The news delivered by Token’s Chief Product Officer Charles Damen and NatWest Group’s Head of Open Banking Daniel Globerson during a panel session on VRP at Open Banking Expo UK in London means NatWest Group now has agreements with six payment providers to offer VRP as a new payment method.
Token’s white label-ready platform is built to enable PSPs, gateways and acquirers to launch and scale account-to-account payment propositions. Token’s connectivity for AIS and PIS in the UK and Europe reaches over 250 million potential end-users of Open Banking services in 14 countries, all through a single API and interface.
As Charles Damen, Chief Product Officer, Token, said, VRP came through the CMA9 mandate as a compliance element, but the technology can be used for wider applications - the non-sweeping use cases.
Non-sweeping use cases include providing a convenient alternative to existing payment options, such as direct debits and online card payments.
Token also has plans to make VRP for non-sweeping services available through other leading banks in the United Kingdom. The company is currently working with Payment Service Providers (PSPs) and merchants to establish trials for non-sweeping services that will ultimately deliver a frictionless user experience across a range of use cases, including e-commerce payments.
On their part, NatWest Group previously announced that the first non-sweeping VRP payments were made earlier in 2022 by NatWest customers to Charity Right, an international charity that provides children with nutritious daily school meals, and to Pink Chilli, a lettings software provider.
Token launched an industry survey report on VRP, revealing that industry participants see the three most compelling non-sweeping use cases as subscription service payments, utility bill payments, and one-click ecommerce payments, according to the official company post. A third (32%) of respondents believe a frictionless user experience that excludes SCA will be the main factor driving user adoption of VRP for non-sweeping services.
Data cited by Token indicates that Open Banking payments are predicted to exceed USD 116 billion in 2026, from just under USD 4 billion in 2021, representing a 2800% increase across five years.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now