Earlier this month, NatWest Group announced it has signed an agreement with GoCardless to provide VRPs as a new payment option for businesses and consumers.
Variable recurring payments (VRPs) have long been touted as the next big thing for open banking. Finally, that is starting to become a reality.
GoCardless, an open banking payments platform, has now struck its first VRP customer, Nude.
As a new savings app for first-time home buyers, Nude will see user payments move directly from a saver’s bank account into their Nude Lifetime ISA, negating the need for direct debits.
The Competition and Markets Authority’s deadline for ‘sweeping’ comes into effect at the end of June. This will allow companies such as Nude to gain access to both direct debit and instant, open banking payments through a single integration from providers such as GoCardless.
“When Variable Recurring Payments come in, they can instantly and automatically move their money from any account to their ‘first home fund’ on a regular basis. This will give them more control and a better all-around experience,” said Stephen Doherty, co-founder and Chief Operating Officer at Nude.
Earlier this month, NatWest Group announced it has signed an agreement with GoCardless to provide VRPs, alongside Crezco and Truelayer, as a new payment option for businesses and consumers, making it the first UK bank to go beyond the requirement for banks to provide VRP in support of ‘sweeping’.