Research reveals increased demand for VRPs as the cost of living rises

Thursday 2 June 2022 11:01 CET | News

UK-based GoCardless has revealed a high potential demand for Variable Recurring Payments (VRPs) as UK consumers look for ways to manage their money.

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%). Many would appreciate quick and easy tools: over a quarter (28%) indicate they are ‘too busy’ and often lack the time to think about budgeting or managing their money.

The findings come before the CMA’s ‘sweeping’ deadline for VRPs, with banks like NatWest already gearing up for the industry-wide rollout. The desire to gain increased control over their finances also comes as consumers are being stung by rising rates of inflation.

Against this backdrop, the research reveals that 57% are struggling to save due to the rising cost of living, with more than four in 10 (45%) Brits planning on experimenting with new ways to save or make money over the next 12 months. Younger consumers may require even more support: 30% of Gen Z and Millennials say they find it difficult to budget and manage their money every month, rising to 34% of women in these cohorts. 

Representatives from GoCardless stated that with the cost of living crisis continuing to put the squeeze on personal finances, VRPs couldn’t come soon enough. The research shows demand for easy-to-use technology that automatically helps people clear their debts and build their savings.

Earlier in May 2022, GoCardless announced Nude, the savings app for first-time buyers, as its first VRP customer. It has also been chosen as a payment provider for VRPs by NatWest Group and recently launched VRP pilots with NatWest and Charity Right.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Variable Recurring Payments, research, GoCardless, spend management, Gen Z
Categories: Payments & Commerce
Companies: GoCardless
Countries: United Kingdom
This article is part of category

Payments & Commerce


Discover all the Company news on GoCardless and other articles related to GoCardless in The Paypers News, Reports, and insights on the payments and fintech industry:

Industry Events