Minister, as well as the recent PSR's strategy update.

With these initiatives in motion, 2025 is set to be a year of significant progress, where Open Banking becomes a prevalent force in UK financial services.

Embracing the Future of Payments

 

VRPs and Open Banking are transforming the way payments are made, offering greater security, flexibility, and control for both customers and businesses. As adoption increases, these innovations will continue to disrupt the financial landscape and now is the time for businesses to consider how these will shape their strategies. 

Is your organisation prepared to adapt in this digital-first economy?

 

Discover the Potential of Open Banking with LendingMetrics

 

Open Banking is reshaping financial services and making it work for your business can be a challenge. That’s where OpenBankVision (OBV) comes in - providing real-time, fully categorised bank statement data to streamline your operations and decision-making.

Gain instant insights into customers' financial behaviour to enable more informed lending strategies and smarter affordability assessments. OBV turns Open Banking data into a practical tool for growth and innovation.

See how OpenBankVision can transform your business – contact us and ask a question today!