www.vixio.com Open in urlscan Pro
34.249.200.254  Public Scan

Form analysis
2 forms found in the DOM

/search

<form action="/search" class="mobile-search w-form"><input type="search" class="search-in-field w-input" autofocus="true" maxlength="256" name="query" placeholder="Search…" id="search-2" required=""></form>

/search

<form action="/search" class="w-form"><label for="search" class="fs-lg fw-semibold fc-white">Search</label>
  <div class="search-bar"><input type="search" class="form_input search w-input" maxlength="256" name="query" placeholder="What are you searching for?" id="search" required=""><input type="submit" value="Search" class="btn w-button"></div>
</form>

Text Content

Solutions

GamblingCompliance
PaymentsCompliance
Who we serve

Companies
Roles
Resources

Insights
Events
Webinars and Podcast
Case Studies
Research
Blog
About us

Our People
Newsroom
Careers
Contact us
Search

LoginRequest a demo


PLEASE CHOOSE YOUR PREFERRED
SERVICE TO LOG IN TO.

GamblingCompliance
PaymentsCompliance
Don’t have an account?






VIXIO X TINK: OPEN BANKING IN 2024

Kat Pilkington

|

November 27, 2023



As part of our annual Payments Compliance Outlook report this year, which
reveals the need for firms to find a balance between growth and compliance, we
interviewed a selection of professionals in the industry for the inside scoop. 

Open banking and open finance continue to be exciting market developments that
are affecting firms across all jurisdictions in our study. From the ambitious
implementation timeline of UK regulators to the EU’s proposed open finance
framework, this topic will likely continue to be a top payment trend in 2024.
Here, we speak to Andrew Boyajian, head of variable recurring payments (VRP) at
Tink, one of the UK’s leading open banking providers, to understand more.  

OPEN BANKING HAS BEEN AROUND FOR A WHILE NOW AND, INITIALLY, CONSUMERS WEREN’T
VERY AWARE OF IT. DO YOU THINK THAT’S CHANGED NOW?

We have approached a place where there is a nice intersection. If we zoom out,
it is nice to reach a place where we can see the progression to open banking.
This originated with Diners Club in the ‘50s, and then Visa launched in ‘58, and
then we saw the beginnings of Mastercard. 

What worked in the card example was the building of demand. We are seeing
consumers beginning to become more expecting of things like speed, and
convenience. Merchants are looking for high conversion rates, and demand is now
building for these solutions that open banking can power.

We are seeing more and more banks consider their strategies. On the experience
and trust front, we are getting better and better with payments. You now just
need a face scan for biometric SCA, for example. This was not the case a couple
of years ago.

The experience with open banking is also now far, far better than it was.
Consumers are seeing this out and about. It is no longer a strange payment form,
similar to how Diners Club evolved. When these elements come into place is when
we will see a tipping point.

VIXIO HAS RECENTLY SEEN AN UPTICK IN REGULATORY ACTIVITY FOR OPEN BANKING IN THE
UK. WHAT ARE YOUR THOUGHTS ON FUTURE OPEN BANKING REGULATORY DEVELOPMENTS?

I'm really excited about the regulatory activity that is happening. One thing
with inertia to me was an area dedicated to variable recurring payments (VRPs). 

Moving from a single payment to VRP environment. This means repeated
transactions and not single, immediate payment. This is exciting as there is
some effort to get technology to market. We're beginning to see pilots and
proofs of concept. This is very encouraging to see, and the focus for regulators
is on benefitting end-users and addressing pain points. There have also been
recent developments with PSD3 and PSR in the EU. It is encouraging that as well
as developments with the SEPA payment access scheme, we are seeing the building
blocks that are required to kick off open banking momentum. This has all
happened in just a few months.

WHAT ARE THE KEY USE CASES FOR VRPS AND WHAT IS THE OVERALL BUSINESS CASE FOR
THIS?

One of the best use cases is sweeping. Sweeping VRPs would be an evolution of
how consumers can control their finances. The rollout of sweeping, the automatic
transfer of money between two accounts, is well underway, much like a direct
debit or standing order, except with greater transparency over the amount,
frequency and end date. We're beginning to see how end users can have better
control and flexibility. It is a terrific opportunity to begin promoting VRPs.
The first area where this is happening is lower risk cases, such as tax
payments, where VRPs are a great way of complementing existing payment methods. 

