HSBC launches variable recurring payments for open banking customers

HSBC rolled out a variable recurring payments service that allows automated payouts of varying amounts

HSBC

HSBC launches variable recurring payments for open banking customers. Source: shutterstock.com

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.

"We’re looking forward to working with third-party providers to drive sweeping adoption for the benefit of consumers across the UK.”
George Miltiadious
head of Open Banking Channel Management (UK) at HSBC

Some third-party suppliers like GoCardless, Plaid, Yapily and Truelayer have already launched VRP offerings as part of their open banking services.

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