The European open banking platform Tink has announced that it will participate in the new working groups on variable recurring payments (VRP) and the upcoming open banking entity established by the Joint Regulatory Oversight Committee (JROC).
Andrew Boyajian, the director of variable recurring payments at Tink, has been invited to join a brand-new VRP working group in the UK. According to the open banking platform, Andrew was chosen by the European Third Party Providers Association (ETPPA) to represent them in discussions and will now represent them in the VRP group.
JROC announced a work schedule in June to forward suggestions for the UK’s next open banking phase. The VRP working group, which will create a plan for the staged implementation of non-sweeping VRP by the end of September 2023, was one component of the program. The Payment Systems Regulator (PSR) will serve as the working group’s chair as well.
Moreover with the help of the work, businesses and customers will be able to make a greater variety of payments more quickly and simply. VRP is currently exclusively utilized by people to sweep money between their own accounts.
“Assisting in the innovative application of the established principles”
It was made known that the second phase of the initiative would involve a change from the Open Banking Implementation Entity (OBIE) to a new open banking entity. Another working group was formed to think about the future entity’s organization, design, and funding. It will also include suggestions on how the future entity might be put into action.
By the end of September 2023, the working group intends to submit a report to JROC. JROC intends to provide its opinions in an update at the end of 2023. The Financial Conduct Authority (FCA) will serve as head of the upcoming working group for open banking entities.
The ultimate objective of the VRP working group, according to Andrew Boyajian, head of VRP at Tink, is to create a framework that promotes a quicker and more seamless relationship between banks and TPPs, without enforcing strict regulations but rather encouraging the creative use of the established principles.
Finally the TPPs will be able to compete if some of these standard principles are followed, which ultimately benefits end consumers. Because it will guarantee that TPPs are negotiating the best terms, offering the best service, and finding ways to actually develop those selling points for them that are distinctive, which should convert to benefits for either merchants, billers, or consumers.