Business & Technology
GoCardless, Jellyfish Energy test recurring Pay by Bank
GoCardless and Jellyfish Energy have completed the first recurring Pay by Bank transaction in a live test with banks.
The transaction moves beyond the sweeping use of open banking payments introduced in 2022 by applying the model to commercial payments. It was processed on behalf of Jellyfish Energy, a UK business energy supplier that plans to offer the method to its business customers.
Recurring Pay by Bank lets customers approve ongoing bank-to-bank payments through open banking rather than card networks. In the UK, supporters say it could lower merchants’ transaction costs, speed up settlement and reduce failed payments, while letting customers manage or cancel authorisations in their banking app.
Jellyfish Energy plans to use the method to support flexible payment options linked to its rewards-based platform. The supplier, which serves small and medium-sized businesses, has built its model around rewarding reliable payment behaviour and giving customers more visibility over energy costs.
GoCardless has worked in account-to-account payments for more than a decade and has expanded into open banking in recent years. More than 37,000 organisations have used its open banking payment services alongside its broader direct debit and bank payment offering.
It has also been involved in earlier stages of the UK’s open banking payment rollout. In 2019, it processed what it described as the UK’s first live Variable Recurring Payment transaction in a sandbox environment, and it has since joined the list of approved open banking suppliers for central and local government.
Commercial shift
The latest test is notable because recurring Pay by Bank has largely been discussed in the context of sweeping, where customers move money between accounts they control. Extending that framework to merchant payments is seen by advocates as a necessary step if open banking is to become a more direct rival to established methods for regular billing.
GoCardless said its system includes a routing process that moves payers to Direct Debit where open banking is unavailable, aiming to widen coverage. It also highlighted a feature that uses historic payer data to help pre-fill payment details, and said the platform has recorded 99.5% uptime.
Those operational details matter in sectors such as energy, where regular billing, payment certainty and customer retention are closely monitored. Suppliers serving smaller businesses are particularly exposed to cash flow pressure and late-payment risk, making payment method choice more significant than it may appear at checkout.
“We’re thrilled to process the first live recurring Pay by Bank transaction with Jellyfish Energy, a major milestone as the industry prepares for the launch of this next-gen payment method. Recurring Pay by Bank offers a unique blend of speed, security and ease, helping forward-looking businesses like Jellyfish Energy unlock new revenue models, greater efficiency and best-in-class customer relationships,” Pat Phelan, Chief Revenue Officer at GoCardless, said.
“By leaning on our 15 years of experience in account-to-account payments, we can bring this technology to market with the proven reliability that businesses need. This will help them adapt with total confidence, knowing their payment operations won’t miss a beat,” Phelan added.
Energy use case
For Jellyfish Energy, the appeal is more predictable collections combined with a payment option that sits within customers’ banking apps. The company operates from Newcastle and also has offices in Edinburgh and Manchester, serving thousands of SME customers and working with more than 650 partners across the UK.
Its platform gives customers and partners visibility over payments, charges and ratings. That focus on transparency has become a point of distinction in a market where business customers often complain about complex billing and limited flexibility in payment terms.
“At Jellyfish, we’ve built our entire business model around rewarding reliable payment behaviour and giving customers real transparency and control over their energy costs. Recurring Pay by Bank is the next natural stage of that philosophy, giving our business customers flexibility and payment reliability that ultimately enables us to offer better rates,” said Aidon Hudson, Chief Executive Officer of Jellyfish Energy.
“Our industry is often seen as traditional and inflexible, which is why we’re excited to be at the forefront of bringing open banking payment solutions to the business energy sector, where they can deliver much-needed value to SMEs managing cash flow,” Hudson added.
The broader push behind Pay by Bank comes as the UK payments sector looks for alternatives to cards and, in some use cases, longstanding direct debit systems. GoCardless processes more than USD $130 billion in payments annually across more than 30 countries, giving it a sizeable base from which to test whether recurring open banking payments can move from industry pilots into routine commercial billing.
Business & Technology
Oxfordshire housing association celebrates 25 years
Cottsway Housing Association, the largest social housing provider in West Oxfordshire, began in 2001 as West Oxfordshire Housing.
It was formed through a Large-Scale Voluntary Transfer (LSVT) of 3,643 homes from West Oxfordshire District Council, following a tenant consultation that resulted in a vote in favour of the transfer.
Since then, Cottsway has grown by around 65 per cent and will soon be taking handover of its 6,000th property, with homes in Gloucestershire, Wiltshire and Worcestershire.
Andrew Hall, who will stand down as Board Chair at the end of this month, said: “Reaching our 25th anniversary is a proud moment for everyone connected to Cottsway.
“It’s an opportunity to reflect on what we’ve achieved together and, just as importantly, to look ahead.
“I will leave Cottsway knowing that it is in a strong, robust position and on track to deliver targets set out in its Corporate Plan with three key focus areas – most importantly ‘People’ and ‘Homes’, but also ‘Business strength’ which enables Cottsway to continue investing in current homes so that they are to the high standard customers expect and deserve, but also in a good position to continue providing more homes in the future.
