GoCardless: VRPs ‘couldn’t come soon enough’ amid cost-of-living crisis

The rising cost of living is driving interest in and demand for variable recurring payments (VRPs), as UK consumers seek better ways to manage their money, according to new research.

The study, conducted by direct bank payments provider GoCardless among 3,796 UK adults, found that 57% admitted they are struggling to save due to the increase in the cost of living.

Meanwhile, 45% of respondents plan to find new ways to save or make money over the next 12 months.

GoCardless revealed that half of consumers say they would use new technology that automatically moves their money from one account to another with a higher interest rate (53%) and to pay their debts (50%).

The research suggested consumers face other calls on their time to consider how they budget and manage their money, with 28% of those surveyed indicating they are “too busy” to do so.

Duncan Barrigan, chief product officer and chief growth officer at GoCardless, said VRPs “couldn’t come soon enough” amid the cost-of-living crsis.

“The research shows clear demand for easy-to-use technology that automatically helps people clear their debts and build their savings. This will be a lot easier after VRPs are introduced,” he added.

“We hope everyone in the financial ecosystem recognises the consumer need for this new technology, and continues to work towards a fast rollout of VRPs.”

Last month, GoCardless was selected by UK banking group NatWest as a payment provider for VRPs.

In April, GoCardless launched an Open Banking feature, Instant Bank Pay, that gives merchants an alternative way to collect instant payments from new and existing customers through a single platform.