VRP hype grows with UK’s ‘first consumer payment transaction’

0

The open banking platform said The Credit Thing, a UK credit challenger, made the first VRP transactions in the UK via TrueLayer. No details on the amount involved were available for reasons of confidentiality.

Image Source: Online Payment/Pixabay

The hype around Variable Recurring Payments (VRP) seems to be growing day by day, with TrueLayer announcing that the first consumer VRP transaction has been made in the UK.

VRPs that allow consumers to authorize third parties to initiate payments from their bank account on an ongoing basis have been touted as the next frontier of open banking.

The open banking platform said The Credit Thing, a UK credit challenger, made the first VRP transactions in the UK via TrueLayer’s recurring API. No details on the amount involved were available for reasons of confidentiality.

The partnership between Credit Thing and TrueLayer allows consumers to make VRPs with HSBC and certain other banks.

Proponents of VRPs claim that recurring payments can be made in seconds, unlike credit cards which can take days to process.

Colin Holingsbee, CIO of The Credit Thing, said: “Could this be the beginning of the end for direct debits? VRP is a real game-changer.

“It’s not innovation for fun. It offers significant benefits: consumers are in control, the service is secure and user-friendly, the cost of service is ultra-competitive, and regular payment approval rates are likely to be phenomenal. »

Matt Parish, Product Manager for VRP at TrueLayer, said: “Today is an important day for the UK payments industry – the first company to use variable recurring payments to deliver a better customer experience.”

Earlier this month, major bank NatWest became the first UK bank to offer VRP as a recurring payment option through a partnership with three open banking providers.

Also this month, GoCardless hit its first VRP client, Nude.

Subscribe to our newsletter

Share.

Comments are closed.