Many recurring revenue businesses are still held back by legacy payment systems that are inefficient, expensive and prone to failure.
With commercial Variable Recurring Payments (VRPs) on the horizon, this status quo is finally optional. We surveyed 489 business leaders and 2,000 consumers.
Recurring payments need an urgent rethink
We asked recurring revenue business leaders about their current payment headaches. Many cited issues with cards.
Are commercial VRPs the strategic unlock?
By combining the automation of a recurring mandate (like Direct Debit) with the speed and data-rich nature of open banking, commercial VRPs offer a more intelligent alternative to traditional payment rails.
Sweeping vs commercial
Sweeping: The automatic transfer of money between two accounts belonging to the same person - often called ‘me-to-me’ payments.
Commercial: Commercial VRPs will allow the payments to be used in a commercial setting, i.e., payments going from a customer account to an account owned by a business.
Businesses are highly motivated to switch to commercial VRPs
96% would consider a new payment method if it decreased customer churn
96% would adopt a solution that reduced their DSO
96% believe Recurring Pay by Bank would help them save money
89% believe Recurring Pay by Bank would improve their cash flow
Business leaders and consumers are ready. Execution is what matters.
Technical readiness is only half the battle. Success in rolling out commercial VRPs depends on operational excellence and choosing a partner that can navigate a shifting landscape.
38% of consumers are open to adopting commercial VRPs, rising to 60% for Gen Z
What early business adopters are prioritising
Built-in solution
41% of recurring revenue business leaders would like to access open banking payments through their current provider, so they don’t have to switch
Bank coverage
41% say greater coverage, i.e. more banks that offer open banking payments to consumers
Seamless integrations
39% say an integration with software they already use, such as billing or accounting platforms
Seize the opportunity
The move to commercial VRPs represents the single biggest upgrade to the UK's payment infrastructure in a generation.
Businesses that treat these capabilities – built into our Recurring Pay by Bank solution – as a strategic priority today will not only reduce their operational costs but will redefine their relationship with their customers, now and in the future.
Get the first-mover advantage
Get the blueprint for rolling out commercial VRPs based on real business and consumer insights – plus a checklist for choosing a partner that can deliver.
