Skip to content

GoCardless plans to launch global network for direct debit

GoCardless plans global network for direct debit rate this post rate this post

The London Fintech GoCardless has collected in a new round of financing 66.9 million euros from investors such as Google and Salesforce Ventures. With the money, the company wants to accelerate its rapid expansion.

At first glance, the business model of GoCardless, which is geared to the electronic direct debit, does not seem very innovative. The payment instrument, also known as direct debit, has been used by companies for many years to collect claims from their customers.

In the European Payments Area, which includes Switzerland, Monaco, San Marino, Liechtenstein, Norway and Iceland in addition to the EU Member States, the SEPA direct debit system has replaced national direct debits. It enables fast and convenient electronic payments across European borders.

Return debits should belong to the past

GoCardless sees its business model but a step further. In the future, companies around the world should be able to collect recurring payments from their customers at any time without any problems by electronic direct debit – irrespective of country and currency. Return debits should be a thing of the past.

The GoCardless service can be integrated directly into the CRM / Billing software of the participating companies. The transaction fee costs between 20 cents and two euros.

GoCardless enables immediate or on-time settlement of transactions, making it easier to forecast future revenue. The cash flow of the participants benefits from this.

GoCardless also wants to expand its business in the DACH region of Germany, Austria and Switzerland. So far, Fintech has European locations in the United Kingdom, France and Germany as well as a branch in Australia. At the German office in Munich, five employees currently serve around 500 customers.

Enormous growth planned

Backed by the new cash injection, GoCardless wants to open more locations and hire more employees. Sven Maerz, Managing Director Germany, announced to “WirtschaftsWoche founder” that the currently 280-strong team will be enlarged by 70 percent.

It claims to have more than 40,000 companies worldwide using GoCardless service and handling $ 10 billion in transactions. In addition to Google Ventures (via the link you can buy shares from Google), include about Accel Partners and Balderton Capital to the investors of the 2013 founded fintech. The business consultancy Deloitte awarded GoCardless 2018 with the “Technology Fast 50 Award” for its growth strength

Published inAppsFintechTechnology

Be First to Comment

Leave a Reply

%d bloggers like this: