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Finance

Posted By Global Banking and Finance Review

Posted on January 23, 2025

UK to establish independent firm to boost open banking payments

(Reuters) - British regulators are setting out the next steps towards using open banking payments for e-commerce by establishing a new independent company to drive forward variable recurring payments.

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 on Thursday.

Open banking refers to third-party firms using banking data from customers at mainstream lenders to offer tailored services such as lending or payments. There are 11.7 million active users in the UK, according to the FCA.

(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Shreya Biswas)

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