Rewards-based credit card Yonder has added variable recurring payments (VRPs) alongside its direct debit functionality, through its partnership with bank payment company GoCardless.
By enabling GoCardless’ ‘Instant Bank Pay’, Yonder cardholders are now able to pay off their credit card balance immediately using VRPs.
Tim Chong, co-founder and chief executive officer of Yonder, said that since introducing VRPs, many of its “members” have made the move from monthly to weekly, or daily repayments.
“The instant nature of VRPs means they can immediately free up their credit line and take full advantage of our rewards, or gain peace of mind that their balance is cleared,” he added.
“Simply put, VRPs allow our members to manage their repayments in the way that works for them.”
London-based Yonder can now access both direct debit and instant, recurring Open Banking payments via a single provider.
Chong said: “We’ve used GoCardless for Direct Debit for over a year and given their expertise in bank payments, it made sense to add VRPs and offer the two together.
“Because it’s still early days for Open Banking, we wanted to have a fallback payment option for our members in case their banks don’t currently offer VRPs or they encounter the odd hiccough as the tech continues to develop. Direct debit, which has been around for decades, is a great complement.”
Pat Phelan, managing director of UK and Ireland and chief customer officer at GoCardless, added: “We’re proud to expand our relationship with Yonder, providing VRPs so they can continue to create an excellent member experience.
“By combining direct debits and VRPs, Yonder can benefit from the best of bank payments, tapping into two payment methods that are fast, secure and cost-effective.”
In its response, JROC committed to targeting a pilot of non-sweeping VRPs by the third quarter of 2024.
Andy Wiggan, chief product officer at GoCardless, said he is pleased “to see the regulatory authorities mapping out a pragmatic approach to supporting the growth of Open Banking”.