The UK has laid the groundwork for VRP. Banks support sweeping (or “me-to-me”) use cases, and the industry is moving to commercial VRP for low-risk scenarios, with broader rollout expected through 2026 and beyond. Open Banking payments are scaling fast. Industry updates show Open Banking transactions rose strongly through 2025, with VRP volumes nearly doubling (+98% year-on-year), showing more consumers using Open Banking for recurring “me-to-me” transfers. 

Each collection is a bank-to-bank payment, confirmed in near real time. There are no card details to manage or store. Strong customer authentication and clear consent lower fraud risk. You avoid chargebacks and the back-office work they create. Refunds still sit with you, but you can pay them out in minutes.

All of that said: it may be the right time to test VRP for subscriptions and usage-based bills – it could help you reduce costs and keep customers for longer.

A customer gives a one-time consent that sets the rules:

• Who can collect the money and from which account
• How much can be collected in one go and over a period
• How long the consent lasts and how to stop it

Here’s a simple model you could adjust to fit your own flows. As you’ll see, the number can be quite compelling:

• Failure rates: direct debit failures often sit around the low single digits. If you collect 2 million subscription payments a year and reduce failures by 1% with VRP and better consent flows, that is 20,000 fewer failed payments to chase.
• Involuntary churn: if 30% of churn is linked to payment failure and you cut failures, you reduce cancellations and support contacts.
• Cost to serve: account-to-account can be cheaper than cards when you include interchange, scheme fees, chargebacks, and retries. At scale, a small pence-per-transaction difference adds up.
• Cash flow: near real time settlement improves time to cash. If you pull one day earlier on a material share of your collections, the working capital gain is clear.
• Fraud and disputes: VRP removes card exposure and chargebacks. You still need fair refunds, but your dispute handling and write-offs will likely fall.

These figures are illustrative. Your sector, mix of banks, and pricing will drive the outcome.

1. Subscriptions with variable add-ons, upgrades, or pauses
2. Usage-based billing where consumption changes month to month
3. High-value repeat services where chargebacks and card fees bite
4. Bill-on-behalf flows, for example marketplaces and platforms

Start where you have the clearest value and the least complexity.

Map your billing flows: document how you sign up customers, how you collect, and where you see failures or late payments. Fix the obvious blockers first.

Design consent for clarity: keep the consent page simple. Explain what VRP is, the limits, and how to stop it. Use plain language. Remind customers in-app or by email before the first collection and when limits change.

Integrate the APIs and data: create, amend, and revoke consents over APIs. Capture the consent id, limits, and expiry in your billing system. Use payment status webhooks to update ledgers, access, and customer emails in real time.

Add trust and checks: use name-check tools such as confirmation of payee for first payments to reduce misdirected payments. Apply device risk and velocity controls. Keep a fast track for refunds to build trust.

Run a controlled pilot: pick a segment, for example new sign-ups on a flexible plan. Run for 8 to 10 weeks with a holdout. Track conversion to VRP, payment failures, involuntary churn, time to cash, support contacts, and refund handling time.

Keep the metrics small and stable so trends are clear.

1. Conversion from sign-up to first successful payment
2. Payment failure rate and retry success within the window
3. Involuntary churn rate and support contacts per thousand customers
4. Time to cash and refund time
5. Fraud losses and misdirected payment rate

Use your baselines for at least a quarter to show the change.

Here are a few important considerations to help you minimise risk whilst maximising the benefits of VRP for your business:

• Controls: set sensible limits by product tier and customer history. Show limits in the account and include simple ways to change or pause.
• Consent logs: keep audit-grade records of consent, changes, and collections. Make them easy to retrieve for care and compliance.
• Pricing and ops: agree a predictable VRP fee model with your provider. Plan for peak periods with clear routing and fallbacks.
• Fraud and scams: VRP reduces card exposure, but you still need controls against social engineering and account takeover. Train teams and monitor patterns.

NatWest supports Open Banking payments across one-off and recurring use cases through our Payit™ Variable Recurring Payments API – offering VRP collection with near real time settlement, name checks to reduce misdirected payments, and APIs that connect to your billing and care systems.* 

Our experts are here to help your business get more from every payment. If you feel Payit could help your business and want to learn more, please visit our website.

1. Pick one product or market where VRP has clear value
2. Ship a clean consent flow and store consent data where billing can use it
3. Wire payment status into your ledger and care tools
4. Run a pilot with a holdout group and measure hard outcomes
5. Scale in waves and keep a monthly review to tune limits, flows, and copy

*Payit removes the interchange and scheme fees associated with typical card payments. Eligibility criteria and fees apply. You must hold a business current account with the NatWest Group and you will need to sign up to fill Payit terms and conditions. You will need to allocate technical resources to work with NatWest to integrate the solution. Fees are based on the volume and average value of e-commerce transactions. Speak to a NatWest Relationship Manager for further information.