European open banking platform TrueLayer has announced a partnership with The Credit Thing to implement recurring payments API. According to TrueLayer, the collaboration will also develop the first consumer Variable Recurring Payments (VRP) transactions in the United Kingdom.
Recurring Payments API Offers Ease Of Connection
Earlier this year, the Competition and Markets Authority (CMA) ordered the nine largest banks in the UK to implement the VRPs. According to CMA, the implementation will enable the automatic transfer of money between two accounts controlled by a single individual. Authority referred to this system as ‘sweeping.’
TrueLayer says it is the first to offer an open banking service for a single API. The company added that the service has enabled businesses to easily connect to different UK banks, taking recurring payments as an alternative to card-on-file and direct debit payments.
The Credit Thing will be helping UK consumers to have access to credits due to thin credit histories. The company’s customers, through the use of open banking, can securely link their bank accounts when applying for credit to prove their creditworthiness. The company says it offers a solution for consumers to easily access credits, simplifying the process for quick credit access.
The New Platform Allows Consumers To have more control
The partnership between TrueLayer and The Credit Thing will enable the latter to use the former’s recurring payment API. This delivers an improved customer experience for repayments without delays. It is faster and more efficient than the conventional method of credit application because of the use of the recurring payment API.
Also, the platform gives consumers far more control. They can use a single payment approval, which eliminates the need to re-authorize or re-authenticate transactions. The payment process is linked to a bank account and it does not expire until it is revoked by the consumer. The Credit Thing says this unique method makes recurring payments API different and more efficient than the conventional method.
Unlike the card-on-file or direct debit method, TruLayer’s recurring payments offer The Credit Thing direct access to deposited funds.
Additionally, the company says the method is a more cost-effective way for the consumers since it removes the fees incurred for card payments. It also does not include operational overheads or has any potential for chargebacks, making it more efficient than direct debit cards.