GoCardless has teamed up with TransferWise to launch the first global network for collecting recurring payments via bank debit, reports Jane Connolly of Fintech Futures (Finovate’s sister publication).
Customers of recurring payments fintech GoCardless will be able to collect subscriptions, invoices and installments in over 30 countries, without having to open a new bank account in every relevant country or pay large foreign currency receiving fees.
The new network enables customers to collect payments via multiple bank debit schemes around the world through the GoCardless API, dashboard or partner integrations. The partnership claims that a direct integration to the TransferWise API will provide low cost, convenient and transparent pricing.
“Businesses today have global ambitions, but an antiquated, fragmented and opaque payment system is holding them back,” said Hiroki Takeuchi, CEO and co-founder of GoCardless.
“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. This will take the pain out of getting paid and enable every business to operate in a way that’s truly borderless.”
Taavet Hinrikus, chairman and co-founder of TransferWise, added: “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.”
Rolling out in phases from mid-November, the network will allow businesses to receive payments at the real exchange rate in GBP, USD, EUR, SEK, DKK, CAD, AUD and NZD.
TransferWise demonstrated its platform at FinovateEurope 2013. Founded in 2010 and headquartered in London, U.K., the company has raised more than $772 million in funding from investors including Vitruvian Partners and Lone Pine Capital. The firm’s competitors include fellow Finovate alums Revolut and Currencycloud.
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UK-based international payments fintech TransferWise has doubled its value to $3.5 billion after raising $292 million in secondary funding, reports Jane Connolly of Fintech Futures (Finovate’s sister publication).
The Telegraph reports that the round was led by investors including Lead Edge Capital, Lone Pine Capital and Vitruvian Partners. The Sir Richard Branson-backed firm also received investment from BlackRock and existing investors Andressen Horowitz and Baillie Gifford.T
TransferWise’s strategy of providing cheap exchange rates by using two local transfers for each transaction, instead of more expensive single international payments, has attracted more than five million customers since the fintech was founded in 2011.
According to The Telegraph, TransferWise will use the funds to take on 750 more staff over the next year.
“TransferWise is experiencing phenomenal growth and this investment is testament to that,” said Kristo Käärman, chief executive and co-founder. “We don’t need to raise funds on this trajectory, but we’re humbled by the persistent level of interest.”
TransferWise handles a transaction volume of $5.1 billion across its 12 global offices every month. The company demonstrated its technology at FinovateEurope 2013.