GoCardless has entered the US by launching a solution on its platform supporting debit payments on the Automated Clearing House (ACH) network.
Utilising the ACH debit network, merchants can pull payments directly from their customers’ bank accounts. This is at a lower cost than credit cards and without the overhead of cash or cheques.
Furthermore, businesses using the GoCardless ACH debit solution will gain increased visibility over their payments flow through an automated collection system. This also includes a range of information to help manage and reconcile payments including due dates, successful payments, and failed payments.
As a result, GoCardless has completed its unique global debit network, covered over 30 countries and accessed through a single API and platform.
Hiroki Takeuchi, CEO of GoCardless, said: “Our aim is – and always has been – to help our customers focus on growing their business without worrying about how they’re going to get paid. Adding ACH to the GoCardless platform will give businesses across the globe access to the world’s largest market, helping them unlock new revenue streams.
“With the launch of our ACH solution, we now cover 70% of recurring payments worldwide across more than 30 countries, including the US. We’re excited for our customers to harness our unique global debit network, helping them to drive down costs, reduce failure rates and decrease involuntary churn every time they get paid.”
There is a significantly growing demand for ACH debit. In 2018, the system saw 23 billion transactions, of which 13.4 billion were debits.
According to research from GoCardless, one in five US customers prefer to pay for subscription services by bank debit.
Sarah Grotta, director debit and alternative payments advisory service, Mercator Advisory Group, said: “Consumers and businesses have continued to find new uses for ACH payment transactions despite the fact ACH is a forty-year-old, batch-based solution. We find that there is strong growth recently for ACH in bill payments and on-line and mobile payments and also person-to-person (P2P) transactions.
“When making payments, particularly recurring payments for bills or subscription transactions, consumers may not always want to pay with their credit card as they don’t want to run the risk of interest rate charges. Merchants and billers like to encourage the use of ACH as it can be an economical payment choice and bank account details change less frequently than card numbers, reducing the amount of payment maintenance.”