Tink Variable Recurring Payments (VRP) is an open banking payment solution that enables businesses to collect automated, pre-authorized payments of varying amounts directly from customer bank accounts. Unlike traditional recurring payments, which are fixed in amount and frequency, VRP allows for flexible billing based on actual usage or changing needs, with customers setting maximum limits and transaction parameters. The solution leverages Tink’s API platform to provide secure, real-time payment initiation, strong customer authentication, and compliance with PSD2 regulations. VRP is designed to streamline payment processes for use cases such as utility bills, subscriptions, and on-demand services, offering a more convenient, transparent, and cost-effective alternative to direct debit and card-based recurring payments.

Key Features

Automated Variable Payments Enables pre-authorized, automated payments of varying amounts and frequencies.

• Customers set maximum limits and transaction rules
• Payments adapt to real usage or consumption

Open Banking API Integration Connects to a wide range of European banks for seamless payment initiation.

• Real-time payment processing
• Broad bank coverage

Strong Customer Authentication (SCA) Ensures secure authorization and minimizes fraud risk.

• Biometric and multi-factor authentication
• PSD2 compliance

Instant Settlement and Transparency Provides near-instant payment settlement and clear transaction tracking.

• Reduces settlement times compared to card payments
• Real-time monitoring and analytics

Easy Modification and Cancellation Customers can easily adjust or revoke payment mandates.

• Greater control and flexibility
• Reduces risk of overpayment or unwanted charges

Benefits

Flexibility for Businesses and Consumers Supports dynamic billing models and adapts to changing needs.

• Ideal for usage-based services and variable subscriptions
• Reduces administrative overhead

Lower Costs and Faster Settlement Bypasses card networks and direct debit fees.

• Instant or near-instant settlement
• Lower transaction costs

Enhanced Security and Compliance Meets regulatory requirements and reduces fraud.

• SCA on every transaction
• Transparent authorization process

Improved Customer Experience Streamlines payment setup and management.

• No manual intervention for each payment
• Easy to modify or cancel mandates