GoCardless Overview
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The document explains the advantages of using direct debit as a payment method, highlighting its cost-effectiveness, low failure rates, and consumer preferences in Europe, particularly in the UK, Germany, and France. GoCardless offers a simple API for setting up direct debits with automation and compliance, thus enhancing cash flow and customer retention. Direct debit accounts for 26% of electronic transactions in the eurozone, demonstrating its significance and acceptance across various markets.
GoCardless Overview
- 1. Overview
- 3. What is Direct Debit? 3 Pull Pull
- 4. Reduce Costs Reduce Failures & Churn Why Direct Debit? Improve Conversion Card expiration leads to involuntary churn Bank accounts don’t expire and are rarely changed GoCardless failure rate is typically < 0.5% Offer customers an alternative payment method White-Label solution Reduced operational expense through automation Eliminate late payments and improve cashflow Preferred payment method in UK, Germany & France No card networks involved 4
- 5. Why has it been difficult? Designed for paper Digitally native Manual admin Age of automation Local In the Cloud Isolated system Connected business Traditional Direct Debit systems… meet the modern business 5
- 6. Source: European Central Bank statistics for 2014 Direct Debit in Europe Direct Debit is a significant payment method across Europe, encompassing 26% of electronic transactions in the Eurozone. Most key markets in Western Europe have double digit penetration of Direct Debit, indicating strong consumer preference. Key markets include Germany, UK, Spain and France. 6
- 7. Direct Debit in the UK 7 Consumer Preferences 0% 25% 50% 75% 100% Direct Debit PayPal Credit/Debit Card 7%8%5% 27%24% 18% 27% 26% 25% 39%42% 53% Very comfortable Comfortable Less Comfortable Don't know Source: YouGov Survey on Digital Subscription payment preference, October 2016
- 9. GoCardless at a glance Access to 3 of the largest Direct Debit schemes in Europe; Bacs, SEPA and Autogiro3 Schemes 20,000+ £1.5BN+ 100+ Merchants use our service every single month Processed every year as of June-2016 (this number is growing every day!) Partners deliver our service to their customers, including billing platforms like Zuora, Sage, QuickBooks and Chargebee 1 API Powering all of the above 9
- 10. Regulation • AML checks • Transaction monitoring • Account verification • Capital requirements Banking • Bank relationships • Risk management • End-to-end processing • Interpreting messages Scheme • Notifications • Optimised timings • Mandate compliance • Manage idiosyncrasies Product • Processing logic • Report & reconcile • Securing banking data • Customer support GoCardless is a simple API that makes Direct Debit easy to set up and maintain & more to come… UK Eurozone Sweden USCanadaAustralia We’re building a global network for bank to bank payments coming soonlive 10
- 11. GoCardless provide cutting-edge technology, superior payment capabilities and actionable information Cutting-Edge Technology RESTful API Actionable Information Superior Payment Capabilities Reliable and secure platform Continuous product improvement 2-day notification period Advanced bank detail checks Real time alerts Retry and subscription logic built in Sponsorship with tier 1 banks to remove red tape Connected across your business 11
- 12. GoCardless API Merchant Action Create Mandate API Message Customer Sign-up Payment Creation Mandate Reference One-off payment creation Subscription creation GoCardless Payment Reconciliation Real time payment successes Real time payment failures Real time mandate cancellation 12
- 13. Optimised processing of transactions leads to failure reduction and improved customer retention Failed payment profile with GoCardless* %FailedTransactions 0% 1.25% 2.5% 3.75% 5% InitialPaym ent 1stretry 2nd retry 3rd retry 4th retry 5th retry 0.35%0.45%0.55% 0.85% 1.5% 5% *payment failures are analysed on a case by case basis the data above uses the average failure rate of GC merchants 13
- 14. White labelled solution enables seamless customer acquisition UK Eurozone Pre-populate from existing customer info: • First Name • Last Name • Email New info: • Account Number • Sort code Pre-populate from existing customer info: • First Name • Last Name • Email New info: • IBAN Mock-up of payment page 14
- 15. Outsourced Banking Operations and Payment Processing through our API Tier one banking relationships GoCardless have relationships with RBS (BACS) and Barclays (SEPA), which we manage to process payments in the UK and Eurozone. Our dedicated team handles risk and ensures business continuity. Automated payment submissions GoCardless submits mandates and payments directly to the schemes, removing lengthy processes of file submission and reconciliation on your behalf. Inherent payments compliance We handle all regulatory updates to comply with scheme rules. For example, we managed the switch to a SHA-2 SSL certificate for BACS and are currently decommissioning SEPA COR1 - both on behalf of merchants. 15
- 16. Thanks