HSBC UK has announced the launch of sweeping Variable Recurring Payments (VRPs), which will be available to all of its personal or business customers using the bank's Open Banking services. In a nutshell, VRP will allow consumers to use open banking for recurring payments without requiring them to re-authenticate every transaction.
According to HSBC, the new recurring payments service makes them the first bank in the world to complete a managed rollout of VRP guided by the UK’s Open Banking Implementation Entity (OBIE).
“Sweeping VRPs allow for the automated movement of funds between a customer’s own accounts without the need for any manual intervention once the initial consent is set up,” said George Miltiadious, head of Open Banking Channel Management at HSBC.
Image Credit: HSBC
What's Driving This Trend
- Variable Recurring Payments
- HSBC's Variable Recurring Payments disrupts the traditional recurring payments model by using Open Banking services.
- Automated Payment Solutions
- HSBC's automated payment solutions streamline the payment process and eliminate the need for manual intervention, creating opportunities for increased efficiency.
- Open Banking
- HSBC's use of Open Banking for recurring payments opens up opportunities for other banks and financial institutions to explore and capitalize on the benefits of Open Banking technology.
Who This Affects Most
- Banking
- HSBC's launch of Variable Recurring Payments has the potential to disrupt and innovate the traditional banking industry.
- Finance
- HSBC's launch of automated payment solutions could revolutionize finance by increasing efficiency and streamlining the payment process.
- Open Banking Technology
- HSBC's use of Open Banking for recurring payments presents disruptive opportunities in the development and adoption of Open Banking technology in various industries.