This is one of the reasons that Tink partnered with NatWest, as it meant that
they had a way to position it to their end users.

WHAT NEEDS TO HAPPEN TO ENSURE THAT VRPS ARE A SUCCESS STORY IN THE UK?

When thinking about what creates the best experience with VRPs, it is
understanding the needs of wider adoption. We need to create the best
experiences. From our view, we need to consider how to make it easier to get to
market, and how to make something reputable. For example, are there ways to
standardise it? Could we agree to focus on these use cases, and think about
internal operations? Things like this mean any financial institution can use
minimal effort to implement VRPs. This is the key to making sure that it can
take root in the UK. We want to see how this grows as well, for the best
commercial model. This would mean we have a logical, next step in place, such as
subscriptions.

IS MUCH WORK TAKING PLACE ON VRPS IN THE REST OF EUROPE? DO YOU THINK THAT THE
RECENT REGULATORY PROPOSALS COULD HELP MAKE WAY FOR THIS KIND OF INNOVATION?

The UK prides itself on being a leader in open banking. VRP is propelling it as
a leader in open banking. In the EU, SEPA is creating the right framework for
this. PSD3/PSR creates a capability for uniformity and considers how experiences
can be consistent throughout the EU. Beyond that, there is also the European
Commission's proposal for instant payments. Instant payment legislation is
looking to promote use and create parity in pricing. The adoption of this is a
building block for VRP.

IN 2024, WHAT DO YOU PREDICT WILL BE THE BIGGEST TREND IN PAYMENTS?

I think that we will see the continued growth of Pay by Bank with retail
consumers. One thing that this will pave the way for is VRPs. I think this is
going to be the case in SEPA as well. Other markets, such as Australia, are
considering what their equivalent is. 


Andrew Boyajian, head of VRP at Tink

WANT TO KNOW MORE?

This interview gives you a flavour of what's inside our Payments Compliance
Outlook 2024: The Compliance Dilemma - Growth At What Cost? available to all
Vixio PaymentsCompliance subscribers. Get your bitesize version of the report to
learn more below.

‍

Download Report
Share
LinkedIn icon
Facebook icon



WHAT OUR CLIENTS SAY

"Vixio Regulatory Compliance offers excellent legal and regulatory analysis and
provides us with a trustworthy, organised and credible single source solution,
which keeps us ahead of the game."


888.COM

CEO

"Vixio GamblingCompliance is an invaluable source of regulatory information,
making it an excellent tool for the gambling industry. The quality of analysis
is unmatched and the ease of use searching for topics, regions and themes makes
it very simple to identify relevant stories."


MORGAN STANLEY

Senior Researcher

"Vixio GamblingCompliance is crucial to keeping a finger on the pulse of
gambling regulation. Accessing a single, credible source of information and news
helps us efficiently evolve our systems to align with regulatory developments."


PAYPAL UK

Head of Risk Management

"Hands down one of the most unique full suite sources of this subject matter
anywhere."


UNIONPAY INTERNATIONAL

Managing Counsel

"The ever-increasing change coming from various regulators in different
territories makes Vixio Regulatory Intelligence a must for a compliance team at
a business like ours."


TRUEVO

Head of Legal & Compliance

"Using Vixio PaymentsCompliance gives us a comprehensive view of the critical
changes in regulation in our key markets, and reduces our business resource
requirement which saves us on average £100k per annum, we wouldn't be without
it!"


WELL KNOWN E-MONEY COMPANY

Regulatory Compliance Team Lead

Slide 2 of 6.



Download Brochure


INSIGHTS AND INTELLIGENCE FOR SOME OF THE WORLD’S BIGGEST BRANDS


To find out more about Vixio, contact us today
Contact us
Solutions
Who we serve
Resources
About us
Request a demo

Awards Sponsorship TermsService StatusTerms and ConditionsPrivacy PolicyCookie
PolicyDisclaimerAnti-Slavery PolicyAccessibilty Statement
Copyright © 2023 Vixio Regulatory Intelligence, all rights reserved.

By clicking “Accept All Cookies”, you agree to the storing of cookies on your
device to enhance site navigation, analyze site usage, and assist in our
marketing efforts. View our Privacy Policy for more information.

DenyAccept