3 lessons for VRP in 2023
It’s been a big year for the development of variable recurring payments. Product leaders from Chip, Curve and iwoca tell us why and explain what's to come.
Looking back on 2022, it’s clear that this year saw a major turning point for variable recurring payments (VRPs). After months of anticipation, the Competition and Markets Authority (CMA) clarified its mandate around sweeping, or the movement of money between accounts owned by the same person. Under the updated definition, the UK’s nine biggest banks still had to introduce application programming interfaces (APIs) that would let customers sweep funds between their own accounts — but for a much narrower range of use cases.Since then, banks have partnered with third party providers to roll out VRP products that meet these requirements. But banks like NatWest have gone even further, allowing customers to pay for utility bills, subscriptions and more with VRPs. As the technology matures, more companies are putting it to use for both sweeping and non-sweeping purposes. Leading fintechs and challenger banks are harnessing the power of VRPs for everything from loan repayments to automatic savings and more.To see how companies are making the most of VRPs, we spoke to Nicole Bianchi, Product Manager at Chip; Justin Sebok, Head of Product at Curve; and Joost Versteeg, Global Director of Payments and Compliance at iwoca. Watch the video below to see why they're excited about VRPs.
As 2023 approaches, VRPs have the potential to bring fast, transparent and secure recurring payments to even more businesses and consumers. So what do providers and early adopters need to do to make that happen? Here are a few of the key insights that emerged from our discussion with Nicola, Justin and Joost.