Fintech firms TrueLayer and Ozone API have made it a competitive week with separate announcements regarding variable recurring payments (VRP) APIs.
VRPs are an additional open banking API that the nine largest UK banks have been instructed to build by the Competition and Markets Authority (CMA). 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.
London-based unicorn TrueLayer was one step ahead this week and says its VRP API is now available for customers to use for both sweeping and non-sweeping use cases. This follows on from December 2021 when NatWest made the industry’s first open banking VRP with the help of TrueLayer.
Sweeping payments support third party providers such as fintech firms, fulfilling a range of use cases within recurring payments, particularly within the credit, savings and current account market.
TrueLayer explains that it is collaborating with select banks around non-sweeping offering businesses recurring payments to their customers for a range of services, including utility bills, subscriptions and other forms of digital payments.
Meanwhile, Ozone is a developer of standards-based software for open banking and open finance. It’s also based in London and has unleashed a suite of solutions.
One of these was an upgrade to its platform to provide banks with the tools needed to expose VRP APIs and “monetise the opportunity”. Ozone says it was the first to enable VRP when the standards were updated last year.
Ozone also points out that its founding team was involved in the creation of the UK open banking standard, and delivered the sandbox for the Open Banking Implementation Entity (OBIE).
The CMA has set a deadline of July 2022 for the UK’s nine largest banks to implement VRPs for sweeping services and so banks could be unveiling their own commercial or premium VRP offerings soon.
Both TrueLayer and Ozone were busy this week – and they are also both reasonably open with information about their customers.
Ozone powers open finance interfaces for more than 50 banks and financial institutions around the world. Customers listed on its website include StormPay and Tide.
TrueLayer has been in the news more (or at least sends out more emails to the press). Earlier this month, it revealed a product launch in Europe and a new deal Down Under with MogoPlus.
Last month it secured a deal with ETX Capital in London to provide a payments platform to deliver deposits and withdrawals for customers.