Thin file lender The Credit Thing is claiming the first live consumer Variable Recurring Payments (VRP) transactions in the UK.
The Competition and Markets Authority has mandated the UK’s nine largest banks to provide VRPs that support the automatic transfer of money between two accounts belonging to the same person, referred to as ‘sweeping’.
The Credit Thing, which uses open banking technology to extend credit to people with thin credit histories, has implemented TrueLayer's recurring payments API to provide an alternative to direct debits and card-on-file payments
Consumers make just a single payment approval that removes the need to re-authenticate or re-authorise transactions, through a payment consent that is tied to a bank account and doesn’t expire until it’s revoked by them. Unlike both direct debit and card-on-file, recurring payments with TrueLayer provide The Credit Thing with instant access to the funds deposited.
Colin Hollingsbee, CIO for The Credit Thing, comments: “Could this be the beginning of the end for direct debits? VRP is a real game changer. We pride ourselves on providing great experiences and being at the cutting edge. That’s why we’re excited to be the first in the industry to do this with TrueLayer, reinforcing our philosophy to deliver on innovation.
“This isn’t innovation for the sake of it. It delivers meaningful benefits - consumers are firmly in control, the service is secure and user friendly, the cost of service is ultra competitive, and regular payment approval rates are likely to be phenomenal.”