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GoCardless research shows legacy payment systems cost UK businesses 3.5% of monthly revenue
LONDON, United Kingdom – April 12, 2026 — GoCardless released research revealing that legacy payment systems cost UK businesses 3.5% of monthly revenue due to card payment failures and inefficiencies. The bank payment company positions commercial Variable Recurring Payments (VRPs), marketed as Recurring Pay by Bank, as the solution to reduce costs and improve cashflow for recurring revenue businesses.
Overview
GoCardless surveyed 489 UK recurring revenue business leaders and 2,000 UK consumers to quantify payment friction. The UK payments infrastructure is undergoing a generational upgrade through open banking-enabled VRPs, with GoCardless positioning its Recurring Pay by Bank product as a market-ready alternative to traditional card networks facing mounting pressure from rising fraud rates and payment failures.
Announcement specifics
GoCardless surveyed 489 UK recurring revenue business leaders and 2,000 UK consumers to quantify payment friction. Seventy-three percent of business leaders face ongoing issues with traditional card payments, including fraud and administrative overhead. Forty-two percent spend over three hours weekly managing these problems.
In Wave 1 of commercial VRP rollout—led by the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) targeting low-risk sectors like utilities and finance—91% of decision-makers expect reduced operational costs and 89% anticipate improved cashflow. Among financial services leaders specifically, 95% foresee cost savings, 92% expect fewer late payments, 88% predict higher customer satisfaction, and 52% plan early adoption.
Consumer research shows 38% openness to VRPs among UK adults, rising to 60% among Gen Z, with 46% interested in using the technology for energy bills.
“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.”
— Shaun Puckrin, Chief Product Officer at GoCardless
Why it matters: The statement signals GoCardless’ strategic positioning after 15 years in the payments space, framing commercial VRPs as the definitive replacement for card-based recurring payments.
Industry context
The UK payments infrastructure is undergoing a generational upgrade through open banking-enabled VRPs. Traditional card networks face mounting pressure from rising fraud rates and payment failures, accelerating business migration toward bank-led alternatives. GoCardless’ Recurring Pay by Bank product is already live-tested in market, lowering adoption risk for early-stage commercial VRP participants.
While the research focuses exclusively on UK markets, the VRP model demonstrates scalable architecture for recurring payment transformation that could be adapted by open banking initiatives in MENA financial hubs including Riyadh and Dubai, though no verified GoCardless transaction volumes or regional expansion plans for those markets currently exist.
Conclusion
GoCardless emphasized that early VRP adopters partnering with established providers will secure operational advantages as Wave 1 testing advances toward broader commercial rollout, fundamentally transforming recurring revenue collection infrastructure.
Sources: The Fintech Times, GoCardless, Open Banking Expo