TrueLayer launches first open banking VRP tool
Open banking provider TrueLayer has launched the first variable recurring payments (VRP) tool, which will make it easier for fintechs and banks to comply with new money transfer regulations.
The Competition and Markets Authority (CMA) recently mandated the UK’s nine largest banks to provide VRPs that support the automatic transfer of money between two accounts belonging to the same person.
However, there has been confusion around which payments can be automated, with the CMA stating that the practice cannot be mandated for making e-commerce purchases.
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In response, TrueLayer has created a VRP tool which will allow customers to connect authorised payment providers to their bank account so that they can make payments on the customer’s behalf within agreed parameters.
“The mandated approach, while beneficial, only supports payments between an individual customer’s accounts, limiting the ultimate potential of VRP,” said Matt Parish, product lead for VRP at TrueLayer.
“We are proud to announce the industry’s first recurring payments API that goes beyond that mandate to deliver comprehensive payment options that will create a better customer experience.”
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TrueLayer has been collaborating with banks to allow businesses to set up recurring payments for services such as utility bills, subscriptions and other forms of digital payments.
The new VRP tool enables the amount being collected to vary without needing the account holder to re-consent every payment.
“We have a number of clients that have seen the potential for VRP to deliver significant benefits to their business and their customers, working with us to implement sweeping and non-sweeping recurring payments in the coming months,” added Parish.
“We believe that, to truly deliver on the promise of open banking, boost fintech innovation in the UK and provide businesses and consumers with payment options that work for them, every CMA9 and non-CMA9 bank should make VRP APIs for sweeping and non-sweeping available as soon as possible.”
Read more: TrueLayer expands into five more European countries
