HSBC rolled out a variable recurring payments service that allows automated payouts of varying amounts
HSBC UK has introduced variable recurring payments (VRP) to individual and business customers who use open banking services. VRP enable recurring payments of varying amounts, without the need to re-authenticate every transaction. Once the initial consent is set up, there is no need for manual intervention on further payments.
VRP is a hot topic in open banking discussions today. It allows customers to safely connect authorised payment service providers to their bank accounts. Providers can then make a series of payments on a customer’s behalf within agreed parameters. The option offers more control and transparency than existing recurring payment alternatives such as Direct Debit or continuous payment authority (CPA).
The service can be used to pay off a monthly credit card bill, move money regularly into a savings account, or reduce an overdraft balance.
The largest British banks have been guided to introduce VRP by the Competition and Markets Authority.
Some third-party suppliers like GoCardless, Plaid, Yapily and Truelayer have already launched VRP offerings as part of their open banking services.