European open banking platform Tink has revealed it will be involved in the Joint Regulatory Oversight Committee (JROC)’s new working groups on Variable Recurring Payments (VRP) and the future open banking entity.
Tink’s head of Variable Recurring Payments, Andrew Boyajian, has been named to a new VRP working group in the UK. The open banking platform explained that Andrew will represent the European Third Party Providers Association (ETPPA) in the VRP group after they chose him to represent them in discussions.
In June, JROC set out a programme of work to move recommendations forward for the next phase of open banking in the UK. One part of the programme was the VRP working group which will develop a blueprint for the phased roll-out of non-sweeping VRP by the end of September 2023. The working group will also be chaired by the Payment Systems Regulator (PSR).
The work aims to expand the use of VRP to enable businesses and consumers to make a wider range of payments more conveniently and efficiently. Currently, VRP is only used for individuals moving money between their own accounts (known as ‘sweeping’).
“Enabling creative application of the established principles”
The second part of the programme was revealed to include a transition from the Open Banking Implementation Entity (OBIE) to a future open banking entity. Another working group was set up to consider how the future entity should be designed, structured and funded. It will also set out proposals around how the future entity can be implemented.
The working group plans to report to JROC by the end of September 2023. JROC also plans to publish its views in an update towards the end of 2023. The future open banking entity working group will be chaired by the Financial Conduct Authority (FCA).
Andrew Boyajian, head of VRP at Tink, discussed the VRP working group: “The ultimate goal is to create a framework that fosters a faster and smoother partnership between banks and TPPs, without imposing rigid rules but rather enabling creative application of the established principles.
“Having some of these standard principles will allow competition amongst the TPPs as well – and that ultimately benefits end users. Because it’s going to make sure that TPPs are negotiating the best terms, that they’re providing the best support, and that they’re figuring out ways to actually create those selling points for them that are unique, which should translate to benefits to either merchants or billers or consumers.”
