A new innovation that allows companies to process Direct Debits without using banks or PayPal has been lauched in the West Midlands.
GoCardless, which was founded by graduates Matt Robinson, Hiroki Takeuchi and Tom Blomfield, has developed a simple online tool that SMEs can use to collect payments more cheaply.
Hundreds of companies from ten different sectors in the region are already using the system to process millions of pounds of transactions each month.
Bosses have been impressed with the free sign-up facility, no monthly charges and an innovative pricing structure that charges just one per cent of the transaction total to a maximum of £2. This is less than a third of mainstream rivals, such as PayPal and WorldPay.
Mr Robinson said: “Direct Debits are without doubt the most reliable way to take payments, but the banks have long excluded all but the very largest merchants from accessing the scheme.
“Instead, small business owners must attempt to manage unpredictable cash-flows whilst losing key staff to chasing payments, not to mention the possibility of missing out on growth opportunities.”GoCardless has grown 50 per cent month-on-month since its launch in 2011. It has recently secured a $5m funding package from UK venture capital funds Accel Partners and Passion Capital to help drive its public rollout in key regional centres and across Europe.