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, referred to as ‘sweeping’ or ‘me-to-me’ payments.
With this launch, TrueLayer is one the first Open Banking providers delivering different recurring payment types – sweeping and non-sweeping – through a single API. Firstly, through sweeping payments that support third party providers such as fintech firms, fulfilling a range of use cases within recurring payments, particularly within the credit, savings, and current account market.
Secondly, TrueLayer is collaborating with 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. Using VRP through TrueLayer enables the amount being collected to vary without needing the account holder to re-consent 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, with less fraud, immediate settlement, and more control for consumers. TrueLayer is already working with businesses who will be going live with non-sweeping recurring payments from May 2022 onwards.
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