variable recurring payments

Variable Recurring Payments are changing how regular payments work in the UK.

Built on open banking, they allow people and businesses to make ongoing payments directly from a bank account, with clear consent and defined limits. Customers stay in control at every stage, while payments can adjust to real-life needs.

Variable Recurring Payments allow a series of payments to be made from a bank account, based on a single approval.

When setting up a VRP, the customer agrees what is allowed. That includes how much can be taken, the maximum amount per month or year, and how long the arrangement lasts. Once in place, payments can be made within those limits without needing to approve each one individually.

This creates a simpler way to manage payments that vary over time, such as household bills or account transfers, while keeping control with the customer.

Two types of VRP

There are two distinct types of Variable Recurring Payments in the UK. They use the same underlying capability but serve different needs.

Sweeping VRPs (sVRPs)

Sweeping VRPs move money between accounts owned by the same person.

Common examples include:

  • moving money into savings accounts
  • topping up a current account
  • paying off a credit card

These are sometimes described as “me-to-me” payments. They were the first application of VRPs, designed to help people manage their own finances more effectively. For example, a customer might have two current accounts, a salary account and a spending account for day-to-day expenses. The customer can set a VRP with their spending account and then move money from their salary account seamlessly when they need to.

Open Banking Limited sets the standards that enable sweeping VRPs, supporting a consistent experience across banks and providers.

Commercial VRPs (cVRPs)

Commercial VRPs enable payments from a customer’s account to an account of a business or other organisation.

Examples include:

  • utility and telecoms bills
  • financial services payments, for example topping up an investment account or pension fund
  • charity payments

With a commercial VRP, the customer gives one consent that allows a business to collect payments within agreed limits. Payments can vary, but they must stay within what the customer has approved. The customer can review or withdraw that consent at any time.

Commercial VRPs are now live in the UK through a dedicated scheme operated by the UK Payments Initiative (UKPI). This provides a shared rulebook and framework so that businesses and providers can offer the service consistently.

Who operates what

Variable Recurring Payments have been developed through collaboration across the UK open banking ecosystem. Open Banking Limited (OBL) maintains the standards that underpin VRPs and continues to support their development, including sweeping use cases.

UK Payments Initiative (UKPI) operates the commercial VRP scheme, enabling businesses to collect payments using this model[1]. These roles are complementary. Together they support a consistent, secure framework for VRPs to grow.

Trust and consent

Sweeping VRPs move money between accounts owned by the same person.

Every VRP is based on express customer consent.

The customer:

  • decides who can take payments
  • sets clear limits upfront
  • can see active permissions in their banking app
  • can change or cancel those permissions at any time

Because the consent sits with the bank, customers have a clear view of what they have agreed to and how payments are being made.

This clarity supports trust for both individuals and businesses using VRPs.

A new way to manage recurring payments

VRPs operate within customer-defined parameters where the amount to be taken over a given time period (e.g. per day, per week, per month or per year) and the end date of the permission is agreed upfront.

VRPs are quick to set up VRPs extend open banking beyond one-off transactions into ongoing payment relationships.

They make it easier to:

  • handle payments that change over time or where you make regular payments to the same organisation
  • build products around clear, flexible consent

For individuals, this can mean greater visibility and control. 

For businesses, it opens up new ways to design services that adapt in real time to how people live, spend and manage their money

[1] fca.org.uk https://www.fca.org.uk/news/news-stories/open-banking-2025-progress