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Moneyline, a leading social lender dedicated to financial inclusion, takes a significant step forward in its mission today by issuing its first loan to be repaid using ‘VRP’ – Variable Recurring Payments. VRP is a simple, swift and secure way to collect repeated payments. It’s lower cost than card, quicker than direct debit, and more manageable for both collecting organisation and paying consumer.
With a focus on maximising the value of every £1 for its customers, Moneyline now offers a payment option that can help reduce the amount of interest borrowers pay in real terms. Interest is calculated daily, so paying off a portion of the balance sooner when funds are available, made possible by the flexibility of VRP, results in lower interest payments overall.
Having successfully partnered with Ordo since 2021 for Request to Pay Open Banking services, today Moneyline expands that relationship to include Ordo’s turnkey VRP solution, making collecting loan repayments work for both lender and borrower.
VRP is the modern-day solution for recurring payments and is particularly beneficial for borrowers unaccustomed to traditional monthly payment structures, and those on low or irregular income. This flexible payment method gives customers greater control over their finances, helping Moneyline fulfil its commitment to providing diverse and customer-centric repayment options.
According to the Fair by Design Report (May 2023), “Payment systems and the Poverty Premium,” flexibility of payment methods is essential to addressing financial inclusion. Moneyline has initiated a three-year trial to assess how VRP can expand access to financial services to more individuals.
In addition to offering increased flexibility, VRP has the potential to boost a customer’s digital footprint, enabling greater participation in automated products and services. By providing a payment method that supports financial management, Moneyline aims to help customers achieve greater financial stability.
“We are very excited to be able to offer VRP to our customers who are often excluded from products and services as they struggle making payments on the same day each month. Working with Ordo, who are focussed on offering customers solutions that work for them, has made this process simpler as they have a deep knowledge of the payments systems in the UK ” said Shiona Crichton, CEO at Moneyline, regarding the deployment.
Craig Tillotson, CEO at Ordo said: “We are delighted to be extending our relationship with Moneyline to bring them and their clients the benefits of enhanced consumer control and business cost reduction with our VRP solution . Open Banking Variable Recurring Payments are set to transform payment options in 2024 and Ordo’s fully hosted end-to-end service is market leading, both in terms of the value it provides and its ease of implementation and management. The novel consumer fo cussed credit solution Moneyline is providing with our VRP service is just the start. Later this year, under the guidance of the UK regulators we will be extending our service across the whole finance sector, as well as into energy, water, telecoms and government payments. It’s particularly exciting to be starting this journey supporting Moneyline to drive greater financial inclusion and customer empowerment from VRP.”
Ordo’s cloud native ‘Payments-as-a-Service’ offering, delivers fully managed, white-labelled, turn-key solutions for Open Banking payments including Request to Pay, E-Commerce and QR Code payments; the very latest Open Banking solution, Variable Recurring Payments (“VRP”), is backed by the Financial Conduct Authority, the Payment Systems Regulator, the Competition and Markets Authority, and HM Treasury, as well as the Opposition party to Government.
Ordo’s highly secure service, designed and built by payments experts, provides an array of frictionless payments solutions, which can be deployed at Point of Sale, for invoice collection, from contact centres, and for paper and digital billing; it makes paying and getting paid easier than ever, and is more cost effective than traditional payment methods.
Businesses can access the Ordo platform in a number of ways: through an Ordo Merchant Acquirer/PSP payments partner, via Ordo’s modern APIs, for smaller businesses through our integrations with QuickBooks, Sage, and Xero accounting software, and directly via Ordo’s web/app interfaces.
Ordo’s white label fully managed and hosted services, deliver a business’s brand look and feel to their paying customers, without the need to build bespoke payment journeys or customer management services.
Ordo solutions can also manage refunds and secure customer pay outs and disbursements, as well as account validation.
Ordo was founded by the former management team of the UK’s Faster Payments Scheme in 2018 to use Open Banking payments to provide businesses with a much-needed alternative to slow, high-cost card payments and insecure direct bank payments. Ordo is authorised by the Financial Conduct Authority as a Payments Institution for Account Information Services and Payment Initiation Services (FRN 836070).
Learn more about Ordo: ordopay.com
Try Ordo for free: www.myordo.com
Moneyline is a social lender committed to promoting financial inclusion and accessibility.
Through innovative solutions and partnerships, Moneyline aims to empower individuals and communities by providing access to affordable credit and flexible financial services.
