GoCardless has backed the launch of UK Payments Initiative, a new industry-led scheme enabling recurring account-to-account payments in the UK.
UK-based GoCardless has announced its backing of the UK Payments Initiative (UKPI), a newly live industry-led scheme operator backed by banks, building societies, and fintechs. The scheme's launch paves the way for Recurring Pay by Bank, GoCardless's open banking-powered solution for recurring, flexible, and automated bank payments. GoCardless completed the first recurring open banking transaction under the industry's live testing phase in March 2026, processed on behalf of Jellyfish Energy.
The scheme is designed to support the UK's National Payment Vision and drive wider adoption of account-to-account (A2A) payments as an alternative to card-based infrastructure.
Market context and the card duopoly
Cards currently account for 84% of UK retail spending by turnover, costing businesses GBP 1.5 billion annually in fees through the Visa and Mastercard networks, according to data cited in the announcement. Recurring open banking payments are positioned as a lower-cost alternative built on domestic rails, with the potential to reduce merchant costs and increase payment flexibility for consumers.
GoCardless research cited in the announcement indicates that 89% of recurring revenue businesses believe the technology would improve cash flow, 91% expect it to reduce operational costs, and 49% intend to be early adopters. Among consumers, 38% said they would be open to trying recurring Pay by Bank, rising to 60% among Gen Z respondents.
The scheme supports payments to public sector bodies, utilities, charities, and financial services providers, among other use cases.
Product design and coverage
GoCardless's Recurring Pay by Bank includes intelligent routing that automatically falls back to Direct Debit where open banking is unavailable, ensuring full payer coverage from launch. A bank identification feature draws on GoCardless's 15 years of transaction data - covering 80% of UK payers - to auto-fill payment details and streamline checkout. The platform also emphasises high uptime as a critical factor for early adopter confidence during the scheme's initial rollout phase.
No figures on the number of UKPI member institutions or the investment amounts contributed by participants have been disclosed.
