The Credit Thing goes live with TrueLayer’s Open Banking

TrueLayer, Europe’s leading open banking platform, today announced that The Credit Thing has successfully implemented its recurring payment API and conducted the first-ever consumer Variable Recurring Pays (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’. TrueLayer was the first open banking provider to provide a single API, which allows businesses to connect to select UK bank accounts, including HSBC. This API allows them to take recurring payment as a replacement to direct debit and card on file payments.

The Credit Thing aims to help the over 15,000,000 people in the UK whose credit histories are poor. Open banking allows consumers with weak credit histories to securely link their bank accounts through the application process. This will allow them to prove their creditworthiness. Additionally, virtual cards can be obtained by applying in-app instead of online. These virtual cards can be added to Apple Pay and Google Pay, as well as used to make online purchases.

An existing TrueLayer customer for standalone consumer payments powered by open banking, it is now using the firm’s recurring payment API to deliver an improved experience for consumer repayments. TrueLayer allows consumers to request recurring payments within seconds, rather than cumbersome direct debits that can take days. The Credit Thing then receives immediate notification.

Consumers also have far more control, with 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. TrueLayer’s recurring payments give The Credit Thing instant access to the funds that were deposited. This is in contrast to card-on file and direct debit. It’s also a more cost effective alternative, removing the fees incurred by card payments and their potential for chargebacks, and the operational overheads of managing direct debits.

Colin Hollingsbee is the CIO of The Credit Thing.: “Could this be the beginning of the end for Direct Debits? VRP is a game-changer. We are proud to offer great experiences and be at the forefront of innovation. 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.”

Kirill Zotin is the CTO of The Credit Thing.: “VRP integration may sound complex, but with the TrueLayer partnership it was seamless. From the first conversation, live payments were made in just a few short weeks. This is the future bank, where innovation and agility push the boundaries of existing services. I’m really glad that consumers using The Credit Thing already experience the future of payments.”

Matt Parish, TrueLayer’s Product Lead for VRP, commented: “This is a significant day for the UK payments industry – the first business using variable recurring payments to deliver a better consumer experience. TrueLayer’s first-of-its-kind API brings the transparency, speed and control of VRP to more people in the UK as a replacement for direct debit and card-on-file payments. We’re delighted to be working with an innovator like The Credit Thing who has seen the massive potential of VRP to support its business.”

TrueLayer is the market leader having launched the industry’s first recurring payments API for both sweeping and sweeping in early May. This was followed by NatWest Group TrueLayer signed an agreement to provide VRPs for consumers and businesses. Visit this page for more information about recurring payments.TrueLayer Payments.

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