NatWest Group first UK bank to sign agreements with payment providers to create new payment option through VRP
Last editedJun 20223 min read
In an industry first, NatWest Group has signed agreements with TrueLayer, GoCardless and Crezco to offer Variable Recurring Payments (VRP) as a new payment option for businesses and consumers.
Retail customers of NatWest Group will benefit from an additional and convenient way of paying for a range of services, including utility bills and subscriptions.
4 May, 2022, London (UK) NatWest Group has signed agreements with three payment providers – TrueLayer, GoCardless and Crezco – to offer Variable Recurring Payments (VRP) as a new and convenient payment option for businesses and consumers. Today’s announcement, an industry first, means that NatWest Group will be the first UK bank to go beyond the requirement for banks to provide VRP in support of ‘sweeping’ – the automatic transfer of money between two accounts belonging to the same person.
NatWest Group’s VRP offering will enable payment providers to give businesses a new option for managing customer payments for a range of services, including utility bills and subscriptions – complementing existing payment options such as Direct Debits and online card payments.
VRP will let businesses collect customer payments via the Faster Payments service, meaning payments can be received in near-real time.
As VRPs are set up digitally, there’s no paperwork to complete either – saving time, plus reducing the risk of fraud and manual error.
Customers will also benefit from more control over their finances as they’ll be able to set maximum payment amounts and make instant payment cancellations through VRP.
What’s more, in a change to the Open Banking status quo – where customers can consent to single immediate payments only – VRP will let customers consent to businesses taking payments from their account on a regular basis, without having to consent to each payment individually.
Daniel Globerson, Head of Bank of APIs at NatWest Group, commented: “VRP has huge potential for both consumers and businesses. As a relationship bank in a digital world, we’re proud to lead the industry by delivering a new payment option through VRP, which will make it easier for businesses and their customers to manage payments for a wide range of services.”
NatWest Group had already been leading the industry, having built its VRP API for sweeping last year – well ahead of other banks – and having made the first VRP transaction for sweeping in a live environment in December.
Offering VRP as a new payment method also marks a significant development in NatWest Group’s API commercialisation strategy, which is bringing an increasingly wide variety of the bank’s services to customers and partners in innovative and convenient ways.
Jana Reid, Senior Product Partnership Manager at TrueLayer, commented: “There is so much potential that can be unlocked with VRP to deliver value for consumers and businesses. It is significant to see NatWest go beyond the regulatory mandate, embracing a wider approach to deliver new, more efficient and digitally native payment options to its customers. We’re delighted to be collaborating with NatWest once again on this industry innovation and look forward to our relationship developing over the coming months.”
Ralph Rogge, CEO of Crezco, commented: “NatWest has taken the lead in going above and beyond regulatory requirements for VRP, setting an example that we hope others across the industry will follow. At Crezco, we’re proud to play a part in delivering a new and convenient payment method that will bring benefits to businesses and consumers alike.”
Duncan Barrigan, Chief Product Officer and Chief Growth Officer at GoCardless, said: "VRPs will be a game-changer for businesses and consumers alike. From sweeping, which will help us make our money work harder without the hassle, to use cases beyond 'me-to-me' where merchants can take advantage of this digital-first, cost-effective payment method, VRPs will make 'account-on-file' the next big trend in payments. Working with NatWest, with its advanced VRP capabilities, will help us accelerate our vision of building the world's first bank payment network to help businesses access a range of account-to-account payments methods, from direct debit to VRPs, in a single platform."
To learn more about NatWest Group’s API product offering, visit bankofapis.com.
About NatWest Group
NatWest Group is a relationship bank for a digital world. We champion potential; breaking down barriers and building financial confidence so the 19 million people, families and businesses we serve in communities throughout the UK and Ireland can rebuild and thrive. If our customers succeed, so will we.
TrueLayer is a global open banking platform that makes it easy for anyone to build better financial experiences. Businesses of every size use TrueLayer to power their payments, access financial data, and onboard customers across the UK, Europe and Australia. Founded in 2016, TrueLayer is trusted by millions of consumers and businesses around the world. Our vision is to create a financial system that works for everyone.
Crezco is an account-to-account payments API for businesses across the UK and EU. With open banking at our core, Crezco builds customer centric and innovative payment products to help companies grow by saving them time and money. We are designed to make the inefficient efficient.
GoCardless is the global leader in direct bank payment solutions, making it easy to collect recurring and one-off payments directly from customers' bank accounts through direct debit and open banking. The GoCardless global bank pay network and technology platform take the pain out of getting paid for 70,000 businesses worldwide, from multinational corporations to small businesses. Each year GoCardless processes more than US$30 billion of payments across more than 30 countries. GoCardless is headquartered in the UK, with additional offices in Australia, France, Germany and the United States. For more information, please visit www.gocardless.com and follow us on Twitter @GoCardless.
For more information, please contact:
Rachael Neill, Media Relations Manager at NatWest Group
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Geoff Whitehouse, PR and Communications Lead at TrueLayer
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Arnaud Roche, Head of Marketing at Crezco
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Linda Yang, Global Head of PR at GoCardless
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