Open banking: TrueLayer launches ‘industry’s first’ variable recurring payments API
The open banking provider has become the first to support different recurring payment types through a single API.
European open banking platform TrueLayer has created the industry’s first variable recurring payments (VRP) API for both sweeping and non-sweeping payments.
The launch makes TrueLayer the first open banking provider to support different recurring payment types through a single API.
The Competition and Markets Authority (CMA) has mandated the UK’s nine largest banks to provide VRPs that support the automatic transfer of money between two accounts that belong to one person, known as sweeping or ‘me-to-me’ payments.
The CMA recently shared more information on the definition and timeline for the rollout of sweeping for VRPs as pressure mounted over the delayed announcement.
“The mandated approach, while beneficial, only supports payments between an individual customer’s accounts, limiting the ultimate potential of VRP,” TrueLayer’s VRP Product Lead Matt Parish said.
“We are proud to announce the industry's first recurring payments API that goes beyond that mandate to deliver comprehensive payment options that will create a better customer experience.”
The launch comes a few months after high street bank NatWest shared that it had staked a claim in supporting the first live VRP with TrueLayer.
With TrueLayer, sweeping payments will support third-party providers such as fintech firms, meeting a range of needs for recurring payments, particularly within the credit, savings and current account market
TrueLayer is also collaborating with select banks around non-sweeping, offering businesses recurring payments to their customers for a range of services, including utility bills, subscriptions and other forms of digital payments.
This means that users will not have to re-consent to every recurring payment on, for example, utility bills with a fixed payment date every month but varying amounts due.
As a result, businesses can offer their customers an alternative to direct debit and debit cards that is cheaper, faster and less susceptible to fraud with enhanced customer control.
Multiple businesses are due to go live with the payments imminently, and the company has been working with businesses that will go live with non-sweeping recurring payments as early as May.
“We have a number of clients that have seen the potential for VRP to deliver significant benefits to their business and their customers, working with us to implement sweeping and non-sweeping recurring payments in the coming months,” Parish said.
"We believe that, to truly deliver on the promise of Open Banking, boost fintech innovation in the UK and provide businesses and consumers with payment options that work for them, every CMA9 and non-CMA9 bank should make VRP APIs for sweeping and non-sweeping available as soon as possible,” he added.