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UK firms back bank-led recurring payments over cards

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GoCardless has published research indicating that most UK recurring-revenue businesses view commercial Variable Recurring Payments as their preferred alternative to legacy payment methods. The findings indicate strong interest among businesses in sectors expected to be included in the initial rollout.

The study surveyed 489 UK business leaders at companies that accept recurring payments and found broad frustration with existing systems, especially cards. Nearly three-quarters, or 73%, reported ongoing pain points with card payments, while 42% said they spend more than three hours each week dealing with related issues.

According to the research, card-related administration, fraud and other overheads cost merchants an average of 3.5% of monthly revenue. GoCardless presents commercial VRPs that use open banking infrastructure for recurring payments as a possible solution for industries such as utilities, financial services, and telecommunications.

Card friction

The figures highlight the operational burden on businesses that rely on recurring billing. Time spent resolving failed payments, handling card expiry and managing fraud checks can affect revenue collection and customer retention, particularly in sectors where regular billing is central to the business model.

Among decision-makers in the first phase of the commercial VRP rollout, 89% said the technology would significantly improve cash flow. Another 91% expected it to reduce operational costs.

The initial phase is focused on regulated and lower-risk sectors, including utilities, financial services, insurance, government, charities, and rail and travel. A later phase is expected to extend to broader eCommerce, retail and digital subscription markets.

The survey also found that 49% intend to be early adopters of commercial VRPs. This suggests many companies are willing to move quickly if the product is available through familiar payment channels and supported by banks.

Adoption conditions

The findings also point to practical concerns around execution. When asked what would encourage adoption or greater use of open banking payments, 41% of businesses cited access through their existing payment provider, while the same share pointed to wider consumer bank coverage.

This suggests demand may depend less on awareness than on delivery. Businesses appear to want a route into commercial VRPs that does not require major changes to their payment operations, along with confidence that enough banks will support the payment method.

A separate survey of 2,000 UK adults suggested there is also consumer interest, particularly among younger users. Overall, 38% of respondents said they were open to using the technology, rising to 60% among Gen Z.

Interest was strongest for essential household services. Some 46% said they would be willing to use commercial VRPs for energy bills, while 35% said the same for telecoms payments.

Industry shift

The research comes as regulators and industry participants work through a phased introduction of commercial VRPs in the UK. Supporters see the model as a way for consumers to authorise recurring bank-to-bank payments with more flexibility than traditional direct debit arrangements, although the rollout remains limited to selected sectors at this stage.

For providers of recurring services, the appeal lies in reducing failed collections and reliance on card networks. For consumers, the pitch is direct account-based payments for regular bills and subscriptions, though broad uptake will depend on trust, bank participation and ease of use.

Shaun Puckrin outlined GoCardless’s view of the market in a statement accompanying the findings.

“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,” said Shaun Puckrin, Chief Product Officer, GoCardless.



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Network Rail will not reopen Botley Road early despite completion

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Gas network company SGN confirmed it had repaired three minor gas leaks and left the site on Monday, August 3, six days earlier than expected.

The leaks were discovered during excavation works last month and contributed to the pushing back of the road’s reopening date, yet again, to September 20.

The completion of the gas mains replacement marked a significant step forward in the wider Oxford Station improvement project, which was originally budgeted at £161 million but is now expected to cost at least £237 million.

The development prompted hopes that Botley Road, closed beneath the rail bridge since April 2023, could reopen earlier than planned.

However, Network Rail has moved to manage expectations, saying the project remains on course to meet its existing target date rather than finish ahead of schedule.

A Network Rail spokesperson said: “We’re pleased that SGN has completed its gas mains replacement work.

“While this is an important milestone, it doesn’t necessarily mean the overall project will finish early as some remaining work is dependent on access to the railway, which we have had to rearrange to enable the replacement of the gas main.

“Our focus remains on meeting our planned deadline of 20 September for reopening Botley Road to traffic.”

While the completion of the gas works removes one of the most recent obstacles facing the scheme, Network Rail says further work under the bridge and around the station is still needed before the route can reopen to traffic.





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40-year-old Oxfordshire gymnastics club at risk of closure due to heat

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The club is currently struggling in the summer heat, and has launched a new fundraiser to keep its gymnasts safe.

The club, which is based at Grove House Barn near Warkworth in Banbury, launched the fundraiser so it could buy and install four air conditioning units to keep its space cool.

