GoCardless Overview
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Transcript of GoCardless Overview
ReduceCosts
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
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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
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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.
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Direct Debit in the UK
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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
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
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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
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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 yourbusiness
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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
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Optimised processing of transactions leads to failure reduction and improved customer retention
Failed payment profile with GoCardless*
% F
aile
d T
ran
sacti
on
s
0%
1.25%
2.5%
3.75%
5%
Initi
al P
aym
ent
1st r
etry
2nd re
try
3rd re
try
4th re
try
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
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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
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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.
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