Traditional payment methods are proving unsustainable for many UK companies, according to fresh research from bank payments Fintech GoCardless. The findings indicate that outdated systems are dragging down revenue, efficiency, and customer relationships, while a growing number of firms view the forthcoming commercial Variable Recurring Payments (VRPs) as a potentially viable alternative.
The report shared by GoCardless underscores how sectors including utilities, financial services, telecommunications, insurance, government, charities, and rail/travel are set to gain the most.
These industries could cut revenue leakage and strengthen customer loyalty once commercial VRPs become widely available.
The study polled 489 UK decision-makers responsible for recurring revenue payments.
Results show deep frustration with existing options, particularly cards.
Nearly three-quarters (73%) of respondents described ongoing difficulties, and 42% reported spending more than three hours each week handling related problems.
When factoring in fraud prevention and administrative burdens, card payments are currently eating away an average of 3.5% of monthly revenue for merchants.
Despite these challenges, almost half the businesses surveyed (49%) plan to adopt commercial VRPs as early movers.
Among leaders in the initial rollout group, 89% anticipate major improvements in cash flow, and 91% expect meaningful reductions in operating expenses.
These technologies combine the reliability of recurring mandates with the speed and rich data capabilities of open banking, offering a smarter, lower-friction solution than legacy rails.
Consumer attitudes appear equally encouraging.
A parallel survey of 2,000 UK adults found 38% generally receptive to the idea, with openness climbing to 60% among Gen Z respondents.
Interest peaks for essential services: 46% would consider it for energy bills, and 35% for telecom payments.
When asked what would accelerate uptake, business leaders pointed to two priorities.
Forty-one percent want seamless access to open banking payments through their current provider, while another 41% called for broader availability across more banks and consumer accounts.
Commercial VRPs mark one of the most important evolutions in UK payments in years, with a structured, regulator-led rollout already underway.
The Financial Conduct Authority and Payment Systems Regulator are overseeing a phased approach.
The first wave focuses on lower-risk, regulated sectors such as those listed above, with wider expansion into e-commerce, retail, and digital subscriptions planned for later stages.
GoCardless Chief Product Officer Shaun Puckrin emphasised the momentum: the data demonstrates that reliance on cumbersome traditional methods is ending, as both businesses and consumers show clear appetite for more intelligent, bank-driven alternatives.
With over 15 years of experience in bank payments and early involvement in live VRP testing, the company positions its Recurring Pay by Bank solution as a practical way to make adoption straightforward and effective today.
Conducted by independent agency Opinium in December 2025, the research confirms strong dual-sided demand.
Early adopters who select capable partners stand to secure a competitive edge in an increasingly efficient payments landscape. As the industry moves into live testing, commercial VRPs could finally deliver the stability and simplicity recurring revenue businesses have long needed.