GoCardless, the leading fintech for recurring payments, has created the first global network for bank debit, bolstered by a partnership with TransferWise, the global technology company for international payments.
The new network is the only simple, predictable and transparent way to collect recurring payments such as subscriptions, invoices and instalments via bank debit – a method which reduces failure rates by up to four times when compared to cards1. GoCardless customers can collect payments via multiple bank debit schemes around the world, without the need to navigate the specific rules for each, through the GoCardless API, dashboard or partner integrations.
By integrating directly to the TransferWise API, businesses can benefit from low cost, convenient and completely transparent pricing no matter what the currency, without leaving their account. This cuts out the pain of having to open a new bank account in every country where the business collects payments, as well as eradicating hefty receiving fees for foreign currency transactions.
With the ability to collect and pay out in over 30 countries worldwide – representing 70 per cent of the global recurring payments volume – the new network will be available to all GoCardless customers via a phased roll-out starting mid-November 2019. Businesses will receive payments at the real exchange rate in GBP, USD, EUR, SEK, DKK, CAD, AUD and NZD.
Hiroki Takeuchi, CEO and co-founder of GoCardless, said: “Businesses today have global ambitions, but an antiquated, fragmented and opaque payments system is holding them back.
“Our new network represents a major milestone in our mission to fix this broken system. Companies of all sizes can now tap into the only global network for recurring payments, built on the tried and trusted method of bank debit, with real exchange rates powered by TransferWise. This will take the pain out of getting paid and enable every business to operate in a way that’s truly borderless.”
Taavet Hinrikus, chairman and co-founder of TransferWise, said: “GoCardless shares our passion for bringing fairness and transparency to the business banking sector. With GoCardless customers trading internationally in over 30 countries, giving them the ability to collect payments in currencies all over the world is a major step change for businesses trading across borders.
“Together, we’re setting the new standard for business banking, using new technology to offer cheaper, faster, more transparent services that truly meet the needs of today’s businesses.”
The move comes at a time when businesses are looking abroad for growth. New research from YouGov and GoCardless spanning six markets indicates 73 per cent of businesses surveyed plan to grow internationally within the next five years. Despite these ambitions, 39 per cent say the complexity of taking international payments is holding them back from global expansion.
Of those taking international payments, nearly half (49 per cent) feel frustrated by the extra admin required, such as opening multiple bank accounts and reconciling different currencies. A similar proportion (51 per cent) called out the lack of transparency, such as hidden fees and complex pricing.
Already businesses – such as US-based digital marketing agency Growth Alliance which has clients in the UK, US and Australia – can see how the new network takes the pain out of getting paid.
Founder James McGlade said: “We’ve been looking to expand our international footprint for a few years, but the complexity of taking payments abroad seemed too much of a hassle. The new network is just what we’re looking for. The FX capability will save us a significant amount of time when reconciling our books, and having just one bank account means it’s easier to comply with banking regulations. It’s going to be a game changer.”
For more information visit gocardless.com/international-payments.
Notes to Editors
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 741 adults (senior decision makers in private businesses of 50 or more employees) in the US, UK, France, Spain, Germany and Australia. Fieldwork was undertaken between 14th – 30th October 2019. The survey was carried out online.
The sample size within the UK consisted of 232 adults (senior decision makers in private businesses of sizes of 50 or more employees). Fieldwork was undertaken between 14th – 18th October 2019. The survey was carried out online. UK results are as follows:
58 per cent of UK businesses plan to grow internationally within the next five years. Despite these ambitions, one in five (19 per cent) say the complexity of taking international payments is holding them back from global expansion.
Of those taking international payments, more than a third (37 per cent) feel frustrated by the extra admin required, such as opening multiple bank accounts and reconciling different currencies. A similar proportion (38 per cent) called out the lack of transparency, such as hidden fees and complex pricing.
The new GoCardless network is competitively priced at 2% + 20p (or local equivalent) per transaction.