Fintech firms Gocardless and Transferwise have teamed up to create a service to help businesses collect recurring international payments.
Read more: UK fintech Gocardless to launch in the US
Gocardless said it has created “the first global network for bank debit”, and will use Transferwise’s business product to provide the transfer company’s foreign exchange rates to its own customers.
“Businesses today have global ambitions, but an antiquated, fragmented and opaque payments system is holding them back,” said Gocardless co-founder and chief executive Hiroki Takeuchi.
“Our new network represents a major milestone in our mission to fix this broken system. Companies of all sizes can now tap into the only global network for recurring payments, built on the tried and trusted method of bank debit, with real exchange rates,” he added.
Transferwise chairman and co-founder Taavet Hinrikus said the partnership between the two fintechs was “setting the new standard for business banking, using new technology to offer cheaper, faster, more transparent services that truly meet the needs of today’s businesses”.
Business that use the network will not have to open bank accounts in every country where they collect payments, and will not have to commission on top of the real exchange rate for transactions in foreign currencies.
The network will be gradually rolled out to all Gocardless customers from mid-November.
Image credit: GoCardless