Direct Debit has served businesses well for decades, but it has real limitations: three-day settlement, limited customer controls, no real-time visibility, and a cancellation process that can take days. Open banking, specifically Commercial Variable Recurring Payments (cVRP), offers capabilities that can help alleviate many of these pain points, with faster payments, greater flexibility and improved visibility.
In June 2026, sweeping VRPs accounted for around 19% of UK open banking payments, based on Open Banking Limited figures showing 7.73 million sweeping VRP payments out of 40.16 million total open banking payments. Sweeping VRP is distinct from commercial VRP, so these figures should not be interpreted as cVRP adoption.
Why cVRP and not just open banking payments?
Standard open banking payments (Single Immediate Payments) require SCA on every transaction: great for security, but friction-heavy for recurring billing. cVRP solves this, as customers authenticate once, a mandate is created with agreed constraints (max per payment, max per period, expiry), and you collect future payments automatically within those limits. The customer can view or cancel their mandate in real time.
Direct Debit vs. cVRP: the key differences
Direct Debit | cVRP | |
Settlement | Typically up to 3 working days | Near real-time or instant, depending on implementation |
Cancellation | Can take time to take effect | Can be managed in near real time |
Authentication | Mandate set up via paper or online form | SCA at setup |
Customer controls | More limited | Greater real-time control and visibility |
Failed payment handling | Often requires retry logic or manual intervention | Can support balance checks before payment |
Cost | Typically low | Expected to be competitive |
Exact timings, functionality and costs can vary by provider, scheme and implementation.
Yapily: a leading open banking provider for recurring payments
Yapily is one of 31 organisations that founded the UKPI, the FCA-backed body governing commercial VRP in the UK. That means they're not just implementing the standard, they're helping define it.
A live cVRP pilot is already running across Wave 1 sectors: utilities, regulated financial services, charities, government, and e-money institutions. Wave 2, covering e-commerce and subscriptions, follows in H2 2026. For businesses that want to move early, Yapily is a strong choice.
Choose Yapily if you want a provider actively shaping the UK framework, and flexibility on how much of the payment experience you own.
FAQs
Do customers have to do anything different to set up a cVRP vs a Direct Debit?
Yes, but it's simpler. Instead of completing a paper or online mandate form, customers authenticate via their banking app using SCA, typically taking under a minute. After that, payments are collected automatically within agreed limits. No more chasing completed mandate paperwork.
What happens if a payment exceeds the mandate limits?
The payment will not go through. The business receives a notification and can prompt the customer to either update their mandate limits or make a separate one-off payment. This is more transparent than Direct Debit, where unexpected payment amounts can cause disputes.
Can cVRP handle variable payment amounts, like utility bills?
Yes, that's a core design feature. cVRP mandates support variable amounts within agreed maximums. A customer might authorise payments of up to £300 per month; the actual amount collected each period can vary, just as a real utility bill would.
Is cVRP covered by the same consumer protections as Direct Debit?
No. Direct Debit and cVRP operate under different consumer-protection frameworks. The Direct Debit Guarantee is specific to Direct Debit. cVRP uses Strong Customer Authentication when consent is established and is subject to the protections, dispute processes and liability arrangements applicable to the relevant payment service and scheme. Businesses should consider these differences when determining which payment method is appropriate for their customers.