LONDON—Two fintech companies are partnering to facilitate recurring cross border/cross currency payments without the use of a credit or debit card, and further seeking to put that capability within reach for smaller businesses.
GoCardless has partnered with money transfer company Transferwise to facilitate consumer and business transactions from one transaction account to another using checking account, not card, credentials, reported Payments Journal.
“Paying invoices through account-to-account transfers may not be particularly difficult for a domestic transfer, but managing foreign exchange and local laws gets complex very quickly, particularly for medium and smaller companies,” noted Payments Journal.
30 Countries Involved
Now the new partnership with Transferwise businesses sets up direct payments in 30 countries in multiple currencies using a single online interface.
According to GoCardless Co-Founder and CEO Hiroki Takeuchi, the creation of the business will be something of a game-changer for certain types of business.
“Until now, if you wanted to take recurring payments, you have had to use something like Visa or Mastercard,” he said.
Takeuchi said the card method is both expensive and subject to high failure rates. “This is a big problem,” he said.