VRP allows safer and more convenient payments for end users, Yapily says.
Open banking platform Yapily has launched a Variable Recurring Payments (VRP) service just a few days after the UK’s nine largest banks are mandated to support the function.
VRP - also called ‘sweeping’ - is a form of payment similar to direct debts for businesses and consumers to make recurring payments of varying amounts. Crucially, they do not need to re-authenticate each transaction, thereby removing a key point of friction in open banking and opening the door for a phase of payments competition.
Bills, subscriptions and payments between individuals are the key market for VRP with a speedier, safer and cheaper route being the main benefits, according to adherents.
The Competition and Markets Authority (CMA) has told the likes of HSBC, NatWest and Lloyds they must support as part of open banking legislation.
The CMA had given the UK's nine largest banks 31st July 2022, following a six-month extension, meaning any banks that do not support it are in breach of its mandate.
Rival open banking firms, Truelayer, Plaid and Gocardless have also recently launched their VRP services.
Yapily says it currently has two clients using the service Volume, a ‘one-click’ checkout payments platform and Ozone API, an open finance provider.
“This is a great example of how Yapily and open banking are helping to create a healthy payments ecosystem where there is value for every participant. We are proud to be breaking down the barriers to innovation in this space and meeting the evolving needs of banks, merchants, PSPs, businesses, and consumers alike,” said Ben Aier, VP Product at Yapily.
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