Plaid publishes "Commercial Variable Recurring Payments (CVRPs): The £1.5 billion savings opportunity" Report.
Businesses could save over £1.5 billion annually in payment processing fees by extending the use of Variable Recurring Payments (VRPs) to use cases beyond sweeping.
In contrast with sweeping use cases, which allow PISPs to move money automatically between bank accounts held in a consumer’s name (“me-to-me” payments), commercial VRPs (CVRPs) could enable consumers to top up a third-party account, manage active subscriptions, or pay recurring bills such as utilities, among other use cases. They offer consumers more control, more choice, and greater security than traditional payments. Businesses benefit from greater speed, more certainty, and the opportunity to customise CVRPs to improve their customers’ payment experience.
We believe that CVRP issuer fees should be capped, similar to card payments, to avoid banks charging fees that discourage businesses and consumers from adopting these payment methods.