INSIGHTS ¦ Commercial Variable Recurring Payments

UK Finance

Summary
This report discusses the implementation and governance of Commercial Variable Recurring Payments (cVRP) in the UK, focusing on model clauses that could potentially form a part of multi-lateral or bi-lateral contracts. It examines various aspects of the cVRP system, including payer protections, risk management, and the regulatory framework, aiming to foster a robust, efficient, and secure environment for these types of payments.
Key Points

Definition and Scope: cVRPs are an evolution of the payment industry, leveraging open banking frameworks to enable variable recurring payments.
Regulatory Background: Governed by the PSRs 2017 and the CMA Order, cVRPs lack a solid regulatory mandate, which leads to reliance on contractual agreements.
Stakeholder Engagement: Wide participation from banks, fintechs, and other payment service providers under the oversight of UK Finance and Addleshaw Goddard.
Standardisation and Clauses: Development of model clauses for voluntary ad...

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