Publication of JROC’s recommendations for the growth of Open Banking marks a significant and important milestone for the tech, as the potential of VRPs was highlighted by the group.
The report will have drawn the attention of stakeholders in Open Banking stakeholders in the UK, as the country looks to unlock enhanced accessibility to the vertical, bolstering its economy through a challenging period.
Todd Clyde, Token.io CEO, described it as an ‘opportunity for all in the UK’, as he stated: “We are particularly pleased to see regulators recognise the potential of non-sweeping Variable Recurring Payments (VRPs) in their roadmap for open banking. VRPs are key to unlocking richer open banking use cases, such as one-click e-commerce payments and subscription payments.
“With the total transaction value of all open banking payment transactions in the UK projected to surpass $82 billion by 2027 (from $13.6 billion in 2022), we expect the availability of non-sweeping VRPs to be an important catalyst for the adoption of open banking-enabled payments.”
He also outlined that it’s a positive indication that the regulator has laid out its intentions for a clear and continued role in maintaining the UK’s ecosystem.
“The OBIE has been a key driver of the UK’s success in open banking to date, and in particular, in enabling seamless open banking-enabled user experiences,” Clyde added.
“The regulators’ broader recognition of the opportunity presented by premium APIs is more welcome news. Premium APIs, built on balanced commercial models, can support the development of higher quality APIs and will also enable the development of a broader open finance ecosystem.
“With other jurisdictions now also developing sophisticated building blocks for the future of open banking and open finance (including premium API schemes) the UK risks losing its position as an open banking world-leader. Banks, third party providers and regulators must now seize the opportunity to work together to take open banking to the next level and drive better outcomes for both consumers and merchants.”
Hiroki Takeuchi, Co-Founder and CEO at GoCardless, also backed the plans for a continued focus on VRPs, something he believes can be crucial as a collaborative approach is formed when it comes to Open Banking.
He stated: “This Report is an important milestone in the UK’s open banking journey. We welcome JROC’s prioritisation of the roll-out of Variable Recurring Payments (VRPs) so that more UK businesses and consumers can benefit from them. I’m also pleased to see a focus on technical, but important, issues which need resolving in the background.
“Above all, the report highlights the need for the Government, the regulatory authorities and industry participants to work together for JROC’s vision to be achieved. There isn’t a moment to lose and we’re excited to play our part.”
