What is GoCardless used for?
GoCardless is used by businesses to collect payments directly from customers’ bank accounts, using Direct Debit and open banking bank-to-bank transfers. It is particularly suited to recurring billing — subscriptions, memberships, and instalment plans. GoCardless is FCA-authorised and processed over £30 billion in payments in 2023, making it one of the UK’s largest payment infrastructure providers.
How does GoCardless work for businesses?
Businesses integrate GoCardless via its API or through accounting and billing software such as Xero, QuickBooks, or Salesforce. Once a customer authorises a payment mandate — either by Direct Debit or open banking consent — GoCardless automates the collection on the agreed schedule. Failed payments are retried intelligently, reducing revenue leakage for merchants.
What is GoCardless Instant Bank Pay?
Instant Bank Pay is GoCardless’s open banking-powered product that enables businesses to collect one-off payments in real time via bank transfer. It uses FCA-regulated PISP (Payment Initiation Service Provider) infrastructure. Funds arrive via Faster Payments, typically within seconds, making it suitable for deposit collection, one-off invoices, and e-commerce checkouts.
Open Banking in Practice: GoCardless’s Instant Bank Pay product represents open banking in commercial practice: authorised by the FCA as a PISP, it initiates payments directly from a customer’s bank account with their explicit consent. The Payment Systems Regulator (PSR) oversees Faster Payments infrastructure, which underpins GoCardless transactions. More on openfuture.world.
FAQ
Is GoCardless free to use for customers?
Customers do not pay fees to GoCardless; charges are paid by the businesses collecting payments through the platform.
Can GoCardless be used internationally?
Yes — GoCardless operates in over 30 countries, though UK Direct Debit and open banking features apply specifically to UK accounts.
What is the difference between GoCardless Direct Debit and Instant Bank Pay?
Direct Debit is a pre-authorised recurring payment; Instant Bank Pay uses open banking for real-time one-off transfers with consumer consent each time.