Variable Recurring Payments (VRPs) are account-to-account payments that let a customer authorize a business to collect recurring amounts that vary in value and timing, directly from their bank account. For PayFacs, VRPs and their equivalents such as Pix Automático, PayTo or UPI AutoPay are a lower-cost, lower-churn recurring rail to offer merchants alongside card-on-file.
Recurring payments have long meant cards on file or direct debits. This article, updated in October 2026, explains what VRPs are, which countries have an equivalent, where they stand in 2026, why they matter for PayFacs, and how to offer them. It includes NORBr's interview with Jordan Lawrence, Co-Founder and Chief Growth Officer of Volt, conducted in April 2024 by Charles Guinet of NORBr.
What are Variable Recurring Payments (VRPs)?
A VRP is a standing permission, or mandate, that a customer gives through their bank for a business to initiate payments from their account within agreed limits: maximum amount per payment, per period, and duration. Within those limits, the business collects payments without the customer authenticating each one.
Unlike a direct debit, the payment runs on instant rails and the customer can see and revoke the mandate in their banking app. Unlike a card on file, there is no card to expire or be replaced, and no interchange. The term VRP comes from the UK, where it was first defined under open banking.
Which countries have a VRP equivalent?
Several real-time payment systems now offer the same capability under their own names:
- Brazil, Pix Automático: recurring payments on Pix, launched by the Central Bank of Brazil in June 2025.
- Australia, PayTo: mandates on the New Payments Platform for recurring and one-off payments.
- India, UPI AutoPay: recurring mandates on UPI, used for subscriptions, utilities and installments.
- Europe: the SEPA Payment Account Access (SPAA) scheme lays groundwork for dynamic recurring payments, but adoption remains limited.
- United States: recurring bank payments still rely mostly on ACH rather than an instant-rail mandate.
The #PayWorldTour guides describe these methods market by market, and the A2A payments article covers the underlying real-time systems.
Where do VRPs stand in 2026?
In the UK, VRPs have long been limited to sweeping between a customer's own accounts. Commercial VRPs, for payments to businesses, are now arriving in waves: according to Payment Expert (May 2026), the first wave, covering regulated financial services, utilities, rail, government and charities, was set to go live in June 2026, with e-commerce and lending expected in a second wave.
Elsewhere, Pix Automático is live in Brazil, PayTo and UPI AutoPay keep extending to new use cases, and Europe is still building the framework. For PayFacs, VRP-type rails are moving from pilots to products their merchants will ask for.
Why are VRPs strategic for PayFacs?
- Lower churn: no card expiry or replacement, so fewer involuntary failures on recurring charges.
- Lower cost: account-to-account rails avoid card interchange and scheme fees.
- Less fraud and fewer chargebacks: the customer authenticates the mandate with their bank, and card chargebacks do not apply.
- Instant settlement: funds arrive in seconds, which helps merchants' cash flow.
- Differentiation: a PayFac that offers VRPs next to cards gives its merchants a choice competitors may not have yet.
How does Volt see VRP adoption and its challenges?
Excerpts from the April 2024 interview between Charles Guinet (NORBr) and Jordan Lawrence (Volt).
Charles Guinet: "Jordan, could you enlighten us on VRPs and their transformative impact?"
Jordan Lawrence: "VRPs represent a monumental shift in financial transactions. They're not just another payment method; they allow for dynamic, account-to-account payments based on actual, not estimated, needs. This brings flexibility, enhances security and streamlines the user experience. By directly linking bank accounts for recurring payments, VRPs bypass traditional barriers, offering a smoother, more intuitive process."
Charles Guinet: "How is Volt integrating VRPs into the financial ecosystem?"
Jordan Lawrence: "Our approach involves developing secure, scalable platforms that support VRPs' dynamic nature. We're collaborating with banks and regulatory bodies to ensure these systems are robust and ready for widespread adoption."
Charles Guinet: "What do you see as the main challenges and opportunities?"
Jordan Lawrence: "The journey towards VRP adoption encompasses regulatory alignment and system compatibility challenges. However, the opportunities far outweigh these hurdles. VRPs hold the potential to significantly reduce operational costs for businesses and give consumers a level of control and transparency previously unseen."
Why is VRP adoption slower in Europe than in the UK?
Charles Guinet: "Could you share your insights on the slower-than-expected launch of VRP solutions in European markets, known as Dynamic Recurring Payments?"
Jordan Lawrence: "The European market presents unique challenges, including diverse regulatory environments and the need for extensive system upgrades. Adoption rates vary significantly, with regions like the Nordics and the UK leading the way. This often comes down to regulatory support, technological infrastructure and market readiness. In the leading regions, progressive regulation, high digital literacy and strong collaboration among financial players create an ideal ecosystem."
Which use cases benefit most from VRPs?
Jordan Lawrence: "In the subscription economy, VRPs enable services to adjust billing based on actual usage, offering a fairer, more transparent model. In utilities, they allow for precise billing based on consumption. Healthcare can offer flexible payment plans for treatments, education can adjust fees based on course access, and retail loyalty programs can tailor benefits more closely to consumer behavior."
For a PayFac, these are the merchant segments to approach first: usage-based subscriptions, utilities and installment plans, where variable amounts and card failures cost the most.
How can a PayFac offer VRPs under its own brand?
By adding VRP-type methods to the same infrastructure that runs cards and wallets. On NORBr, providers such as Volt are available in the global payment network, activated per merchant and market, and recurring flows run on the recurring payment infrastructure, alongside network-tokenized cards.
Routing rules decide which method and provider handle each payment, and the merchant sees one set of reports whatever the rail. The token migration article covers the card side of recurring payments.
Sources
- Payment Expert, "UK cVRPs wave one launch", May 22, 2026
- Banco Central do Brasil, Pix
- Interview with Jordan Lawrence, Volt, by Charles Guinet, NORBr, April 2024
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