GoCardless has snagged its first Variable Recurring Payment customer, Nude, the savings app for first-time buyers.
In addition to using GoCardless’ Instant Bank Pay for one-off payments, Nude will be among the first businesses in the UK to use the feature for Variable Recurring Payments (VRP) as the CMA’s deadline for ‘sweeping’ comes into effect.
Stephen Doherty, co-founder and chief operating officer at Nude, says: “GoCardless’ Instant Bank Pay feature has been hugely popular with our users, who see their deposit grow with every transfer. And when Variable Recurring Payments come in, they can instantly and automatically move their money from any account to their ‘first home fund’ on a regular basis. This will give them more control and a better all-around experience.”
Although the CMA’s sweeping deadline is July, there are varying levels of bank readiness across the industry.
“We’d love to get all our users onto open banking payments. It gives them peace of mind to see their transfer appear immediately, not to mention a huge motivational boost,” says Doherty. “But we’re also aware some banks won’t be able to support VRPs right at the start. That’s why we value the ability to access both Direct Debit and open banking payments through GoCardless, ensuring all of our users can easily transfer money onto the app.”
GoCardless has been active in the VRP space since 2019, when it took the first live transaction through a sandbox developed by the OBIE. Earlier this month, NatWest Group announced it has signed an agreement with GoCardless to provide VRPs as a new payment option for businesses and consumers, making it the first UK bank to go beyond the requirement for banks to provide VRP in support of ‘sweeping’. The company is also working on a ‘non-sweeping’ VRP pilot which will launch shortly.