European Open Banking platform TrueLayer has launched a variable recurring payments (VRP) API that goes “beyond” the mandated approach and is available for customers to use for both sweeping and non-sweeping use cases.
TrueLayer said the launch makes it the first Open Banking provider delivering different recurring payments types through a single API.
Back in July 2021, the UK’s Competition and Markets Authority (CMA) gave the Open Banking Implementation Entity the green light to mandate VRPs for sweeping by January 2022.
The CMA then pushed back the deadline to July this year for the implementation of VRPs for sweeping services by the largest UK current account providers.
TrueLayer’s VRP API will enable sweeping payments that support third-party providers such as fintech firms, to fulfil a range of use cases, including recurring payments, particularly within the credit, savings and current account market.
However, TrueLayer is also collaborating with “select banks” around non-sweeping, offering businesses recurring payments to their customers for a range of services, including utility bills and subscriptions. In these use cases, where the amount being collected varies, the account holder is not required to re-consent every payment.
Matt Parish, product lead for VRP at TrueLayer, said: “The mandated approach, while beneficial, only supports payments between an individual customer’s accounts, limiting the ultimate potential of VRP.
“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.”
He added: “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.”
TrueLayer confirmed it is already working with businesses that are due to go live with non-sweeping recurring payments from May onwards.
“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,” Parish said.
Earlier this year, Parish joined Open Banking Expo’s Ellie Duncan on the Unplugged podcast to explain why 2022 “is the year of the VRP”.