NatWest enables UK’s first ‘non-sweeping’ customer payments

NatWest Group customers made the UK’s first-ever Variable Recurring Payments (VRP) for ‘non-sweeping’ use cases.

NatWest Group is the first UK bank to go beyond the requirement for banks to provide VRP for sweeping – the automatic transfer of money between two accounts belonging to the same person.

The bank is going further by offering VRP as a new and convenient payment option for businesses and consumers – complementing existing payment options such as Direct Debits and online card payments.

NatWest customers made the first non-sweeping VRP payments to Charity Right, and Pink Chilli. Charity Right, an international charity, provides nutritious school meals every day to children who are struggling with hunger. Pink Chilli is an e-lettings software provider with a single platform to transform the property industry.

Sajad Mahamood, CEO, Charity Right, stated:: “We’re delighted to be the charity partner in this innovative trial with GoCardless and NatWest. VRPs allow our supporters to give in a way that suits them. Recurring donations are vital for charities. These incremental donations will bring us that much closer to reaching our goal of providing regular, nutritious school meals to children around the world, lifting themselves, their families and even their communities out of poverty.”

NatWest Group’s VRP offering enables payment providers to give businesses a new option for managing customer payments for a range of services, including utility bills, subscriptions and charitable donations.

VRP allows businesses and organizations to collect customer payment via Faster Payments. Payments can be received within a matter of minutes.

As VRPs are set up digitally, there’s no paperwork to complete either – saving time, plus reducing the risk of fraud and manual error.

Customers have greater control over their finances and can set maximum payment amounts, cancel payments instantly via VRP, and can even make payment cancellations.

Daniel Globerson, Head of Bank of APIs for NatWest Group Comment: “As a relationship bank for a digital world, we’re committed to offering innovative and convenient payment methods to businesses and consumers. We’re delighted that our customers are now experiencing the benefits of VRP, and we’re proud to see organisations such as Charity Right using VRP to manage charitable donations.”

The first non-sweeping VRP payments were supported by Charity Right’s integration with GoCardless and by Pink Chilli’s integration with TrueLayer.

TrueLayer, GoCardless, and TrueLayer were the first payment service providers to whom NatWest Group had signed an agreement to offer VRP as a payment option.

Duncan Barrigan is Chief Product Officer and Chief Grow Officer at GoCardless, said: “We’re proud to play an integral role in this market-first pilot, proving the value of VRPs beyond “me-to-me” transactions and powering donations for Charity Right. This trial represents the first step in making VRPs part of everyday life, from regular giving to subscription payments to repeat purchases at our favourite retailers.”

Jana Reid is Senior Product Partnership Manager at TrueLayer.: “This is another significant day for the UK payments industry and made ‘account on file’ a reality. We’re proud to be leading the industry with NatWest who have gone beyond the regulatory requirements for VRP and, as a result, enabled us to collaborate with clients across a broad range of use cases. Pink Chilli, for example, has embraced VRP to benefit from a faster, more secure and lower cost alternative to Direct Debit and debit cards for collecting rental payments.”

NatWest Group previously announced that it also plans to pilot VRP through Payit™ – its open banking payments proposition – by offering VRP as a payment option for NatWest Rapid Cash customers in H1 2022.

Today’s development also follows TrueLayer’s announcement last week that it had conducted the first consumer VRP for account sweeping.

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