FCA, PSR clarify open banking fee model enforcement

The Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) have confirmed they will not, at this stage, prioritize a Competition Act 1998 (CA98) investigation into the centralized 'access fee' pricing model.

This model is being developed by the UK Payments Initiative (UKPI) for commercial Variable Recurring Payments (cVRPs).

cVRPs represent an emerging open banking technology designed to enable consumers to grant trusted third parties secure, recurring access for managing payments.

These payments offer the potential for enhanced consumer and business control, convenience, and more flexible, lower-cost payment options for businesses.

The regulators engaged with UKPI funders and consulted with the Competition and Markets Authority (CMA) before issuing their non-prioritization statement.

The CMA confirmed its alignment with the FCA and PSR's position, emphasizing the importance of not deterring beneficial business collaboration due to competition law uncertainty.

This clarity allows UKPI to continue developing its cVRP product, including for regulated financial services, utilities, and public sector payments.

This non-prioritization stance is a temporary measure, intended to bridge the period until the government's anticipated legislative framework for open banking is established.

This framework is expected by the end of 2026.

The temporary measure will remain in effect until either the legislative framework is implemented or July 2027, whichever occurs first.

During this interim period, the FCA and PSR will continue to monitor market developments, review any changes to the pricing methodology, and expect UKPI to submit its finalized governance documents.

All three competition authorities – the FCA, PSR, and CMA – reserve the right to revise their prioritization approach if new information emerges or if the expected legislative framework is not in place by July 2027.