Commercial VRPs may not entirely replace commercial cards in UK B2B payments.

From Yahoo Finance: 2025-06-19 17:17:00

Adflex, a leader in B2B fintech, focuses on digital payments innovation. CEO Pat Bermingham sees B2B payments catching up to B2C. Variable Recurring Payments (VRPs) offer businesses better payment forecasting. UK banks implemented VRPs for ‘sweeping’, but more use cases are needed for widespread adoption, especially in B2B payments.

Commercial VRPs (cVRPs) offer automation for C2B and B2B payments. FCA oversight of cVRP rollouts aims to enhance payment efficiency. VRPs and cVRPs suit modern payment models, offering flexibility and control. Open Banking Limited’s Commercial Model rollout and MLA development signal a significant milestone in VRP advancement.

cVRPs streamline payments, reducing administrative burdens and improving cash flow. Enhanced visibility of payments fosters operational confidence. cVRPs bypass card schemes, potentially saving businesses money. Strong Customer Authentication ensures payment security and reduces fraud risks, aligning with PSD2 requirements.

cVRPs benefit businesses by automating recurring payments, but face competition from existing payment methods like commercial cards. While cVRPs have advantages for predictable supplier payments, they may not replace commercial cards due to complexity and buyer preferences. Better integration and oversight are necessary for full cVRP adoption.

Will commercial VRPs transform B2B payments in the UK? While cVRPs offer automation and security benefits, they may not replace commercial cards entirely. Both payment methods have their advantages, with cVRPs complementing commercial cards for recurring payments and promoting efficient transactions for businesses.

Read more: Will commercial VRPs transform B2B payments in the UK?