Involuntary Churn Calculator (VRP)

Involuntary churn (failed rebills due to expired, lost, or re-issued cards) kills subscription LTV. Variable Recurring Payments (VRP) link directly to the underlying bank account, which does not expire.

The VRP Architecture

Under the UK Open Banking standard, VRP allows merchants to collect recurring payments natively. Users authenticate once via their banking app, defining parameters (max amount, frequency). The authorization persists until explicitly revoked.

Common Mistakes

Merchants heavily invest in "dunning" software (automated retries, email campaigns) to recover failed card payments. This treats the symptom. Transitioning the billing rail to an infrastructure that doesn't expire treats the root cause.