Variable Recurring Payments for Subscriptions

Done a search around this forum (because I am new) regarding Monzo using Variable Recurring Payments for subscriptions. Il admit I don’t know a whole lot about this yet but I was wondering if Monzo were going to use VRP to finally manage subscription payments properly like direct debits and standing orders. Also sweeping seems handy for sending between pots not just accounts.

Perhaps I am missing something though?

1 Like

Variable payments can’t be predicated early enough for planning:

Direct debits are requested 3 working days before due from the company so monzo will only see it day 2, which it debits day 3.

Card payments aren’t predictable at all and are taken the time the merchant chooses to take it.

You’d need to manage the variables yourself as monzo won’t know anyway to predict.

People get around this by adding a buffer each month to their bills pots to cover any irregular payments.


It’s a specific API, that only NatWest use for an alternative for Direct Debit, it needs the other banks to adopt it, and hopefully they’ll be a decent alternative to DD long term.

Monzo hopefully will be one of those banks in the next year to be in on this, the interesting bit will be whether we get a ‘scheme’ like we do for DD, and the consumer protections that go with it


The missing thing is consumer protection. But the use case that the open banking people were pushing (and what appeals to me) is to use it for your own accounts, to sweep money into savings or automatically draw money in to avoid overdraft fees.

Interestingly, I think that there were signs of VRPs in the Monzo app teardowns last year, I think (cc @davidwalton) but no sign since.

1 Like

Yeah, the VRP in Monzo is using the sweeping APIs that exist at the mo.

Commercial VRP is where the fun could be

1 Like

I think with how many things are subscriptions these days it would be good to have a similar thing to DD.

1 Like

Thanks all, based off the use cases described by Open Banking in this link below it can be used for subscriptions but I suppose we have to wait for Monzo to adopt as well as third parties that take payments.

Is the consumer protection not the limits that are set for each month per payment? What more protection would there be?

Nah, it’s the stuff the Direct Debit guarantee gives you, which there isn’t for commercial bill paying VRP, and I suspect will evolve in the next 18 months