UK-based credit management app Incredible introduces variable recurring payments with TrueLayer

TrueLayer, Europe’s leading open banking platform, today announced a partnership with UK-based loan management app Incredible, which will now provide Variable Recurring Payments (VRP) to its customers.

Using open banking data APIs, Incredible consolidates its customers’ account information into one clear and comprehensive dashboard where they can view, track, predict and repay their loans.

With VRP, Incredible customers can now use the app to set up automatic payments between their bank accounts and their Incredible account. This process, known as “sweeping,” allows clients to automate their repayment strategy and take a longer-term approach to reducing their loans and improving overall cash management.

By using VRP, Incredible gives customers more control over loan repayments. These automatic mobile payments are instant and do not require a direct debit order, saving time and making it more convenient. Instead, customers provide one-time authentication using biometrics, simplifying the setup process and maintaining strict security standards.

The rollout comes at a time when UK consumers need better, more intuitive ways to manage their loans. The Bank of England reports that amid the November 2022 cost-of-living crisis, individuals borrowed £1.5 billion in consumer loans. Credit cards accounted for 80% (£1.2 billion) of that amount. An estimated 1.9 million households also missed their scheduled debt repayments at the end of 2022. What? reports.

The flexibility of VRP is what allows Incredible to deliver never-before-seen value to the repayment space by leveraging common features such as rounding and applying them in the context of lowering customers’ total cost of borrowing. Mass payments allow you to automatically move money in variable amounts between customer accounts, giving them a more flexible and intuitive way to repay their loans.

Yasin Rostom, CEO and co-founder of Incredible, said: “At some point in our lives, we’ve all been victims of unplanned overdraft fees, late fees, and other fees simply because it’s a by-product of a system that does very little to optimize financial sustainability.” Incredible offers a new use case for VRP, facilitating better loan repayments to improve financial well-being. We are excited to work with Truelayer to bring us closer to delivering on the promise of open finance; make money work for people.”

Nick Tucker, Head of Financial Services, TrueLayer, added: “VRP, a new form of open banking technology, represents a step forward in debt management by allowing users to create secure and flexible repayment plans with greater ease and convenience. We look forward to working with Incredible to provide open bank payments that are better responsive to customer needs.”