From sweeping to subscriptions – what's next for open banking VRPs?
UK banks are busy creating new open banking VRP APIs. It could mark the start of a revolution in how people pay.
Since the UK’s Competition and Markets Authority (CMA) fired the gun on Variable Recurring Payments (VRPs) – the mechanism it has selected to let people automatically move money between their bank accounts – the UK’s big nine banks have been busy building the open banking infrastructure to make it happen.‘Sweeping’, as the concept is known, is due to become reality in the second half of 2022. It is designed to help people avoid unplanned overdrafts, stick to their repayment schedules and save more by triggering simple money transfers between accounts. (Here’s a bit more background on VRPs.)