UK Small and Medium Enterprise credit card platform chooses GoCardless for VRP deployment
GoCardless, a leading Open Banking provider, has announced that it will be offering Variable Recurring Payments (VRPs) to Capital on Tap's small business customers through its feature, 'Instant Bank Pay'. This partnership, which dates back to 2014, has proven to be beneficial, saving Capital on Tap's customers over £15 million in card fees.
Pat Phelan, the Managing Director UK&I and Chief Customer Officer at GoCardless, expressed pride in supporting Capital on Tap as it rolls out this innovative technology. He emphasized that VRPs are designed to help people and businesses move, manage, and make more of their money.
With the integration of VRPs, Capital on Tap's small business customers will have greater payment flexibility. They can now repay their credit cards on a monthly basis using direct debit, and also opt for weekly repayments or recurring payments for variable amounts. This feature is particularly useful for businesses with usage-based or dynamic billing needs.
The one-click checkout experience provided by VRPs enhances customer convenience, saving payment authorizations and offering clear control over payments. This leads to fewer failed payments, improving the overall user experience.
Merchants also stand to benefit from balance checks before payment initiation, reminders for low funds, and automated retries, which lead to improved cash flow predictability. Additionally, open banking VRPs generally have lower costs per transaction than traditional payment methods, reducing processing expenses for merchants.
The partnership between Capital on Tap and GoCardless has seen over £2.5 billion in direct debits collected. Pat Phelan reaffirmed that the partnership with Capital on Tap continues to build on their strong relationship and leverages the convenience of collecting both recurring and ad hoc payments through one trusted provider.
Damian Brychcy, CEO of Capital on Tap, stated that VRPs will bring benefits to Capital on Tap's customers, enhancing their payment timings, providing flexibility, and improving the overall user experience. It can be inferred that Capital on Tap is a UK-based small business credit card and spend management platform.
In summary, the partnership between Capital on Tap and GoCardless demonstrates how small business customers can seamlessly integrate VRP-based payments to improve payment convenience, reduce failure rates, and enhance cash flow management. The use of open banking for payments also reduces fraud risk since card details are not stored, making transactions more secure.
- GoCardless, an Open Banking provider, is expanding its offerings to Capital on Tap, providing Variable Recurring Payments (VRPs) through the feature 'Instant Bank Pay'.
- The partnership between Capital on Tap and GoCardless offers benefits to Capital on Tap's small business customers, such as greater payment flexibility and the ability to repay credit cards on a monthly basis using direct debit.
- VRPs, a technology developed by GoCardless, provides one-click checkout convenience, numerous authorization savings, and automated retries, thereby improving cash flow predictability and reducing fraud risk for merchants.
- This technology-driven move demonstrates the crucial role of technology in modern business and finance, paving the way for efficient, secure, and flexible payment solutions for both businesses and customers.
