TrueLayer launches recurring payments API

Open Banking platform TrueLayer has unveiled its variable recurring payments (VRP) API.

The API is intended for “sweeping” and “non-sweeping” to help change the way customers make and manage e-commerce payments, subscriptions, utility bills and other items.

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 belonging to the same person, known as “sweeping” or “me-to-me” payments.

TrueLayer says it is the first Open Banking provider to deliver different recurring payment types - sweeping and non-sweeping - through a single API.

Firstly, the API supports sweeping payments across credit, savings and current accounts.

Secondly, the VRP can be used for non-sweeping recurring payments for a range of services, including bills. The amount being collected can vary without requiring the account holder to approve every payment.

As a result, businesses can offer their customers an alternative to Direct Debit and debit cards, “that delivers a higher conversion rate at a lower cost”, said Truelayer, with “less fraud, immediate settlement and enhanced control for consumers”.

TrueLayer is already working with businesses who will be going live with non-sweeping recurring payments from May onwards.

“The mandated approach, while beneficial, only supports payments between an individual customer’s accounts, limiting the ultimate potential of VRP,” said Matt Parish, product lead for VRP at TrueLayer.

“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,” said Parish.

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