The UKPI scheme enables commercial variable recurring payments (cVRP) allowing consumers to authorize third parties to manage recurring payments on their behalf, which is the core function of recurring payments regulation.
Open banking initiatives rely on third-party providers accessing payment data and initiating transactions on behalf of consumers, making third-party provider oversight a secondary regulatory concern.
Specialism
The UKPI scheme enables open banking and commercial variable recurring payments, which involves data-sharing and consumer control over financial data, aligning with data governance principles for payment service providers.
Low confidence — requires human review. The initiative promotes competition and innovation in payments markets through open banking access, which has competitive implications, but the primary focus is on data-sharing and consumer choice rather than anti-competitive behavior.
2026-06-04 10:07:30·adavies@vixio.com
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The UK Payments Initiative (UKPI) will give people more choice about how and when they pay for recurring goods and services.
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TITLE: United Kingdom Financial Conduct Authority Launches UK Payments Initiative Scheme for Open Banking
BODY:
On June 2, 2026, the Financial Conduct Authority (FCA) announced the launch of the UK Payments Initiative (UKPI), an industry-led scheme representing a significant advancement for open banking and commercial variable recurring payments (cVRP) in the United Kingdom.
The UKPI scheme will enable consumers to exercise greater choice regarding how and when they pay for recurring goods and services, fostering increased competition, innovation, and economic growth within the payments sector. The FCA anticipates that the launch of the first scheme by UKPI will catalyse the emergence of additional commercial open banking initiatives. To support this development, the FCA is backing industry efforts to establish an independent standards-setting body to strengthen the next phase of open banking. Subject to forthcoming legislation that will grant the FCA new regulatory powers, the authority intends to consult on a long-term regulatory framework for open banking by the end of December 2026.
The FCA has also published its regulatory roadmap for open finance, building on the data-sharing foundations established through open banking. This roadmap aims to provide consumers and businesses with enhanced control over their financial data, enabling them to secure more competitive financial products and services.
The announcement reflects the FCA's commitment to fostering a competitive open banking ecosystem while establishing appropriate regulatory safeguards. Market participants and stakeholders should monitor the FCA's consultation on the long-term regulatory framework, expected by the end of 2026, and track developments regarding the independent standards-setting body to understand how these initiatives will shape the regulatory landscape for open banking and open finance going forward.
Open banking takes next step forward with launch of UK Payments Initiative scheme | FCA Growth Open banking takes next step forward with launch of UK Payments Initiative scheme Statements First published: 02/06/2026 Last updated: 02/06/2026 The UK Payments Initiative (UKPI) announcement signals a major step forward for open banking and commercial variable recurring payments (cVRP). The launch of UKPI paves the way for greater payments competition, innovation and economic growth. Read the announcement . The industry-led scheme will give people more choice about how and when they pay for recurring goods and services. We want to see competition between commercial open banking schemes and expect the launch of the first scheme by UKPI to act as a catalyst for other initiatives to emerge. To strengthen this next phase of open banking, we are supporting industry efforts to establish an independent standards-setting body, and – subject to legislation expected to give us new powers – will consult on a long-term regulatory framework by the end of 2026. We have also published our regulatory roadmap for open finance to build on the data-sharing foundations established by open banking. This will give consumers and businesses greater control over their financial data to help secure better deals. Was this page useful? Yes No What can we do to improve pages like this? What did you find helpful? Submit Feedback Leave this field blank Print Page Linkedin Twitter Share page Related content Open finance roadmap: our vision for a smart data future Open banking and open finance