The Financial Conduct Authority (FCA) has launched the UK Payments Initiative (UKPI), a new commercial operating company designed to accelerate the adoption of Variable Recurring Payments (VRP) across the country.
The initiative aims to establish VRP as a viable, scalable alternative to traditional card-on-file methods and Direct Debits, marking a significant step in the evolution of open banking in the UK.
TrueLayer COO appointed to board
As part of the launch, TrueLayer has confirmed that its chief operating officer, Rob Kerrigan, has been elected to sit on the board of the new organisation. The payments network joins 30 other firms from across the ecosystem—including all major UK retail banks—in funding and supporting the UKPI.
The collaboration underscores a unified industry push to commercialise open banking payments. The first live transactions under the UKPI scheme are expected to take place early next year.
‘Bank on file’: The next phase of ecommerce
VRP technology enables businesses to collect payments directly from a customer’s bank account on an ongoing basis, with the customer’s consent. TrueLayer refers to this functionality as “Bank on file,” positioning it as a direct competitor to the long-standing card-on-file model used by networks like Visa and Mastercard.
The technology supports recurring transactions such as subscriptions, one-click checkouts, and usage-based billing without relying on stored card details. For consumers, this promises greater control and flexibility over their finances. For businesses, it offers the potential for fewer failed transactions and lower processing costs.
Reducing reliance on incumbents
Rob Kerrigan highlighted the strategic importance of the initiative:
“The establishment of the UK Payments Initiative is a major step forward for Pay by Bank and for the UK payments landscape. Just as important, however, is the level of collaboration between banks and payment providers to turn VRP (aka “Bank on file”) into a viable commercial model, driven by a shared ambition to make real progress in this space.”
Kerrigan added that the move signals a shift away from traditional payment rails:
“Like other European countries that have adopted A2A payment methods as standard, Pay by Bank in the UK – powered by open banking – is now moving quickly toward commercial adoption at scale. VRP is the essential next step towards reducing the UK’s long-term reliance on incumbents such as Visa and Mastercard. Merchant demand is clear, and today marks a significant step towards making this a reality.”
Founded in 2016, TrueLayer is currently live across 22 countries, processing transactions for more than 20 million users. The company views the UKPI as a critical vehicle for meeting merchant demand for cheaper, faster, and more secure payment alternatives.