Octopus, GoCardless complete $16bln direct debit migration

The migration is a significant operational milestone for the energy supplier, designed to streamline payment processes and improve speed for its 11 million global customers

Octopus Energy has successfully completed one of the largest Direct Debit migrations in UK history, moving 5.5 million customer mandates and £12 billion ($16.23 billion) in payments to fintech platform GoCardless.

The migration is a significant operational milestone for the energy supplier, designed to streamline payment processes and improve speed for its 11 million global customers. The primary benefit for consumers is a drastic reduction in refund times.

Historically, energy refunds could take up to five working days to process. Following the migration to GoCardless’ technology, Octopus Energy customers can now receive refunds in their bank accounts in as little as one to two days—a timeframe the company claims is faster than any other major supplier.

The speed is enabled by a self-service model within the Octopus app. According to the company, 70% of customers now use the in-app “self-refund” option, which automates approvals. This system processes approximately 30,000 refunds every week.

Greg Jackson, founder and CEO of Octopus Energy, commented: Moving £12 billion ($16.23 billion) of payments with zero disruption is a huge technical achievement. It’s another step in using technology to make energy fairer and faster for customers.

The partnership with GoCardless, a global bank payment company processing over $130 billion annually, underpins Octopus’s strategy of using technology to reduce administrative friction. By automating the back-end transaction processes, the energy supplier aims to free up its customer service teams to focus on complex queries rather than repetitive payment administration.

Hiroki Takeuchi, co-founder and CEO of GoCardless, added: We’re proud to power payments for Octopus Energy – a company that, like us, uses technology to make life simpler. This shows what’s possible when two tech-driven companies collaborate for good.