2026 is shaping up to be a landmark year for UK payments, and today, we’re excited to share that Payit by NatWest has officially achieved technical readiness for Commercial Variable Recurring Payments (cVRP) Wave 1.
We’ve successfully completed full end‑to‑end consents and live payment journeys using the new multilateral model developed through the UK Payments Initiative (UKPI). It’s a big moment for us, and for the industry, as cVRP moves from concept to reality.
But beyond the milestone itself, what does this mean for the future of digital payments in the UK? And why are cVRPs generating so much excitement?
Let’s dig in.
What Is cVRP?
Commercial Variable Recurring Payments (cVRPs) are the next evolution of open banking. They allow customers to give consent to a trusted third party to initiate recurring payments on their behalf, but with clear limits around amount and frequency.
Think of them as a smarter, more transparent alternative to card on file. Unlike sweeping VRPs (which simply move funds between a customer’s own accounts), cVRPs are designed for real‑world commercial scenarios, such as:
- Paying utility bills
- Managing loan repayments
- Making regular payments to local or central government
Because customers stay firmly in control of their consent, cVRPs offer more visibility, flexibility and choice. And with regulators highlighting that VRPs already make up 16% of all UK open banking payments1, momentum is clearly building.
The UKPI multilateral model: laying the foundations
When NatWest first launched commercial VRPs back in 2022, it became the first UK bank to bring this concept to life. The industry has since collaborated to build a scalable framework that any bank or provider can use, now governed by the UK Payments Initiative (UKPI).
Wave 1 of this new scheme is due to go live in May and focuses on a set of low‑risk, foundational use cases. These early scenarios are expected to pave the way for broader adoption, including e‑commerce and everyday purchases further down the line.
By completing our Wave 1 readiness, Payit is now positioned to help businesses and consumers benefit from:
- Greater payment flexibility
- Clearer consent journeys
- Improved transparency around recurring transactions
- More predictable, streamlined digital experiences
For us, this milestone directly supports our mission to build friction‑free, customer‑centric account‑to‑account payments.
A moment of change for UK payments
Regulators have made it clear: cVRPs are a core part of the UK’s future payments infrastructure.
“As we embrace the National Payments Vision, we enter a new horizon for A2A payments" says Rammy Lal, VRP Product Owner, NatWest.
In recent updates, the FCA and Payment Systems Regulator highlighted several important developments triggered by cVRP:
1. Accelerating open banking growth
With open banking usage surpassing 16 million active users2, VRPs are seen as a crucial driver of competition and innovation.
2. Strong government backing
The UK’s National Payments Vision calls for rapid expansion of VRPs into commercial use cases - something UKPI is already delivering.
3. New legislation coming in 2026
HM Treasury is expected to give the FCA new powers to set long‑term rules for VRPs, enabling industry‑wide stability and scaling.
4. Expansion into e‑commerce
Once phase 1 is proven, cVRPs are expected to support everyday transactions, including online retail and grocery shopping.
It’s an exciting roadmap, and Payit is ready to help shape what comes next.
What this means for Payit
Achieving cVRP Wave 1 technical readiness is more than a tick‑box exercise. It represents:
- Confidence in our engineering and payment capabilities
- Alignment with the UK’s long‑term open banking strategy
- A major step toward enabling richer, more flexible digital payment journeys
Most importantly, it creates new opportunities for businesses and consumers to benefit from modern, transparent, and consent‑driven recurring payments.
“Reaching technical readiness for cVRP Wave 1 reinforces Payit’s role at the forefront of open banking innovation...This milestone strengthens our leadership in shaping the UK’s future payment landscape.”
— James Hodgson, CEO of Payit
We’ll be working closely with our partners, industry bodies and the wider ecosystem as Wave 1 goes live, and as the next waves of cVRP innovation begin to roll out.
Looking ahead
cVRPs aren’t just a new way to take payments. They’re a foundation for a more open, competitive and customer‑empowered payments ecosystem in the UK.
With Wave 1 now within reach, we’re proud to be at the heart of this transformation.
If you’d like to explore what cVRPs could mean for your business, or learn more about how Payit is evolving with the UKPI framework, contact us at [email protected].
1 https://www.psr.org.uk/media/xgjcblmb/cvrp-update-on-delivery-_-dec-2025.pdf
2https://www.fca.org.uk/news/news-stories/open-banking-2025-progress
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