GoCardless launches fully integrated open banking service
GoCardless, the London-based online Direct Debit specialist that manages the entire collection process for merchants, has launched its fully integrated open banking payments solution across all features of its worldwide platform.
According to reports, the Instant Bank Pay will provide merchants with an economical solution for instant payments collection, to push back the dominance of cards for one-off payments.
GoCardless first announced its open banking strategy in December 2020 following a US$95m capital injection in a Series F round that boosted the company’s valuation to $970 m.
Currently, GoCardless serves 60,000 merchants and the much anticipated introduction of Instant Bank Pay will enable the fintech to expand its offering into the adjacent e-commerce market, where it will take on one-off and ‘card-on-file’ payments.
Fintech open banking
GoCardless’s own data suggests that, 85% of merchants with this business model often need to collect additional one-off payments outside of a customer’s regular payment schedule. The new Instant Bank Pay solution manages this for businesses with recurring revenue payments.
The open banking solution offers greater flexibility and lower costs compared to bank debit. This is not appropriate for one-off payments because it doesn’t offer merchants with instant visibility of payment authorisation. But bank debit has resulted in merchants relying on high-fee card payments or time-consuming bank transfers to make the payments.
Speaking about the news, 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.”
He continued, “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.”
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. The launch of this open banking feature means we can now serve any merchant, regardless of whether they have an ongoing or one-off relationship with their customers.”
Open banking has proved popular with merchants and consumer interest in open banking is also on the increase. One study found that 63% of UK customers would be willing to try new online pay options if they offered more secure transactions.
Everton FC signs Sokin as its global payment partner
Everton Football Club have signed up Sokin as their official global payments partner.
Sokin is a new global currency account provider that specialises in creating open and transparent payments platforms.
The innovative fintech which launched in 2019, has agreed to a multi-year partnership that will see Sokin’s cutting-edge platform handle the Liverpool-based football club’s global currency transactions.
Disruptive startup fintech
Sokin’s founder Vroon Modgill, a first-generation immigrant, discovered how cumbersome money exchanges were and set about creating a frictionless system that can transfer funds cheaply, swifty and easily to global destinations.
The London-based fintech has grown massively since its launch and now has offices in 10 countries. Sokin also provides a streamlined subscriber platform that opens up global access to FX transfers and payments, allowing people and businesses to transact in 38 currencies and 200 countries and territories.
Fintech partnership with Everton FC
The long-term agreement with Everton sees Sokin further boost the Blues’ growing partnership portfolio while the fintech’s collaboration with the football club strategically supports Everton's FX and payments requirements via its global platform.
The partnership will also propel Sokin into a new position as a leading global fintech provider. Modgill said of Everton FC, “This ethos is a fantastic fit for Sokin’s services. As a leading financial service provider, we exist to make global payments simple and offer a trouble-free service that our customers can trust.
“We look forward to seeing the Sokin name appear around Goodison Park – one of football’s most iconic stadiums – and embarking on this journey together. Sokin – the People’s Card, working with the People’s Club.”
Speaking about the partnership, Alan McTavish, commercial director at Everton, explained, “We are delighted to welcome Sokin on board as our newest club partner and look forward to helping them promote their leading global payments offering to millions of our fans and followers around the world.
McTavish added, “Working with such a global brand is an integral part of our commercial growth strategy. Sokin is a truly innovative, forward thinking company that puts its customers and customer experience at the centre of its operation and is a perfect fit within our exciting partnership portfolio.”