The Financial Conduct Authority (FCA) has issued a joint statement with the Payment Systems Regulator (PSR) giving clarity on open banking pricing models.
The FCA and the PSR have issued the following statement (PDF).
This confirms that the FCA will not, at this stage, prioritise a Competition Act 1998 (CA98) investigation into the centralised ‘access fee’ pricing model being developed by the UK Payments Initiative (UKPI) for commercial Variable Recurring Payments (cVRPs).
cVRPs are an emerging open banking technology that allow consumers to give trusted third parties secure, recurring access to manage payments on their behalf. They have the potential to offer consumers and businesses greater control and convenience, while enabling lower-cost, more flexible payment options for businesses.
After engaging with the funders of UKPI, the FCA and the PSR worked at pace to clarify their enforcement position on UKPI’s proposal for a commercial model and consulted with the Competition and Markets Authority (CMA) about the planned non-prioritisation statement, given concurrency arrangements. The statement gives UKPI certainty to continue developing its cVRP product – including for certain regulated financial services, utilities and public sector payments – without delay.
This supports the FCA’s strategy to make cVRPs a reality, giving people more control over their payments and lower processing fees for businesses.
On 15 January 2026, the FCA and the PSR wrote to the CMA (PDF) to set out their position.
On 16 January 2026, the CMA confirmed to the FCA and the PSR that, based on the information available to it, it does not intend to take a different position on CA98 prioritisation. The CMA has indicated that it is keen to ensure that businesses are not deterred from collaborating in ways that may be beneficial to consumers or the wider economy because of uncertainty about how competition law applies.
Bridge to a long-term framework
This is a temporary measure ahead of the government’s anticipated legislative framework, expected by the end of 2026. It applies until that framework is in place or until July 2027, whichever comes first.
During this period, the FCA and the PSR will continue to:
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Monitor market developments
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Review any changes to the pricing methodology
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Expect UKPI to submit its finalised governance documents
All three competition authorities – the FCA, PSR and CMA – may revise their prioritisation approach if new information emerges or if the expected legislative framework is not implemented by July 2027.
Source: FCA
