NatWest partners with paytechs for VRP payment option

NatWest Group has signed agreements with payment providers TrueLayer, GoCardless and Crezco to offer a new payment option through its Variable Recurring Payments (VRP) application programming interface (API).

NatWest partners with paytechs to offer a new VRP payment option

The ‘industry first’ agreement will allow payment providers to give businesses another way to handle customer payments, through the Faster Payments service, meaning transactions can be completed almost instantly.

VRPs are the next phase of open banking, mandated by the UK’s Competition and Markets Authority (CMA), and are expected to be introduced in 2022.

VRP APIs allow third-party providers (TPPs) to initiate a series of payments at varying intervals, enabling faster, more efficient, and more secure payment adoption.

VRP has “tremendous potential” for consumers and businesses, says Daniel Globerson, API bank manager at NatWest Group.

VRP offers many benefits, including streamlining payment journeys, minimizing transaction costs and removing compliance issues associated with keeping card details on file.

The four-party partnership will mean NatWest will be the first UK bank to go beyond requiring banks to provide VRPs in support of ‘swiping’ – the automatic transfer of money between two accounts belonging to the same person .

Customers will also be able to set maximum payment amounts, make instant payment reversals and, unlike open banking where customers can only consent to one-time payments, customers can consent to recurring payments being taken from their account.

Jana Reid, Senior Manager of Product Partnerships at TrueLayer, says, “There is so much potential that can be unlocked with VRP to deliver value to consumers and businesses.”

Duncan Barrigan, Chief Product Officer and Chief Growth Officer of GoCardless, said: “VRPs will be a game changer for businesses and consumers.

“From swiping, which will help us grow our money hassle-free, to using cases beyond ‘me-to-me’ where merchants can take advantage of this digital and cost-effective method of payment, VRPs will “account – on-file’ the next big trend in payments.

In December, NatWest and TrueLayer completed the industry’s first open banking VRP transactions.

NatWest, having developed its VRP API ahead of schedule, was the first of the UK’s nine largest banks to conduct VRP transactions in a live environment, as opposed to a sandbox.

Comments are closed.