Variable Recurring Payments (VRP): The Future of Smarter Payments for Kiwi Businesses
18 May 2025
In a world where customers demand more control, flexibility, and security, traditional direct debits are starting to feel… outdated.
As Open Banking reshapes New Zealand's financial landscape, Variable Recurring Payments (VRPs) are emerging as a smarter, safer alternative to direct debits. For SaaS companies, utilities, insurance providers, and subscription businesses, VRPs offer a new way to build trust, reduce churn, and deliver better customer experiences all while keeping security and transparency at the core.
At Qippay, we're proud to be helping Kiwi businesses lead this exciting change.
Why Variable Recurring Payments Matter Now
Today's customers expect more flexibility. They want to manage their finances digitally, easily, and securely and they want payment solutions that respect their time and trust.
The old direct debit system, while useful, has clear drawbacks:
Complex, paper-based setup processes
Fixed amounts and rigid schedules
Limited visibility and control for customers
Meanwhile, the cost-of-living crisis is sharpening focus on value and trust. Businesses that empower customers with flexibility, transparency, and security are building deeper loyalty and stronger brands.
Example: In Australia, Zepto has introduced innovative, real-time, bank-direct payment solutions using Open Banking infrastructure to give businesses greater control over recurring and one-off payments. Their success in utility and subscription sectors demonstrates the transformative potential of VRP for both consumers and providers.
What Makes VRP Different?
Here's how VRP redefines recurring payments for modern businesses:
Feature | Direct Debit | VRP (Variable Recurring Payments) |
Customer control | Low (hard to manage) | High (manage permissions in real time) |
Payment flexibility | Fixed amounts/dates | Dynamic amounts/frequencies |
Setup process | Paper/complex | Digital, fast, consent-driven |
Speed of payment | Slow (days) | Faster, often same day |
Transparency & security | Moderate | High (bank-grade APIs, real-time consent) |
VRP empowers customers to set consented boundaries (e.g., maximum payment amounts, frequency) while allowing businesses to initiate payments within those limits. It's a win-win: customers feel in control, and businesses enjoy lower churn and higher trust.
Real Benefits of VRP for Kiwi Businesses
More Trust, Less Churn: Customers can adjust or revoke permissions at any time, reducing the fear of "lock-in" and building stronger long-term relationships.
Smarter Billing Models: Ideal for usage-based services where charges vary month-to-month (perfect for SaaS, utilities, and insurance).
Reduced Payment Failures: Real-time verification of accounts and funds availability means fewer failed transactions and fewer administrative headaches.
Lower Costs: No hidden fees, no legacy system inefficiencies. More value flows directly back to your bottom line.
Easier Switching: Switch providers easily without needing customers to re-authorise payment details manually removing a major barrier to growth.
Who Should Be Excited About VRP?
Business Type | VRP Opportunity |
SaaS & Subscription Apps | Smarter, flexible subscription billing |
Utilities Providers | Usage-based billing (water, power, gas) |
Insurance Companies | Dynamic premium payments |
B2B Services | Flexible invoice payments |
Automatically adjust payments based on actual usage, providing fairness, accuracy, and a superior customer experience.
Why Qippay is Leading the Way
At Qippay, we’re committed to providing simple, secure, and affordable Open Banking solutions that help Kiwi businesses thrive.
We're building VRP capabilities that:
Empower customers with real-time consent and control
Streamline payments for businesses and customers
Meet the highest standards of ISO-compliant security
Support future-ready financial services built by Kiwis, for Kiwis
Our approach combines local expertise, world-class technology, and a passion for helping businesses unlock smarter, simpler financial experiences.
Open Banking is creating opportunities. VRP is one of the most powerful and Qippay is ready to help you seize it.
Final Thought
As Open Banking continues to evolve in New Zealand, VRP offers a smarter, safer, and more flexible way forward for businesses that want to deliver real value.
At Qippay, we're not waiting for change we're building it. We're here to help Kiwi businesses like yours leave legacy payments behind and embrace the future with confidence.
Ready to rethink recurring payments?
Let’s talk about how Qippay can future-proof your payment experience and unlock new value for your customers and your business.
To learn more or schedule a demo, please Get in Touch