UK FinTech GoCardless has launched a new open banking feature.
In Brief:
GoCardless offers payments between banks.
Its new open banking feature is called Instant Bank Pay.
It offers merchants the opportunity to collect payments instantly at a lower cost.
What does this mean?
GoCardless has big plans for open banking. After its Series F fundraise last year, which came to $95mn and was led by Bain Partners, it said that it would be able to focus on disrupting the payment landscape through open banking.
Now, Co-Founder and CEO Hiroki Takeuchi has commented on the new development: “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.
“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.”
