GoCardless has played a key role in rolling out a new industry-driven initiative aimed at advancing open banking technology. Announced recently this month, this effort introduces Recurring Pay by Bank, a solution that promises more efficient, flexible, and affordable ways to handle repeated payments directly from bank accounts.
The UK Payments Initiative (UKPI), supported by investments from banks, building societies, and fintech companies including GoCardless, now operates the scheme.
This marks a key step toward realizing the country’s National Payment Vision, which seeks to boost competition, spark innovation, and strengthen the resilience of the payments system by promoting account-to-account (A2A) transfers.
Traditional card payments continue to rule the retail sector, accounting for roughly 84% of spending by value and imposing around £1.5 billion in annual fees on businesses due to the dominant positions of Visa and Mastercard.
The new recurring open banking option offers the first credible, lower-cost substitute, helping to establish a robust, homegrown payment infrastructure less dependent on foreign networks.
Businesses and consumers stand to gain substantially from the combination of meaningful cost reductions, immediate confirmation of payments, adaptable scheduling, and high-level security comparable to banking standards.
According to GoCardless-commissioned research by Opinium, nearly nine in ten companies that rely on recurring income anticipate notable improvements in cash flow management, with 91% forecasting lower operational expenses. Almost half of businesses plan to adopt the technology early.
On the consumer side, 38% express willingness to try the method, with openness climbing to 60% among Gen Z respondents.
The solution is available for a wide range of uses, including contributions to government entities, utility bills, charitable donations, and financial services.
GoCardless demonstrated its capabilities earlier by completing the UK’s first recurring open banking transaction in March 2025 with energy provider Jellyfish Energy during initial testing.
To address potential hurdles in this emerging market, the platform incorporates several practical innovations.
Intelligent routing ensures seamless coverage by automatically switching to Direct Debit when open banking access is limited, delivering full payer reach from the outset.
A smart “bank guess” tool draws on extensive historical data—covering 80% of UK payers over 15 years—to pre-populate details and streamline the user journey. Additionally, the system boasts exceptional reliability with industry-leading uptime, a crucial element for organizations testing the waters.
Shaun Puckrin, Chief Product Officer at GoCardless, highlighted the broader implications: the initiative delivers genuine competition to a card-dominated market long plagued by high costs.
It positions the UK to control its own financial destiny through modern, API-driven infrastructure capable of supporting real-time processing and future innovations like agentic commerce, where AI systems and automated payments intersect.
Richard Koch, Managing Director of UKPI, praised the collaboration, noting GoCardless’s deep expertise in account-to-account payments strengthens the scheme’s foundation and helps transform open banking into a trusted, everyday option for businesses and individuals.
This launch represents more than a technical upgrade—it signals a shift toward a fairer, faster, and more sovereign payments ecosystem.
As adoption grows, Recurring Pay by Bank could reshape how organizations collect funds and how consumers manage regular outgoings, reducing reliance on expensive legacy methods while enhancing convenience and control. With backing from the industry and relatively positive early signals from merchants and consumers, the potential of recurring payments in the UK looks bank-centric and cost-effective.