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The future of Variable Recurring Payments: trends and innovations

Unveiling the future of Variable Recurring Payments

Variable Recurring Payments have radically reshaped the banking landscape, changing how the world does business.

But this revolution in financial transactions is still underway, with Open Banking technology powering product innovations and offering new opportunities for all.

What’s next in this exciting and dynamic sector of the financial ecosystem? 

Let’s look at emerging trends and developments and consider the future of variable recurring payments.

Technological advancements shaping the future

Blockchain technology, closely associated with cryptocurrency transactions, also offers several benefits for the future of variable recurring payments, focused on more robust security, improved automation and transaction transparency.

For example, â€śsmart contracts” enable automation for self-executing transactions, with streamlined payments authorised without intermediaries or manual intervention.

Blockchain integrates transparent and tamper-proof processes, delivering secure and permanent payment ledgers and transaction histories. 

The decentralisation offered by blockchain technology also provides greater system resilience and seamless near-instant cross-border payments. 

Other trends and innovations include:

  • Artificial Intelligence (AI) is building on Open Banking innovations to enable new developments in payment personalisation, enhancing user experience.
  • Dynamic pricing enables pricing strategies that manipulate prices to reflect real-time market conditions, matching supply and demand.
  • Credit scoring now uses AI protocols to incorporate multiple sources to deliver fairer and more accurate decisions for credit applications.
  • Mobile wallet innovations are the most significant change in how people pay for products and services, monitor their finances and interact with financial institutions. 
  • Contactless payments made with mobile devices offer speed and convenience for recurring daily transactions, including public transport and retail purchases.

Enhanced security measures

Keeping pace with the future of variable recurring payments requires close attention to reducing the risk of data breaches and financial fraud when new payment protocols are introduced.

These fast, flexible financial transactions have revolutionised the user experience, so enhanced security measures must be utilised to maintain consumer confidence in this rapidly evolving economic environment.

Artificial Intelligence algorithms analyse millions of transactions and user spending patterns to automatically detect anomalies that reveal fraudulent activity.

This enables financial institutions to prevent account attacks in real time, protecting their customers and enhancing trust and confidence in their platforms.

Biometric authentication with fingerprint, iris or facial recognition protocols is the primary method for confirming user identity.

Tokenisation also assists in fraud prevention, completing transactions without requiring as many details of a customer’s account as before.

Multi-factor authentication adds another layer of security, requiring real-time randomly generated passwords or QR codes to confirm “in-app” transactions. 

Regulatory landscape and compliance

The future of variable recurring payments depends on maintaining consumer confidence in a fast-changing financial ecosystem.

That requires a robust regulatory framework, adherence to relevant data protection legislation (GDPR and PSD2), and a commitment to compliance that protects all parties from unnecessary risk.

Authentication protocols are central to fraud prevention, focusing on biometrics and multi-layer encryption to confirm user identity and authorisation for account access.

Ensuring consumers have given consent to share their personal data with third-party financial API platforms is equally important.

Stricter consumer protection measures may impact the future of variable recurring payments if compliance with national and international financial regulations is not maintained.

As cyber threats continue to increase in frequency and sophistication, financial institutions must respond appropriately by focusing on the security of variable recurring payments. 

Balancing consumer privacy and data protection is a critical concern for the future of variable recurring payments.

Solutions depend on transparency, clear communication and compliance with relevant regulations at all levels, ensuring that financial institutions remain responsive to dynamic changes in the marketplace.

The rise of the subscription economy

The ongoing growth of subscription-based business models offers opportunities for product innovation and further developments in the future of variable recurring payments.

Subscription models are changing how people pay for goods and services, disrupting traditional methods and enabling novel solutions to be adopted. 

Streaming services like Netflix, Spotify, and Amazon Prime are examples of how the subscription model has increased in popularity in recent years.

Financial APIs enable flexible payment plans with greater levels of personalisation that more closely mirror real-time consumer demand. 

These innovations allow customers to easily modify subscription payments, pause memberships or customise billing dates to match their income streams.

“Smart” devices can be used to monitor the usage of subscription-based services and complete payments autonomously.

The future of variable recurring payments is strongly linked to this digital transformation in consumer behaviour.

The convenience, accessibility, flexibility and scalability of e-commerce solutions like subscription models are predicted to take a more significant share of the economy in the coming years.


Trends and innovations in the future of variable recurring payments indicate that there is significant opportunity for continued growth and development.

VRPs represent a break from traditional banking methods like direct debits and standing orders, liberating companies and consumers from rigid payment protocols.

The speed, simplicity and convenience of VRPs have proven popular with consumers, supported by robust data security and regulatory compliance.

Future innovations using Open Banking technology and the rise of the subscription economy will surely lead to even greater market share for VRPs in the years ahead.