London-based fintech company Yapily has entered a competitive market with the launch of variable recurring payment (VRPs).
VRPs are an additional open banking API that the nine largest UK banks have been instructed to build by the Competition and Markets Authority. They support third party providers to initiate a series of payments for a customer of variable amounts and at variable intervals.
With open banking in the UK having been popular for a while, VRPs have emerged as a lively sector for fintech firms to battle for supremacy and perhaps make more money.
While open banking platform Yapily has made its entry into the VRP arena today (2 August), its announcement follows on from other companies.
In fact, Yapily has partnered with Ozone API for its VRP launch. Yapily’s first VRP customer is Volume Pay, a checkout payments platform.
- Yapily Yearns for European Open Banking Hegemony via finAPI Acquisition – read the news here
Yapily comments: “We have seen a positive response from industry to the implementation of sweeping, however, only when VRP APIs become more widely available will truly innovative use cases for open banking be unlocked. At Yapily, we believe that more collaboration between banks, third-party providers, and policymakers is needed to ensure the transition from me-to-me to me-to business (non-sweeping VRP) payments materialises.”
As Plaid mentioned last month, Yapily has the same idea and talks about how non-sweeping expands the scope of VRPs to include movement of funds between different accounts, where the payment destination is not restricted to a person’s own account. This could include paying monthly subscriptions or regular household bills, for example.
Yapily notes that it is also advocating for VRPs to be mandated beyond sweeping by working alongside the Financial Conduct Authority (FCA) and the Payments Systems Regulator (PSR) as well as with Her Majesty’s Treasury to highlight the “significant potential these could bring to open banking adoption for both businesses and consumers”.
In other news, in May Yapily reckoned it will be “the largest open banking payments platform in Europe” via the acquisition of finAPI in Germany.
Financial details were not disclosed, but Yapily said it signed an agreement with credit bureau company SCHUFA to buy the fintech firm.
Over the 12 months prior to May, the fintechs enabled customers to process a combined total of $39.5 billion (£32 billion) in payment volumes and connect to more than one million monthly active data users.