Debt detection app SuperFi to ‘harness power’ of VRPs via TrueLayer

European Open Banking platform TrueLayer has begun working with debt detection and prevention app SuperFi to provide variable recurring payments (VRPs) to help users of the app make automatic repayments and avoid overdraft fees.

SuperFi’s platform connects to users’ bank accounts and credit cards to track borrowings and overdrafts in a single interface, and then to set up “manageable” repayment plans.

It comes hot on the heels of TrueLayer’s collaboration with Incredible, a UK credit management app, to provide VRPs to the app’s customers.

At the time of the announcement in February this year, Nick Tucker, head of financial services at TrueLayer, called VRPs “a step change in debt management”.

VRPs will enable SuperFi’s users to repay borrowings more flexibly and in a more “intuitive” way, according to TrueLayer.

Through the collaboration, customers will be able to use TrueLayer’s Open Banking-enabled VRPs to “sweep” money between bank accounts, thereby avoiding paying penalties such as overdraft fees.

It also means they can automatically ‘round up’ purchases to the nearest pound, using any spare change to pay down credit card debt.

Tom Barltrop, chief executive officer and co-founder of SuperFi, said the need for early detection and prevention of problem debt has “never been more urgent”, given that households are struggling to repay their bills and credit commitments.

TrueLayer’s Matt Parish

“We are excited to harness the power of Variable Recurring Payments (VRPs) to enable our users to repay their debts faster and avoid unnecessary fees,” he said.

According to the Bank of England, consumers took out £1.5 billion in consumer credit borrowing in November 2022, and recorded £0.5 billion of new borrowing in January.

Matt Parish, group product manager at TrueLayer, added: “By eliminating the need to authorise every transaction, Variable Recurring Payments (VRPs) enable people to repay their loans in a way that’s both worry-free and frictionless.

“We’re excited to work with SuperFi to provide a more reliable approach to debt support.”

TrueLayer became the first Open Banking provider to deliver different recurring payments types through a single API, back in April last year.