Expert in Policy Collaborates with GoCardless to Facilitate Payment Solutions for Pet Insurance Services
Policy Expert, a leading UK personal lines insurer, has announced a partnership with GoCardless to offer pet insurance customers a simpler monthly payment option through Direct Debit. This collaboration marks a significant step towards the expected transformation of recurring payments by 2025, thanks to the adoption of Commercial Variable Recurring Payments (cVRP) under Open Banking.
Pat Phelan, managing director of UK & Ireland and chief customer officer at GoCardless, expressed his excitement about the partnership, stating, "We're thrilled to collaborate with Policy Expert and power the payments for their new insurance line."
The upcoming mandate in 2025 will allow companies like Policy Expert to collect recurring payments via Open Banking, ushering in a new era of flexible, consumer-controlled payment experiences. This change is expected to improve convenience, reduce fraud risk, and lower payment processing costs compared to traditional card-on-file or direct debit methods.
Key benefits for both companies include greater consumer control and flexibility, enhanced security and fraud reduction, lower payment processing costs, and accelerated new payment adoption. Consumers will be able to set payment limits, dates, and cancel or modify payments at any time, providing a more trustworthy and satisfying experience. Open Banking's strong customer authentication and direct bank-to-bank payments will also reduce fraud risk, addressing a key consumer concern, especially for higher-value transactions.
Rick Wilton, head of product (payments) at Policy Expert, stated that the partnership allows for a competitive offering of monthly payments for pet insurance, empowering customers with the flexibility to pay on their terms. The partnership is expected to make customers' lives easier by automating payment collection services, saving time and money on administrative tasks, and improving the efficiency of Policy Expert's payment collection processes.
Pat Phelan anticipates strengthening the partnership between GoCardless and Policy Expert in the future, potentially including Variable Recurring Payments and the capability to send payouts. The collaboration aims to provide Policy Expert customers with a more seamless and diverse payment experience as part of Policy Expert's mission to disrupt the insurance industry through the use of technology.
Policy Expert is a fast-growing company, raising the standards of customer experience in the insurance industry. As a UK insurer, it provides home, motor, and pet insurance to over 1.5 million customers. GoCardless is a bank payment company specializing in Direct Debit payments, offering an easy-to-integrate solution for Policy Expert's new pet insurance line.
Sources: [1] GoCardless. (2021). The future of recurring payments: A guide to Commercial Variable Recurring Payments (cVRP). Retrieved from https://gocardless.com/resources/future-of-recurring-payments/ [2] Open Banking Implementation Entity. (2020). Commercial Variable Recurring Payments (cVRP) – A consultation on the design of the API. Retrieved from https://www.openbanking.org.uk/wp-content/uploads/2020/02/OBIE-cVRP-API-Consultation-Document-v1.0.pdf [3] Juniper Research. (2020). Recurring Payments: Emerging Trends, Market Forecasts & Strategies 2020-2025. Retrieved from https://www.juniperresearch.com/researchstore/banking-financial-services/recurring-payments-emerging-trends-market-forecasts-strategies-2020 [4] Policy Expert. (2021). Press release: Policy Expert partners with GoCardless to offer pet insurance customers a simpler monthly payment option. Retrieved from https://www.policyexpert.co.uk/press-releases/policy-expert-partners-with-gocardless-to-offer-pet-insurance-customers-a-simpler-monthly-payment-option/
- The collaboration between Policy Expert and GoCardless, fueled by Open Banking, signifies a transition towards consumer-controlled and flexible payment experiences in the finance sector, especially for recurring payments like pet insurance.
- Open Banking's direct bank-to-bank technology and strong customer authentication are expected to lower fraud risk and improve security, addressing consumer concerns, particularly for high-value transactions.
- The partnership between Policy Expert and GoCardless aims to provide customers with a diversified, seamless, and efficient payment experience, aligning with Policy Expert's mission to disrupt the insurance industry through technology.
- As part of their strategic partnership, GoCardless and Policy Expert are exploring the potential addition of Variable Recurring Payments and payout capabilities, aiming to further enhance the payment experience for Policy Expert customers.
