GoCardless reaches first profitable quarter as payment volumes double

The open banking payments firm’s milestone suggests that bank-to-bank payment processing at scale can sustain a viable business model.

GoCardless reported its first quarter of positive adjusted EBITDA in FY25, alongside 22% revenue growth and a doubling of payment volumes to £79.2bn. The company attributed much of the volume increase to its earlier acquisition of open banking firm Nordigen, which broadened its pay-by-bank capabilities across European markets.

The profitability milestone matters beyond GoCardless itself. Open banking payment initiation has faced persistent questions about unit economics – whether account-to-account payments can generate enough margin at scale to justify the infrastructure investment. A company processing over $130bn annually reaching profitability is the clearest evidence yet that the model can work, at least for firms with sufficient volume and geographic reach.

The results come alongside a restructuring that will cut around 90 roles, and amid reports that Mollie is pursuing an acquisition of GoCardless. If confirmed, that deal would create one of Europe’s largest independent payment processors with deep open banking capabilities – a consolidation play that reflects where the market is heading.

Editorial note: Multiple sources covered this story; taken together, they illuminate a significant proof point for open banking payment economics and a potential consolidation moment in European payments.

Sources: GoCardless posts first profitable quarter — Finextra | GoCardless sees revenue boost, plans to cut around 90 roles — Tech.eu | GoCardless Grows 22% in FY 25 — FF News | Why Acquiring GoCardless is Mollie’s Biggest Win — FinTech Magazine

UK consumer warnings highlight growing pains for pay-by-bank adoption

Consumer protection gaps are drawing mainstream media attention as open banking payments reach 30 million monthly transactions in the UK.

Money Saving Expert issued a public warning about the risks of using pay-by-bank (account-to-account) payments on major e-commerce platforms such as Amazon and eBay. The concern centres on the lack of chargeback and Section 75 protections that card payments provide, meaning consumers who pay by bank transfer have significantly less recourse if something goes wrong with an order.

The warning comes as UK open banking payment volumes have passed 30 million successful transactions per month, according to the Open Banking industry body. That growth makes the consumer protection gap increasingly material rather than theoretical. While the payments industry has been focused on adoption metrics and conversion rates, the absence of a standardised buyer protection framework for account-to-account payments remains the most significant barrier to broader e-commerce use.

This is a policy problem as much as a market one. The UK’s Smart Data legislation and the work of the future open banking entity are expected to address protections, but nothing concrete is yet in place. Until it is, mainstream consumer media flagging the risks will act as a drag on adoption and a reminder that payment method competition is fought on trust as much as cost.

Editorial note: Consumer protection for open banking payments is a live policy question in the UK and EU; mainstream media coverage turning negative makes it more urgent.

Sources: Money Saving Expert warns against payment method on Amazon, eBay and others — Mirror | Money Saving Expert issues warning when paying on Amazon, eBay and others — Express