Back in 2011, both TransferWise and GoCardless was founded in London in a bid to solve the problem with finances and make it transparent. In this regard, TransferWise offers an alternative way to send money abroad without hidden charges, whereas GoCardless allows businesses to collect payments effortlessly, with transparent pricing.
According to the research from YouGov and GoCardless, 73% of the businesses are planning for international expansion within the next five years. Among them, 39% are hesitant to proceed, citing the complexity of taking international payments.
Hiroki Takeuchi, CEO, and Co-founder of GoCardless said:
Businesses today have global ambitions, but an antiquated, fragmented, and opaque payments system is holding them back.
Fixing old systems that aren’t good enough!
As per the recent development, both companies have joined hands to make it easier for businesses to collect recurring payments from overseas. From mid-November, GoCardless customers will be able to collect recurring payments from abroad at the real exchange rate.
Our new network represents a major milestone in our mission to fix this broken system. Companies of all sizes can now tap into the only global network for recurring payments, built on the tried and trusted method of bank debit, with real exchange rates powered by TransferWise.
For the uninitiated, GoCardless customers could only collect recurring payments from overseas if they had a local bank account in that market until now.
Collect recurring payments without a local account!
With ‘TransferWise for Business,’ the smart foreign exchange tech, businesses small and large, will be able to collect recurring payments from over 30 countries without a local account.
Meaning, the business can soon receive payments at the real exchange rate in GBP, USD, EUR, SEK, DKK, CAD, AUD, and NZD converted to their home currency without any fees.
Taavet Hinrikus, chairman and co-founder of TransferWise, said:
GoCardless shares our passion for bringing fairness and transparency to the business banking sector. Together, we’re setting the new standard for business banking, using new technology to offer cheaper, faster, more transparent services that truly meet the needs of today’s businesses.
Simple and transparent way!
This new network is a simple, predictable, and transparent way to collect recurring payments such as subscriptions, invoices, and installments via bank debit – a method that reduces failure rates by up to four times when compared to cards.
Furthermore, businesses can benefit from low cost convenient and completely transparent pricing by integrating TransferWise API directly. Secondly, it cuts out the pain of having to open a new bank account in every country where the business collects payments.
The move comes at a time when businesses are looking abroad for growth. This will benefit businesses with ambitions to scale globally, as well as businesses already collecting payments from around the globe in a less-than-optimal way.
Main image credits: GoCardless
Stay tuned to Silicon Canals for more European technology news.