OPEN BANKING / DATA
“ VRPs can help consumers with donating regularly to charities or moving money across their preferred saving and investment applications ”
ANDY WIGGAN CHIEF PRODUCT OFFICER , GOCARDLESS
The scale and popularity of Open Banking is only headed in one direction too , upwards . Willaert cites a Forrester report suggesting from 2022 , the number of Open Banking users in Europe will double by 2027 .
The scope for further growth in Open Banking makes Wiggan believe we ’ re still in the “ early days ” of its use , particularly given additional regulation and innovation being introduced to further fuel its growth .
“ With the ‘ Phase I ’ rollout of commercial Variable Recurring Payments ( VRPs ) due to start later this year , payers can experience the benefits across even more use cases ,” continues Wiggan . “ For example , VRPs can help consumers with donating regularly to charities or moving money across their preferred saving and investment applications .”
PSD3 : Augmenting Open Banking for increased adoption Indeed , the significant rise of Open Banking is set to be helped along further by the introduction of the EU ’ s third Payments Services Directive ( PSD3 ), set to come into effect in 2026 .
While not as revolutionary as PSD2 , Mhenni believes “ PSD3 , along with its counterpart Payment Service Regulation ( PSR ), will standardise Open Banking expectations and practices across the financial services industry in a way that PSD2 has not ”.
156 June 2024