GoCardless has partnered with financial management and accounting platform Pennylane to enable SMEs manage and collect recurring payments.

The partnership will utilise Pennylane’s new subscription management functionality, allowing businesses to automate the creation of recurring invoices and accounts. Meanwhile, GoCardless’ debit network will enable them to automatically debit their customers when each payment is due.

The aim is to reduce the need for manual processes, and in turn, increase efficiency.

Rachel Astall, director of partnerships at GoCardless, said: “We’re excited to work with Pennylane, a company that is a great cultural fit with our own. With its vision to be the best financial operating system for startups and SMEs in Europe and our mission to take the pain out of getting paid, this partnership revolves around our mutual obsession to help merchants save time, reduce costs, maximise cash flow and, ultimately, focus on what they do best. We can’t wait to grow with Pennylane and our joint customers.”

Helping businesses get paid faster 

According to GoCardless, businesses, on average, get paid 47% faster using its services. Its latest alliance hopes to accelerate this further.

One business that has already tapped Pennylane and GoCardless’ services is growth agency Scalability. Scalability allows companies to accelerate their sales through the implementation of an outbound strategy.

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Benjamin Donteville, founder of Scalability, said: “With subscription management from Pennylane, I easily save an hour a week — and that’s without taking into account the mental load that I’m saving.”

He also said that GoCardless’ direct debit facility helped him cut the amount of payments outstanding.

“In April, I had €10,000 in arrears. Now that I use Pennylane’s invoice editor and its integration with GoCardless, I have €400,” Donteville added. 

The partnership follows Pennylane’s announcement that it had raised $18m in its June funding round led by Sequoia Capital. Founded in 2020, Pennylane now supports more than 1,200 business leaders and 100 accounting firms.

Arthur Waller, CEO at Pennylane, said: “We are very happy to work with GoCardless, with whom we share the same ambition: to facilitate the financial management of SMEs so that business owners can focus on their customers and the growth of their company.

“Automating sales management and providing companies with better visibility of upcoming payments are two key elements in achieving this ambition.”

The news also comes as GoCardless has been accelerating its open banking capabilities – in April, the fintech launched a new open banking feature, enabling merchants to accept bank-to-bank payments.

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