Plaid, a London-based open banking platform and data aggregator, has launched a variable recurring payments product. Currently, Plaid has a system in place for periodic, routine transfers of funds from one account to another belonging to the same owner. The ability to authorize future payments with a single authorization is what Plaid’s new variable recurring payments (VRP) USP will allow. This can minimize fees and enable one-click purchases of recurring payment options. The company discovered that UK businesses can save up to £1.5 billion if the current VRP option is expanded beyond its mandated use cases and transaction costs can be controlled. To this end, Plaid has urged lawmakers to set a cap on issuer costs at ten basis points. This would keep VRP fees slightly lower than interchange fees for card payments, which are capped at 0.2 percent for debit cards and 0.3 percent for credit cards.
Plaid Jumps to Ludicrous Speed With New Variable Recurring Payments Product