(Reuters) -British regulators are setting up an independent company that will advance variable recurring payments, allowing third-party financial service providers to access banking information and initiate payments on behalf of consumers or businesses.
This move is part of a broader plan for 2025, which includes the launch of live services for consumers to make recurring payments to utility companies, government entities and financial services firms.
The new company, Open Banking Limited, will play a key role in establishing an independent central operator to coordinate how variable recurring payments are made, the Financial Conduct Authority (FCA) and Payment Systems Regulator said.
Variable recurring payments will allow consumers to minimize unexpected expenses and potentially lower processing fees for businesses, the FCA added.
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Shreya Biswas)