Legacy payments are failing businesses: 9 in 10 see commercial Variable Recurring Payments as the way forward

GoCardless research finds 49% of businesses intend to be early adopters as card payment issues cost merchants an average of 3.5% of monthly revenue

LONDON, 1 April 2026 -- A new study from bank payment company GoCardless has revealed that UK businesses are being held back by outdated systems, with legacy methods becoming increasingly untenable.

The report, Revolutionising Recurring Revenue, found that with the upcoming introduction of commercial Variable Recurring Payment (VRPs), industries such as utilities, financial services, and telcos are poised to significantly reduce lost revenue and improve customer retention.

The research, which surveyed 489 UK recurring revenue business leaders, shows widespread dissatisfaction with existing rails. Nearly three-quarters (73%) report ongoing pain points with card payments. 42% of respondents spend more than three hours per week managing related issues and combined with fraud and admin overhead, this payment method costs businesses an average of 3.5% of their monthly revenue.

A high-impact solution for regulated sectors

Against this backdrop, commercial VRPs are viewed as a strategic unlock. Among decision-makers in the first wave* of the rollout, 89% believe the technology would significantly improve cash flow, while 91% expect it to reduce operational costs.

Consumer readiness further strengthens the commercial case. Research among 2,000 UK adults shows meaningful demand, with 38% open to adopting the technology, rising to 60% among Gen Z. Interest is highest in essential services, with 46% willing to use commercial VRPs for energy bills and 35% for telecoms.

Business leaders prioritise operational simplicity and stability 

The research findings indicate strong demand for commercial VRPs. At this juncture, execution is what matters. When asked what would encourage their adoption or increase their use of open banking payments including commercial VRPs, 41% of businesses cited the ability to access open banking payments through their existing payment provider. The same proportion (41%) pointed to greater coverage, or more banks offering open banking payments to consumers.

Commercial VRPs represent one of the most significant upgrades to the UK’s payment infrastructure in a generation. The report emphasises that early movers will gain the advantage. In addition, choosing the right partner is essential to reducing execution risk and ensuring a smooth transition.  

Shaun Puckrin, Chief Product Officer at GoCardless, said: “The numbers don’t lie: the era of settling for high-friction, legacy payment methods is over. We’re seeing openness and demand from both sides of the checkout for a more intelligent, bank-led alternative. As a company that has specialised in bank payments for 15 years, it’s incredibly exciting to see the industry catching up and working together in the live testing phase to prove out commercial VRPs and we’re confident that our solution, Recurring Pay by Bank, makes adoption viable and highly effective today.”

To read the full report, visit: https://gocardless.com/g/the-strategic-opportunity-of-commercial-vrps/

Notes to Eds. 

*The introduction of commercial VRPs is being governed by a deliberate, phased rollout led by the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), in collaboration with the industry. 

• Wave 1 (Current Focus): Regulated, ‘low-risk’ sectors including Utilities (Energy/Telecoms), Financial Services, Insurance, Central and Local Government, Charities, and Rail/Travel.

• Wave 2 (Future Phase): Expansion into the wider e-commerce, retail, and digital subscription markets.

About the Research 

The research was conducted by Opinium (Insights with Impact), an independent insights agency. The business survey was carried out online between 2nd and 15th December 2025 among 500 senior decision makers responsible for accepting payments or setting payment strategies in UK businesses with 10 or more employees. Out of the 500 respondents, 489 accept recurring payments.

A separate consumer survey was conducted online between 2nd and 5th December 2025. It surveyed a sample of 2,000 UK adults, nationally representative by age, gender, region, economic activity, and social grade.

GoCardless: account-to-account pioneers

GoCardless has specialised in bank payments for more than 15 years, connecting disparate Direct Debit systems into a global network and adding tools that leverage machine learning and the millions of transactions it processes each year to improve fraud prevention and payment success rates.  

GoCardless has been at the forefront of open banking since processing the UK's first live Variable Recurring Payment (VRP) transaction in a sandbox environment in 2019. In 2022, it became one of the first payment providers to facilitate a commercial VRP transaction and joined the approved list of open banking suppliers for central and local government in 2024. 

For more information, please contact: 

press@gocardless.com  

About GoCardless 

GoCardless is a global bank payment company. Over 100,000 businesses, from start-ups to household names, use GoCardless to collect and send payments through direct debit, real-time payments and open banking. GoCardless processes US$130bn+ of payments annually, across 30+ countries; helping customers collect and send both recurring and one-off payments, without the chasing, stress or expensive fees. We use AI-powered solutions to improve payment success and reduce fraud. And, with open banking connectivity to over 2,500 banks, we help our customers make faster, more informed decisions. 

We are headquartered in the UK, with additional offices in Australia, France, Ireland, Latvia and the United States. For more information, please visit www.gocardless.com and follow us on LinkedIn @GoCardless.