Account-to-account (A2A) payment infrastructure provider Token.io has released a new survey report in partnership with Open Banking Expo . The report reveals that merchants, payment service providers (PSPs), and third-party providers (TPPs) in the UK and Europe see strong potential in Commercial Variable Recurring Payments (CVRP) and Dynamic Recurring Payments (DRP) to enhance payment processes, increase options, and reduce costs.

However, concerns are growing that a lack of bank support could slow adoption. The report includes insights from over 100 senior leaders across UK and European banks, merchants, PSPs, and TPPs on their readiness and perspectives regarding CVRP and DRP. The findings suggest considerable market interest in these emerging payment options.

More than half of merchants surveyed (57%) intend to replace card payments with CVRP, seeing it as a viable way to facilitate A2A payments. Among PSPs and TPPs in the UK and Europe, 97% view CVRP as important, with a significant portion (28% in the UK and 33% in Europe) rating it as ‘extremely important’ for expanding A2A payment use. The survey also highlights CVRP's potential to provide consumers with better control over their payments, while offering businesses a more efficient, secure, and cost-effective method for managing recurring payments.

Over half of the participants (59% for CVRP and 51% for DRP) believe these options could provide better user experiences than traditional methods like card-on-file or direct debit, with a particular focus on one-click e-commerce payments as a leading application. Representatives from Open Banking Expo added that while merchants are prepared to adopt commercial VRPs, a robust infrastructure and consistent bank support are critical to ensure a smooth experience that fosters consumer confidence. Though progress has been made, many industry stakeholders feel momentum has not met expectations.

CVRP support from banks Bank readiness to support CVRP remains mixed. While 79% of surveyed banks agree CVRP would benefit account holders and the payments ecosystem, only 32% expect to support CVRP for low-risk use cases by 2025, and just 26% anticipate supporting it for ecommerce. This hesitancy has led 73% of participants to suggest regulatory involvement may be necessary.

The report further indicates broad agreement on the need for a consumer protection framework designed for CVRP. Many banks view this as an opportunity to create a framework that balances ecosystem needs and addresses issues in the current system, such as operational overhead and inefficiencies. Additional insights in the full report cover leading use cases and benefits for CVRP and DRP, banks' expectations around CVRP compensation models and stakeholders' perspectives, as well as timelines for banks’ CVRP support and their alignment with expectations from PSPs and TPPs.

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