TrueLayer, a London-based global open banking platform that enables instant payments, has introduced variable recurring payments (VRP), the company announced Tuesday (April 26).
In a company blog post, Matt Parish, the company’s product manager, said VRP is delivered through a single application programming interface (API), which is transparent and speedy.
“With TrueLayer’s API, businesses will be able to connect to select UK banks to take VRP from their customers, from utility bills and subscription payments to rent instalments,” he wrote. “Our VRP API also allows businesses to ‘sweep’ payments, transferring money between two accounts belonging to the same customer.”
In what he called a first-of-its-kind feature, the API promises transparency, speed and control of VRP to users instead of debit and card payments.
Parish said by using open APIs, VRP allows companies to collect recurring payments of any amount from customers. While they are similar to debit and card-on-file payments, Parish said they do not have the issues that affect those methods.
Unlike open banking, direct debit and card payments were not made for speedy digital transactions, he wrote. Typically, it can take as many as five days for a direct debit transaction to settle. When it comes to card payments, the wait can be as long as 10 days.
“This delay is less than ideal for businesses, as it keeps them from managing their cash flow effectively,” he wrote. “And doesn’t let users access the services they want to use.”
A report last summer titled “Open eCommerce: Open Banking As The New eCommerce Accelerator In The U.K. And Europe,” a TrueLayer collaboration, provided a compendium of insights about this important sector and topic.
“The most advanced open banking solutions provide brands, retailers and marketplaces with an agile, plug-and-play payments and financial data architecture,” the report noted. “Open banking APIs allow eCommerce businesses to tap into real-time banking data to power customer engagement initiatives.”