Sign up (7-day free trial)
thumbnail_image

What Are Variable Recurring Payments (VRPs) And Why They Matter in 2025

Recurring payments keep the wheels of modern commerce turning, covering everything from monthly software licences to energy bills and gym memberships. Yet the tools we use to collect them haven’t changed much since the 1990s. That’s about to shift. Variable Recurring Payments (VRPs), born out of the UK’s open banking framework, promise to replace clunky Direct Debits and card‑on‑file setups with something faster, safer and far more flexible.

What are Variable Recurring Payments (VRPs)?

VRPs allow a customer to give an authorised payments provider ongoing permission to initiate payments from their bank account but only within limits the customer sets upfront (amount caps, frequency caps and an expiry date). Once that consent is in place, payments flow account‑to‑account in real time without the customer having to re‑approve each one.

Why are UK banks rolling them out?

The Competition and Markets Authority (CMA) instructed the UK’s nine largest banks (the CMA9) to build a dedicated VRP API so customers could “sweep” excess cash from their current account into savings or to repay borrowing. That sweeping mandate has accelerated broader interest, paving the way for commercial VRPs – recurring payments to third‑party merchants, now arriving in 2025.

Key benefits of VRP in 2025

Here’s why it’s being seen as the next big thing in recurring payments and how it brings more control to both consumers and businesses.

  1. Real‑time cash flow: Funds land instantly; no more waiting for Bacs cycles.
  2. Dynamic amounts: Change the value right up to settlement, ideal for usage‑based billing.
  3. Customer control & transparency: Users can see every active mandate and the exact caps attached to it inside their banking app.
  4. Lower fraud and no chargebacks: Bank‑level authentication plus immutable A2A rails.
  5. Easy onboarding: A single consent flow replaces multi‑page Direct Debit forms or PCI card capture.

Practical use cases for Variable Recurring Payments

VRP isn’t just theoretical, it’s already proving its value across real-world scenarios. Let’s see how.

Subscription management
VRPs let streaming, SaaS or fitness providers charge variable amounts (e.g., add‑ons, pay‑per‑view) while giving customers full visibility and the option to cancel instantly. This is something cards and Direct Debits can’t match.

Sweeping & personal finance
Surplus funds can be moved automatically from current accounts into higher‑interest savings the moment a salary lands. Then customers can see (and can stop) any sweep in real time, making money management painless.

Utilities & telcos
Metered or usage‑based bills can be settled to the penny, avoiding over‑ or under‑charging while still guaranteeing the supplier gets paid on time.

Why 2025 is critical

Here’s why this year marks a major turning point for the technology’s adoption and potential.

Final word

VRPs marry the best parts of standing orders, Direct Debit and card‑on‑file, minus their drawbacks. Faster settlement, clearer oversight, and customer‑defined limits make them the natural next step in UK payments. With the regulatory groundwork laid and bank APIs now live. 2025 is the year forward‑thinking businesses move their recurring revenue onto this smarter rail.

Join Atoa now and get 7 days of free transactions.

Atoa is the low-cost alternative to card machines, enabling you to take payment from your customers in-store, on the move or via SMS and WhatsApp.

Learn More

Related Posts

Open Banking

How Wedding Payments Benefit From QR Codes

Entrepreneurship

Are Mobile Wallets the Future of Payments for UK Businesses?

Open Banking

How to Use Digital Transactions in Retail

Entrepreneurship

NFC Payments: What They Are and How They Work

Open Banking

How Neobanks are Disrupting Traditional Banking

Open Banking

Exploring the Role of Fintech APIs in Business

Entrepreneurship

Cashless Taxi Payments: How to Attract More Customers 

Entrepreneurship

QR Code Security: Keeping Payments Safe in 2024

Payments

QR vs Credit Card Security: Which Wins for UK Businesses?

Open Banking

Biometric Payments: Secure Transactions for UK Businesses

Open Banking

The Future of Payments in the UK: Get Ready with QR Codes

Payments

Cross-Border Online Payments: A Beginner's Guide

Open Banking

What are UPI Payments?

Entrepreneurship

How Open Banking APIs Fuel UK Fintech

Entrepreneurship

How Mobile Banking Apps Can Transform Money Management

Atoa Business

Understanding UK Payment Regulations

Open Banking

The Future of Shopping In-Store: What's Next in Retail

Open Banking

NFC vs QR Code Payments: Tech Tête-à-Tête

Open Banking

Faster Payments: The Future of Banking

Entrepreneurship

The Best Payment Solutions for Businesses in 2024

Open Banking

Blockchain for UK Business Payments: Is It Worth It?