Currently, the club hopes to raise £7,000 through the appeal so it can buy four 10kW air conditioning units and cover all the installation costs.

So far, the club has raised £380.

Karl Wade, director of Wade Gymnastics, said the club has become “increasingly warm” during the summer months due to the rising temperatures.

READ MORE: Thames Water leakage targets are ‘not realistic’ says boss after pay rise

Wade Gymnastics at Grove House Barn in BanburyWade Gymnastics at Grove House Barn in Banbury (Image: Google Maps)

“Despite our best efforts to keep doorways and shutters open, it becomes very uncomfortable for gymnasts to play and train,” Mr Wade said.

He added: “The safety of our gymnasts and coaches is always our utmost priority.

“Unfortunately, the risk of having to close the business during these hot spells is increasing and we need to have more effective ways of keeping everyone cool.

“An air conditioning system would allow the business to stay open during those extreme hot conditions and continue to provide classes for everyone who attends.”

The gym currently delivers classes seven days a week for around 900 people, which range from toddlers to athletes competing at national level.

The gym club was founded more than four decades ago by Ruth Wade and, for the past 20 years it has been based at its current facility.





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Solihull Council appoints ICS.AI for AI discovery phase

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SOFIAH NICHOLE SALIVIO

News Editor

Solihull Council has appointed ICS.AI to deliver the first phase of an AI Transformation Discovery programme to examine how artificial intelligence could be used across several resident-facing services.

The 24-week programme will review opportunities in Adult Social Care, Children’s Services, Economy & Infrastructure, and Public Health. It is intended to help the council decide where AI could be used and where future spending should be directed.

In this first phase, ICS.AI will assess the council’s readiness for AI and identify use cases across the four service areas. The programme is expected to produce a prioritised shortlist of about 200 use cases, including 50 validated from a finance perspective, alongside a longer-term AI Transformation Roadmap.

The work is intended to create an evidence base before any wider implementation decisions are taken. Ethics, privacy, and safeguarding will be considered throughout the assessment process.

Discovery phase

ICS.AI will use its AI Target Operating Model framework to review Solihull’s current position across five dimensions before ranking opportunities. The outputs will be based on council-owned baseline data and reviewed by public sector specialists.

The approach reflects a broader pattern among local authorities exploring AI in service delivery while facing pressure to justify spending and manage risks around data use and public accountability. Councils have also been seeking clearer business cases before committing to larger technology programmes.

Solihull said the discovery exercise would support a measured approach to service modernisation. The authority wants to identify where AI could improve services for residents while also demonstrating value for money.

“We are committed to taking a well-considered and planned approach to modernising the services we provide. By building a strong evidence base for future decisions, this programme will help us understand where the greatest AI opportunities exist. We will then be able to prioritise those improvements that will deliver the greatest benefit for residents, while ensuring full value for the council,” said Councillor Dave Pinwell, Cabinet Portfolio Holder for Resources, Solihull Council.

Public sector focus

ICS.AI said the Solihull engagement builds on work it has carried out with more than 20 public sector organisations using its AI transformation and discovery assessments. Those organisations include Derby City Council.

The company focuses on AI projects for the public sector, where interest has increased as authorities look for ways to manage demand pressures in social care, public health, and other frontline services. At the same time, councils are under scrutiny to show that new technology investments are proportionate and supported by practical evidence.

Dwayne Johnson, Chief Local Government Officer at ICS.AI, said local authorities need stronger justification before committing funds. “Local authorities need confidence that every investment is backed by robust evidence and long-term value for residents. Solihull Council is taking the right approach by starting with a structured discovery programme that builds a clear understanding of priorities before decisions are made. By developing finance-validated business cases and a practical roadmap, the council can be more proactive in the decisions it makes,” he said.

The programme’s initial outputs are expected to give Solihull a ranked view of where AI could be applied across services, the level of organisational readiness, and which projects may warrant further consideration. This first phase is focused on identifying options rather than moving directly into deployment.

For local government leaders, that distinction is becoming increasingly important as councils test AI in areas that affect vulnerable residents and essential public services. In Solihull’s case, the work spans some of the authority’s most visible functions, including care services, children’s provision, public health activity, and parts of local infrastructure planning.

The council aims to use the findings to inform later investment decisions through finance-validated business cases and a practical roadmap for future priorities.



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