“I would like to thank everyone who has played a role in Cottsway over the past two and a half decades and especially to our customers, for telling us when we get things right or when we could be doing things better so that we can take action to improve, because their views are what matter the most.”
To mark the anniversary, Cottsway has launched several community-focused initiatives.
These include an extra £25,000 for its Community Fund to support local projects that help residents gain new skills, improve wellbeing, and build stronger neighbourhoods.
The association will also donate 25 trees to a community to promote biodiversity.
Cottsway serves more than 13,000 customers, with more than three-quarters of its homes offered at social rent, typically half the cost of private market rent.
Where social rent is not feasible, homes are provided at affordable rent – about 20 per cent below market rates – or through shared ownership schemes.
The organisation invests more than £10 million annually in maintaining and upgrading existing homes, prioritising health and safety.
It has also secured government funding to improve energy efficiency in older properties and help residents manage energy costs.
Cottsway holds top ratings for viability and governance from the Regulator of Social Housing and reports a customer satisfaction rate of 85 per cent.
It recently published a corporate plan for 2023-2028, which sets out targets to deliver 833 new homes and invest £63 million in improving existing properties, including energy upgrades.
The plan commits more than £150 million toward meeting these goals over the next three years.
Business & Technology
Why have there been so few Easter egg adverts this year?
It comes down to new regulations from the government that came into force at the beginning of the year.
This prohibits products high in fat, sugar and salt from appearing in TV ads before 9pm.
The UK advertising industry voluntarily chose to start adhering to the new rules from October, which means that items such as chocolate eggs and hot cross buns can’t be shown before 9pm.
Why are Easter egg adverts now prohibited from appearing before 9pm?
This legislation is in place to tackle rising childhood obesity
The current regulations are based on a nutrient profiling model that was created in the early noughties to assess whether a product is a “junk” food.
In 2018, an updated model was developed, but it was not introduced.
However, on Wednesday (March 25), the government has said that it is likely to adopt the newer model, which would see a far wider range of products deemed to be too high in fat, salt and sugar banned from next year.
This could include Kellogg’s Bran Flakes, Ambrosia rice pudding pots, the Mr Kipling Delicious and Light range and Doritos.
Has the new legislation impacted advertising revenues?
Research conducted for The Guardian found that TV advertising spending by confectionery and snacks brands almost halved year-on-year between October and February.
An analysis covering the vast majority of firms that advertise all the products that fall under the government’s “less healthy foods” regulations shows that overall TV ad spend is down at least 15% year-on-year.
Industry bodies and broadcasters have argued that the ban is more political PR than an effective policy.
A spokesperson for ISBA, the Incorporated Society of British Advertisers, said: “The advertising and marketing of products is one consideration for helping tackle childhood obesity.
“But successive governments have treated bans or restrictions as a silver bullet … legislating on the basis of headlines, not evidence.”
However, health campaigners have said it doesn’t go far enough as brand advertising is allowed as long as adverts do not show an “identifiable” product that breaks the junk food rules.
Fran Bernhardt, of the campaign group Sustain, said: “The policy is riddled with loopholes which allow industry to continue to advertise branding for unhealthy products like Cadbury’s Dairy Milk Caramel or McDonald’s McFlurries.
“Aside from a few tweaks to adverts, this Easter will be much like Easters before.
“Industry will continue more or less as usual.”
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Campaigners also argue that big food companies are compensating for the ban, which also extends to paid online advertising at any time of the day, by upping marketing budgets on other media.
Media agency sources say that outdoor media, such as billboards and poster sites, and radio have benefited from the TV and online ban.
Billboards are only subject to junk food ad bans if they are located within 100 metres of premises such as schools or leisure centres.
Have you seen fewer adverts for Easter eggs this year? Let us know in the comments.
Business & Technology
UK retailer shuts Oxfordshire branch amid administration
The Original Factory Shop which sells discounted homewares, furniture, electrical goods and toys, shut its store in Carterton yesterday (Saturday, March 28).
On the business’ Facebook page, last-minute discounts were being offered with clothing down to £2 an item.
READ MORE: Store closure fears as UK discount brand in administration
On Thursday, March 26, a spokesperson for the store said: “Everything in store is now up to 85 per cent off as we prepare to close our doors this weekend.
“This is your last chance to grab a bargain – once it’s gone, it’s gone.”
The Original Factory Shop in Carterton (Image: Google Maps)
Following that announcement, prices were subsequently lowered and lowered.
Other branches around the UK also shut yesterday including in Cromer, Gorleston and Bungay in Norfolk and Suffolk with major sales also being implemented at other locations.
This comes after the business fell into administration in January, with further closures also expected imminently in Snettisham, according to The Sun, and around the country.
READ MORE: Geri Halliwell and Christian Horner score planning victory over neighbours
Administrators said The Original Factory Shop’s troubles have been driven by challenging trading conditions, linked to high-cost inflation, fragile consumer confidence and rising labour costs caused by government policies.
Problems were then exacerbated by issues linked to its third-party warehouse and logistics operator, weakening sales further.
It only has one store in Oxfordshire, its Carterton shop, although Claire’s – which is also owned by investment firm Modella Capital and is in administration – has one in the Oxford Westgate shopping centre.
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