Open Banking

What is Open Banking? Everything You Need to Know

Open Banking

Digital vs Mobile Wallets: Which is Right for You?

Featured

Data Privacy in Open Banking: How to Stay Secure

Payments

How to Choose a Payment System for a Small Business

Open Banking

How Open Banking Payments Can Cut Costs For UK Businesses in 2025

Payments

A Guide to Implementing Contactless Payment Solutions in UK Restaurants

Payments

B2B Payment Solutions for UK Business Owners: A Handy Guide

Open Banking

Open Banking Payments: A Guide for Business Owners

Entrepreneurship

Why Payment Strategy Matters for Your Business

Payments

How Real-Time Payments are Reshaping UK Businesses

Payments

Cash, Card, or Digital Payments: Finding the Best Option for Retail

Featured

Are QR Codes the Future of Contactless Payments?

Atoa Business

Your Guide to Automated Payment Systems

Open Banking

Green Banking: Sustainability in the UK Financial Sector

Payments

E-wallets vs Cards: Which is Best?

Atoa Business

How to use QR Code Payments on Atoa Business

Open Banking

A2A Payment Security: Tips for Hassle-Free Protection

Atoa Business

QR Codes for Hospitality: How They Work

Payments

E-commerce Payment Solutions for Your Business

Entrepreneurship

How to Open an E-commerce Business in 2024

Atoa Business

Open Banking for Small Businesses: An Introduction

Atoa Business

Online Payment Methods in the UK: A Guide for Business Owners

Open Banking

How to Accept Mobile Payments Online

Open Banking

Open Banking vs Card Networks: A Payment Revolution

Open Banking

How Open Banking Cuts Costs for Law Firms

Open Banking

Market Insights: Open Banking Payments Adoption in the UK

Atoa Business

Top Payment Challenges Facing the Travel Industry

Chargebacks

A Guide to Preventing Chargeback Fraud

Payments

Why Instant Bank Pay Is the Smart Choice for Car Dealerships in 2025

Atoa Business

Pay with Phone: No Cash, No Cards, No Problem!

Entrepreneurship

Why Prepayments are Important in Business

Open Banking

Understanding Payment Initiation Services (PIS)

Open Banking

7 Reasons Open Banking for Law Firms is More Profitable

Payments

Smart Solutions for Billing Challenges in Law Firms

Payments

Top 5 Payment Trends to Watch in 2025

Open Banking

The Future of Payments in an Open Banking World

Payments

What is Tokenisation: How it Works and Why it Matters

Open Banking

How Open Banking is Driving Sales for Car Dealerships

Payments

Tap, Scan, Pay: The New Era of Biometric Transactions

Payments

Is the Traditional Invoice Dead? The Rise of Instant Payments for B2B

Payments

Enhancing Payment Efficiency in the Hospitality Industry: A Better Way to Pay (and Get Paid)

Open Banking

Top 5 Open Banking Payments Providers in the UK in 2025

Open Banking

How Open Banking Helps Local Businesses

Open Banking

Traditional Payments vs Open Banking Payments: The Future of Transactions

Atoa Business

How to Reduce Payment Processing Fees by 50% Without Disrupting Your Business

Payments

Top 5 Worldpay Alternatives for UK Businesses in 2025

Payments

Exploring the Benefits of Cashless Transactions

Payments

Integrating Atoa with POS Systems: A Step-by-Step Guide for UK Businesses

Featured

SMS Payments: A Beginners Guide

Open Banking

Pay by Bank: The New Way to Pay UK Businesses

Open Banking

Payment Links: The Quiet Revolution Happening in UK Businesses

Open Banking

How Open Banking Payments Can Go Mainstream in the UK

Payments

The Security Behind Instant Bank Payments

Payments

The Most Cost-Effective Payment Solutions for UK Business

Open Banking

Benefits of payment links for UK businesses

Open Banking

Why Businesses Should Be Using Pay by Bank

Open Banking

What is Pay by Bank? All You Need to Know in 2025

Payments

5 Reasons Businesses Are Switching to Pay by Bank

Atoa Business

How Pay by Bank in the Travel Industry is Transforming Customer Payments

Open Banking

A2A Payments: Everything You Need to Know

Payments

Why Payment Links Are Gaining Ground

Fancy a quick chat?

Got questions about joining Atoa? Just enter your phone number below and our UK-based Customer Success Team will give you a bell.
*Providing your phone number gives us permission to call you for sales purposes.