GoCardless, a London-based fintech that specializes in businesses that collect recurring payments, announced an agreement to launch automated clearing house-based debits through a partnership with Community Federal Savings Bank.
GoCardless helps companies automate recurring payment collection, which it says can significantly reduce the cost of accepting these type of payments. The company says that in the U.S. about 60% of ACH payments are currently made by paper check.
“This means there is a huge opportunity for the growing number of subscription-based businesses to improve their payment systems,” Hiroki Takeuchi, CEO of GoCardless, said in a company release. “Our ACH offering will enable them to drive down costs, reduce failure rates and decrease involuntary churn every time they get paid.”
The company has opened a San Francisco-based office that will serv as its U.S. headquarters and is led by Andrew Gilboy, general manager, North America for GoCardless. The company previously raised $75 million in early 2019.
Cover image courtesy of GoCardless.