Global payments network GoCardless has revealed that Nude, which is a savings app for first-time buyers, is its first variable recurring payment (VRP) customer.
Nude has chosen GoCardless to power its payments, and will use the GoCardless network to move money from a saver’s bank account into their Nude Lifetime Isa.
The collaboration means that the personal finance app will gain access to both Direct Debit and instant Open Banking payments through a single integration, making Nude one of the first businesses in the UK to use the feature for VRPs.
Stephen Doherty, co-founder and chief operating officer at Nude, said: “Our approach is to make the home buying process easier, and to make it a more accessible experience for first-time buyers, which is why we’re excited to work with GoCardless.
“Its Instant Bank Pay feature has been hugely popular with our users, who see their deposit grow with every transfer. And when variable recurring payments come in, they can instantly and automatically move their money from any account to their ‘first home fund’ on a regular basis. This will give them more control and a better all-around experience.”
In November, the CMA approved a new timeline for the CMA9 to implement VRPs for sweeping services, with the revised deadline pushed back to July 2022, from January 2022.
Doherty added that Nude would like to get all its users onto Open Banking payments.
“It gives them peace of mind to see their transfer appear immediately, not to mention a huge motivational boost,” he said. “But we’re also aware some banks won’t be able to support VRPs right at the start. That’s why we value the ability to access both Direct Debit and Open Banking payments through GoCardless, ensuring all of our users can easily transfer money onto the app.”
Duncan Barrigan, chief product officer and chief growth officer, at GoCardless, said that Nude has already used Open Banking “to great effect”, with the app “pulling in insights about a user’s spending and saving patterns to offer tips which cut the time it takes to reach their deposit goal”.
“ We’ve long said that VRPs have the potential to improve the financial wellbeing of people up and down the country. Working with companies like Nude makes it all the more tangible,” he added.
Earlier this month, UK bank NatWest announced it had signed an agreement with GoCardless, as well as two other payment providers, to begin offering VRPs as a new payment option for businesses and consumers. This made it the first bank to go beyond the Competition and Markets Authority’s requirement for banks to provide VRP in support of sweeping.
GoCardless confirmed it is also working on a ‘non-sweeping’ VRP pilot which will launch shortly.