TrueLayer, a pioneering open banking platform in Europe has come up with remarkable innovation. This time, it has strengthened its stature in the industry by creating the first open banking Variable Recurring Payment (VRP) transactions with NatWest. This API will be used for sweeping, non-sweeping, enabling customers to make and manage e-com payments effortlessly, and more.
Daniel Globerson, Head of Bank of API, NatWest Group, said, “VRP is a ground-breaking innovation that has huge potential to benefit consumers and businesses. It demonstrates the value of industry collaboration, which is crucial if Open Banking is going to evolve into Open Finance.”
NatWest is a recognised name across the UK, being the leading banking industry, it has created and developed its VRP API before the schedule, allowing TrueLayer for a smooth collaboration. The transactions have unveiled that VRP works even before their introduction in 2022.
Competition and Markets Authority (CMA) have instructed the nine largest UK banks to build VRPs, the additional Open Banking API for sweeping. VRP helps third-party providers like TrueLayer to start a series of payments of different amounts for a customer, and at different intervals, also allows hassle-free money transactions.
Contrary to the present day Open Banking status where TPPs are capable to initiate a single payment, and consumers must verify each payment separately, this innovation will change the scenario. Instructions given by CMA are intended to enable TPPs can offer recurring payments to any customer of those nine banks.
Matt Parish, Product Lead for VRP, TrueLayer, cited, “VRPs have been discussed for years as a missing part of Open Banking – now we need to test these APIs to be thoroughly prepared and ensure they deliver on their promise for consumers. It’s refreshing to see an innovator like NatWest grasp its importance so early on and embrace VRP. We’re proud to have collaborated with them on this important industry milestone. There is so much potential that can be unlocked with VRP that it would be hugely beneficial for non-CMA9 banks who see the value of building these APIs for their customers, to do so in similar timelines to the CMA9. We view it as just the beginning of an Open Banking revolution.”