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GoCardless partners with DocuSign as it grows its US payments business

Rick MorganbyRick Morgan
July 9, 2019
in Banking, Payments
Reading Time: 2 mins read
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GoCardless, a U.K.-based startup that works with 40,000 businesses worldwide and processes $10 billion of payments each year, is adding DocuSign to its list of U.S. partners as it expands its North American business. The payments company announced its partnership with the cloud-based digital agreement platform on Tuesday.

For its clients, GoCardless touts cheaper prices and the convenience of recurring bank payments instead of transactions that go through card networks and result in higher charges for the biller. The startup integrates a direct debit option into companies’ existing payment software, adding an option for recurring payments. For example, DocuSign will integrate GoCardless as an extra checkout option for customers, alongside a credit card or PayPal.

“Even if the first preference of your customers is credit card, having something like direct debit improves conversion by offering a different payment mechanism,” said Pranav Sood, the general manager of international expansion at GoCardless. The company, which counts Survey Monkey and TripAdvisor as some of its major customers, seeks to gain more U.S. business this year and opened an office in San Francisco last month to advance those efforts.

GoCardless’ U.S. clients currently can offer the direct debit option to customers in the U.K., Europe, Canada, New Zealand, Australia, Sweden and Denmark. However, Sood said the company is working to make its direct debit payment feature available to U.S. customers very soon.

GoCardless lets businesses pull recurring payments directly from customers’ bank accounts.

DocuSign and other GoCardless clients can choose when, how much and how often they want to collect funds from customers. Using GoCardless’ technology, companies that bill their customers can send customers a direct debit link via email, invoice or through a website. GoCardless charges 1% of all transactions, with the fees capped at £2 ($2.50).

Sood said customers often lose their credit cards, which can interrupt recurring payment flow. Directly pulling from bank accounts can save clients money on interchange fees that can be as high as 2.7%. Clients also avoid cumbersome international wire transfers fees, he noted.

David Gyori, the CEO of Banking Reports, said interchange fees vary from country to country, so GoCardless’ pricing might not be as competitive everywhere in the world. Although the company does offer a convenient tool for businesses, it isn’t as innovative as something like request-to-pay, which allows customers to pay out of a bank account with a simple biometric authentication, he noted.

GoCardless raised $75 million in Series E funding in February. The eight-year-old company so far has raised more than $122 million.

Tags: GoCardlessPremium
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