A major change is coming to how UK consumers and businesses can pay for everyday services.

Frontier was commissioned with Open Banking Limited to design the commercial model for Wave 1 commercial variable recurring payments (cVRP) – a new way to authorise account-to-account payments for things like utility bills or charity donations. Unlike Direct Debit, cVRP offers more flexibility, and opens up new opportunities for innovation.

Our work explores how sending banks (ASPSPs) and payment providers (PISPs) could structure commercial terms, with a focus on promoting adoption and ensuring sustainability. We assessed pricing options, tested methodologies, and identified design choices that could shape how this new payment option lands in the market.

The proposed model is now open to consultation. A new Operator will take forward the final decision, establishing rules through a Multi-Lateral Agreement. Meanwhile, planning for future Waves – covering more complex use cases like e-commerce – is already underway by UK Finance.

Read our full report on the Open Banking website now, and take part in the consultation