Day: 14 June 2022

Truelayer has unveiled a VRP API

Truelayer has unveiled a VRP API for sweeping and non-sweeping use cases

TrueLayer, Eurpoe’s leading open banking payments network, has unveiled a VRP (variable recurring payments) API capable of dealing with both sweeping and non-sweeping use cases.  

As of late July 2021, the Competition and Markets Authority (CMA) in the UK has 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; sweeping accounts. VRPs 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.  

However, historically only transactionsbetween an individual customer’s accounts have been permitted, which meanthat the potential of VRP has been limitedIn April 2022, Truelayer unveiled a VRP for non-sweeping use cases; e-commerce, digital subscription, utility bill payments and other forms of digital payments. Using Trulayer VRP enables the amount being collected to vary without needing the account holder to re-consent every payment, egutility bills with a fixed payment date but different amounts due each time.  

Truelayer has already signed up NatWest Bank, which is to begin pilot testing of variable recurring payments with its open banking payments product Payit in the first half of 2022, with plans to scale to a commercial product ready by early 2023.