Acquired.com, the next generation payments business powering recurring commerce, today publishes research on payment behaviour trends in the UK’s consumer lending landscape to mark the launch of its proprietary Sweeping Variable Recurring Payment (VRP) solution.

Research conducted by Acquired.com surveyed borrowers who had taken out a loan and were making repayments within the past 12 months. The research revealed that borrower’s payment behaviours and expectations have outpaced the UK lending industry’s traditional repayment models, highlighting the need for modernisation. Key insights include:

Missed payments can be about liquidity, not hardship – 61% of sub-prime borrowers, 64% of near-prime borrowers and 68% of prime borrowers said they have funds available elsewhere when a loan payment declines (Figure 1). In many cases these funds can be used for repayments, however, many lenders continue to rely on rigid repayment systems that don’t accommodate today’s multi-account environment.

Lenders offering multi-payment repayment strategies are realising significant benefits. Zopa Bank has increased its recovery rate on failed payments by 10% through integrating Acquired.com’s Payment Links capability into its recovery strategy. Zopa has recovered nearly £1 million in collections through this method alone.

Borrowers juggle multiple lenders – 75% of near-prime borrowers and 70% of sub-prime borrowers use two or more lenders concurrently (Figure 2), indicating that credit is increasingly treated as a flexible tool for managing day-to-day financial needs. However, lenders continue to rely on long-term relationships with borrowers to achieve returns.

Stated preferences don’t always reflect repayment behaviour – 63% of prime respondents prefer Direct Debit, compared to 41% of sub-prime respondents (Figure 3), and older demographics have a stronger preference for Direct Debit. However, failed Direct Debit payments are not confirmed until two days after the charge date, slowing intervention time. Lenders need to implement intelligent payment options, like Pay by Bank, to increase visibility on delayed payments.

Digital wallets are an untapped potential – Despite rapid adoption in ecommerce and retail, lenders have been slow to adopt digital wallets for repayments, with many still relying on traditional methods like Direct Debit and card payments that require borrowers to manually input their details.

To address the growing innovation gap in the UK’s lending market, Acquired.com recently launched a proprietary Sweeping VRP solution. VRPs offer a modern alternative to traditional repayment structures that combine the speed of card payments with the reliability and structure of Direct Debit. Acquired.com’s solution has been purpose-built to support lenders in delivering flexible, intelligent repayment journeys.

Greg Cox, CEO at Acquired.com, said:

‘The lending landscape is evolving, and so must the tools and strategies used to navigate it. There has been some progress across the industry, but there’s still significant ground to cover. The path forward is clear: lenders who orchestrate intelligent, responsive repayment experiences will collect more, spend less, and build stronger borrower relationships. Those who continue with rigid, single-channel approaches will fall further behind—in collections, costs, and compliance.’