Welcome back to our March edition of our open banking update, where we spotlight significant regulatory milestones. This month includes the EU’s landmark Instant Payments Regulation, the latest on the UK’s Commercial Variable Recurring Payments (cVRP) Phase 1, and the Treasury’s National Payments Vision.

EU sets a date for widespread Instant Payments

A pivotal moment has arrived for banking institutions within the Eurozone, following the entry of the Instant Payments Regulation into the EU’s Official Journal. This legislative move sets definitive deadlines for banks to integrate Instant Payments capabilities, mandating them to start receiving Instant Payments by January 8, 2025, and to facilitate sending by October 8, 2025. This looks promising in propelling the financial sector towards greater immediacy and convenience for consumers and businesses alike.

The latest forecast of the UK’s Commercial VRP Phase 1

The trajectory of the UK’s cVRP has encountered a slight detour, with the Payment Systems Regulator (PSR) delaying its response to the Phase 1 consultation to this summer, beyond the anticipated Q1 deadline. This consultation includes piloting cVRP within regulated utilities, government, and financial services, but now faces a veil of uncertainty, particularly regarding its commercial framework. Despite this delay, the call to action remains clear with the PSR’s encouragement for the ecosystem to progress with implementation efforts. Eyes are keenly set on updates from Open Banking Limited and PayUK regarding their next steps… so watch this space!

The UK’s National Payments Vision roundtable

The Treasury is actively engaging with various stakeholders through roundtables to sculpt the UK’s National Payments Vision, aiming for a publication timeline in the summer of 2024. Yapily, through the Open Finance Association, anticipates contributing to these discussions, particularly emphasising the criticality of affordable Faster Payments, the necessity for balanced fraud regulations, and the expansion of Open Banking functionalities to enrich retail and POS experiences. This aims to harmonise the UK’s payment landscape, reflecting collaborative efforts to shape a more inclusive and efficient financial ecosystem.

Closing thoughts

The EU’s stride towards instant payments, the UK’s careful navigation through the cVRP Phase 1, and collaborative efforts for a national payment vision signal a transformative period for the financial industry. These updates depict a clear determination to improve the financial industry, despite some expected hurdles along the way.

Stay abreast of the latest in open banking regulations and policies with Yapily, and discover how our expertise can support your business in navigating these changes.