UK Small Business Credit Card Platform Chooses GoCardless for VRP Implementation
Capital on Tap and GoCardless Partner to Enhance Payment Solutions for Small Businesses
Capital on Tap, a leading small business credit card and spend management platform, has teamed up with GoCardless to roll out Variable Recurring Payments (VRPs) through the Open Banking feature, 'Instant Bank Pay'. This partnership aims to bring greater convenience, higher payment success rates, lower costs, and improved cash flow management to small businesses.
The collaboration between Capital on Tap and GoCardless is a prime example of VRPs in action. The partnership was initially established in 2014 for direct debit services, and now extends to VRPs, which will provide ultimate flexibility in how Capital on Tap's customers spend and pay.
With VRPs, customers can authorize dynamic, recurring payments without re-entering payment details each time, facilitating a mobile-first, one-click checkout experience with saved payment authorizations. This removes friction in payment flows and aligns with consumer preferences for seamless, trusted payment methods.
VRPs also enable merchants to verify customer balances before initiating payments and send reminders if funds are insufficient. This reduces failed payment rates and overdraft risks, improving cash flow predictability for small businesses managing credit card spend.
Compared to traditional Direct Debits or card payments, Open Banking VRPs typically incur lower processing fees, which can significantly reduce costs for high-volume payment platforms like Capital on Tap. This cost efficiency is important for small business platforms aiming to optimize expenditure management.
VRPs support variable payment amounts and timings, ideal for usage-based or dynamic billing. This flexibility improves how spend management platforms can handle diverse billing cycles and changing payment amounts, enhancing customer control and consent transparency.
Capital on Tap's small business customers will have greater payment flexibility with the introduction of direct debit, weekly repayment, and recurring payment options. They will also have the option to make weekly repayments and recurring payments for variable amounts through Open Banking.
By working together, Capital on Tap and GoCardless have collected more than £2.5 billion in direct debits. This partnership is a significant step forward in providing small businesses with a streamlined, reliable way to manage credit card payments and spending through Open Banking, thus reducing administrative burden, risks, and costs while enhancing the user experience and cash flow reliability.
Damian Brychcy, the chief executive officer of Capital on Tap, and Pat Phelan, the managing director UK&I and chief customer officer at GoCardless, are both proud of this collaboration. VRPs are designed to help people and businesses move, manage, and make more of their money, and this partnership is a testament to that mission.
[1] Source: GoCardless Whitepaper: Variable Recurring Payments for Open Banking [5] Source: GoCardless Whitepaper: Variable Recurring Payments for Open Banking
- Capital on Tap and GoCardless, through their Open Banking feature 'Instant Bank Pay', are introducing Variable Recurring Payments (VRPs) to bring greater convenience, cash flow management, lower costs, and higher payment success rates to small businesses, as part of their partnership for enhancing payment solutions.
- With VRPs, customers of Capital on Tap can authorize dynamic, recurring payments without re-entering payment details each time, which aligns with consumer preferences for seamless, trusted payment methods and removes friction in payment flows.
- VRPs enable merchants to verify customer balances before initiating payments and send reminders if funds are insufficient, reducing failed payment rates and overdraft risks, thus improving cash flow predictability for small businesses managing credit card spend.
- Open Banking VRPs, compared to traditional Direct Debits or card payments, typically incur lower processing fees, which can significantly reduce costs for high-volume payment platforms like Capital on Tap, making it a cost-efficient solution for optimizing expenditure management in small business platforms.
