UK-based payments scaleup GoCardless has launched a US debit solution.
The new product will support debit payments on the ACH (Automated Clearing House) network, meaning customers can pay by recurring bank payments instead of using a credit card. Customers can also use the debit payments for B2B transactions.
Unlike in the UK, GoCardless believes that the B2B option is where the FinTech firm will see the most recurring payments, according to an interview conducted by TechCrunch. Businesses using the ACH debit solution will also get better overview of their payment flow through the company’s automatic collection system. That includes due dates and the ability to see the success of the payments, as in whether or not they failed to go through.
The news comes on the back of GoCardless’ impressive $75m Series E funding round in February. The round was backed by investment management services provider Adams Street Partners, the VC fund spun out of Google GV and Salesforce ventures. The round brought the total amount invested into the company to $123m.
At the time, GoCardless stated that it would use the money to invest in its US operations, which it has done by this new product and by opening new San Francisco offices.
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