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April 27, 2021

UK fintech GoCardless launches open banking payments

By Evie Rusman

UK fintech GoCardless has launched a new open banking feature, enabling merchants to accept bank-to-bank payments.

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Through the solution Instant Bank Pay, merchants can take instant, one-off bank-to-bank payments from new and existing customers.

Hiroki Takeuchi. co-founder and CEO of GoCardless, said: “We’ve specialised in bank-to-bank payments for over 10 years, with bank debit as the primary payment method. And while it provides many advantages to consumers and businesses, speed of payment authorisation is a drawback.

“Instant Bank Pay addresses this by giving merchants the best of both worlds: open banking will provide instant confirmation of payment authorisation, enabling them to have immediate visibility of their one-off payments, and bank debit will continue to offer the cash flow, cost and retention benefits they have come to expect.”

The announcement comes after GoCardless secured $95m in a Series F funding round, bringing the company’s valuation to over $970m. At the time, the company said it would use the funding to accelerate its open banking strategy by combining new technology with its global bank debit network.

Instant Bank Pay

As part of the launch of Instant Bank Pay, GoCardless plans to expand its offering into the adjacent e-commerce market. The fintech said in this capacity the solution can take on both one-off and ‘card-on-file’ payments.

Takeuchi added: “By enabling businesses to take any kind of payment through GoCardless, we can challenge the dominance of cards and move beyond collecting subscriptions, invoices and instalments.”

Broadband provider Cuckoo used Instant Bank Pay as part of an early access programme. Speaking on this, Cuckoo founder and CEO, Alexander Fitzgerald, said: “We’re taking on a broken broadband industry with simple pricing, fair contracts and exceptional service. The payment process plays a vital role in our mission and working with GoCardless means our customers have a seamless payment experience when switching to us and paying their monthly bill.

“We’re excited to continue using Instant Bank Pay for one-off payments. Not only will it prevent our customers from losing access to our services, it’ll also help reduce the time we spend chasing late payments and the risk of costs outstanding.”

 

Free Report
img

Prepare for changes in the Payments market

 The Payments market has seen drastic changes in the past few years, with this only expected to continue. What does your company need to do to prepare for what’s to come? GlobalData’s Payment Trends for 2022 report explores the key trends in technology, consumer habits, and regulations shaping the market. We also identify the leading companies in this changing market, giving you a competitive market outlook. This report covers the impact of:
  • ESG
  • E-commerce
  • Mobile payments
  • Alternative payment rails (Real-Time Payments, Blockchain, BNPL)
  • Fraud & Cybersecurity
  • Regulations
Download the report now to learn essential strategies to maximize your growth in the face of rapid change.
by GlobalData
Enter your details here to receive your free Report.

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