More than three quarters of UK PSPs and ISVs are planning to integrate VRP options into their offering. But according to research released by Nuapay, 63% believe that the business benefits of VRPs need to be made clearer. Meantime, 57% believe that a better regulatory structure is required to make RtP a possibility.
PSPs expect more than half (51%) of their payment flows to convert to Open Banking within the next three years. ISVs predict this will reach 57%.
Annemarie Graham, Director of Strategic Partnerships, Nuapay, said: “The growth anticipated from PSPs highlights the amazing momentum behind Open Banking. Expecting over half of payment flows to come from Open Banking in three years is huge. The PSPs that don’t ride this wave will certainly get left behind.”
With businesses noting open banking’s potential, many are exploring the innovative use cases delivered by the technology.
VRP and RtP: two of the most exciting use cases of open banking
Nuapay says that Variable Recurring Payments and Request to Pay are proving to be two of the most exciting use cases of open banking. VRPs arguably present an improved way for billers and merchants to collect monies due. There is, for example, a minimal administrative burden on themselves or their customers. RtP provides a secure messaging framework through which merchants can request payments from customers in the form of a message. More than three-quarters (76%) of PSPs and (78%) of ISVs are planning to integrate VRPs or RtP into their offering in the future.
Brian Hanrahan, CEO, Nuapay, added: “It’s fantastic to see so much optimism from PSPs and ISVs regarding the growth of open banking, with our findings highlighting that they expect even faster growth in the coming three years. VRPs have the potential to fuel this next stage of adoption. However, the industry needs a standardised framework for this to happen. In the meantime, we have created an alternative solution, Authenticated Mandates, that PSPs/ISVs can use now, that interweaves Open Banking with Direct Debits.”
