Open banking provider Yapily now offers Yapily Variable Recurring Payments (VRP), the ability for users to enable scheduled payments that are not consistent amounts. Yapily is joining other open banking firms in providing the service.
VRP is a service that is mandated by the UK government as a feature provided by financial services.
Yapily stated that Volume, a one-click checkout payments platform, will be using Yapily VRP to enable its UK merchant customers to save money and provide a frictionless alternative to standing orders.
Yapily said it is also enabling more participants within the open banking ecosystem to benefit from VRP by partnering with Ozone API. Yapily and Ozone API are expected to bring a complete solution for banks and financial institutions to go beyond minimum regulatory requirements and commercialize their APIs.
Yapily noted that the Competition and Markets Authority (CMA) mandated that the UK’s nine largest banks must support VRP for sweeping by the 31st of July 2022.
Ben Aier, VP Product at Yapily, stated:
“This is a great example of how Yapily and open banking are helping to create a healthy payments ecosystem where there is value for every participant. We are proud to be breaking down the barriers to innovation in this space and meeting the evolving needs of banks, merchants, PSPs, businesses, and consumers alike.”
Simone Martinelli, founder and CEO at Volume, said that VRP has triggered the next wave of disruption at the checkout.
“It is the direct debit equivalent of open banking, except where the movement of money is quicker, cheaper, and the customer has more control. This has the potential to be transformative for any business. At Volume, we are on a mission to remove hidden fees at the online checkout for both consumers and merchants, and Yapily is helping us to turn that vision into a reality.”
Huw Davies, co-founder and Chief Commercial Officer at Ozone API, explained that by partnering with Yapily they can now deliver the benefits of VRP:
“Together with Yapily, we have everything a bank needs to switch on and monetise this opportunity. Now the CMA VRP for sweeping deadline has passed for the UK’s nine largest banks, it’s our mission to ensure that no bank gets left behind.”
Maria Palmieri, Director of Public Policy at Yapily, reported they have seen a positive response from industry to the implementation of sweeping adding that more collaboration between banks, third-party providers, and policymakers is needed to “ensure the transition from me-to-me to me-to-business payments materialises.”