HSBC UK Launches Variable Recurring Payments for Open Banking Services

HSBC UK has rolled out sweeping variable recurring payments (VRP) to all its personal and business customers who use open banking services.

VRP allows businesses and consumers to use open banking for recurring payments of varying amounts, without the need to re-authenticate every transaction.

The UK's largest banks have been directed to introduce VRP by the Competition and Markets Authority.

George Miltiadious, head of Open Banking Channel Management (UK) at HSBC, says: "Sweeping VRPs allow for the automated movement of funds between a customer's own accounts without the need for any manual intervention once the initial consent is setup."

"This service can, for example, be used to pay off a monthly credit card bill, move money regularly into a savings account, or to reduce an overdraft balance."

"We're looking forward to working with third party providers to drive sweeping adoption for the benefit of consumers across the UK."

GoCardless, Plaid, Yapily and Truelayer are among third party suppliers to have launched VRP offerings as part of their open banking playbook.

Source: Finextra