Tech & Open Banking: The “payments plumbing” updates most people miss

If you only follow finance news through big headlines, it’s easy to miss the practical stuff that changes how money moves.

This week’s under-the-radar theme: delivery and controls — not flashy “new apps”, but the system changes that make instant payments safer, more flexible, and (eventually) cheaper.

1) Commercial Variable Recurring Payments (VRP): a delivery update (quiet, but important)

VRP is the mechanism that can enable “pay-by-bank” style recurring payments (think subscriptions, bills, and instalments) without relying on cards.

The PSR has issued a Commercial VRP update on delivery, which matters because the gap between “policy intention” and “working rails at scale” is where most fintech promises fail.

Why it matters:

• If commercial VRP becomes mainstream, it could reduce some dependency on card networks for recurring payments.
• That can change fee structures, refund flows, and dispute resolution.

2) Card fees: regulators are actively pushing for more transparency (again)

While open banking is often presented as “the future”, the present is still card-heavy.

The PSR’s CP25-3 proposals aim to increase transparency and governance in card scheme and processing fees.

Why it matters:

• The more transparent fees are, the harder it is for complex fee structures to drift upward without scrutiny.
• Merchants don’t absorb every cost forever — pricing pressure shows up in the real economy.

3) Open banking and fraud: the “trust layer” is the product

Open banking adoption rises and falls with trust.

Open Banking Limited has published material focused on financial crime (one of the least glamorous but most decisive constraints on adoption).

Why it matters:

• Fraud controls determine whether pay-by-bank can be used confidently for bigger-ticket purchases.
• Better fraud intelligence can reduce “false positives” that block legitimate users.

What to watch next

• Whether commercial VRP delivery accelerates from “updates” into concrete provider commitments.
• Whether fee transparency changes lead to visible shifts in merchant pricing strategies.
• Whether fraud standards converge enough that consumers experience open banking payments as “normal”, not “experimental”.

Sources (accessed December 2025)

• PSR publications list (includes Commercial VRP update on delivery) https://www.psr.org.uk/publications/

• PSR consultation CP25-3: Market review of card scheme and processing fees – Proposed directions https://www.psr.org.uk/publications/consultations/cp25-3-market-review-of-card-scheme-and-processing-fees-proposed-directions/

• Open Banking Limited: Financial crime related publication(s) https://www.openbanking.org.uk/

Disclaimer: This article is for general informational and educational purposes only. It does not constitute financial, investment, tax or legal advice and does not take into account individual circumstances.