The LarderBox is one of a number of monthly subscription services using GoCardless. Starting at £16.50/month, they deliver a hand-picked selection of speciality food products to your door. The service launched in January and is growing fast.
Prior to using GoCardless they were accepting payments using PayPal. This was causing three key problems:
- They were paying around 5% transaction fees which cut into their profit margins.
- The system wasn't ideally suited to recurring payment with some users struggling to sign up, leading to lots of support queries
- It was difficult to know who had paid, causing problems on the ops side as they didn't know when they were safe to distribute produce
Their main concern when signing up was that people might be more reluctant to sign-up with their bank details so it's something that we've kept a close eye on for them, and in fact they've had similar (if not higher) rates of conversion since making the switch.
Furthermore, having made the switch to GoCardless they have found it has made a huge difference to their business and solved each of the three issues they were facing:
- Our fees of just 1% save them £4 on every six month subscription. This equates to hundreds of pounds saved each quarter.
- Since switching they have had a drop-off in the number of support queries about their payment process and even some appreciative emails from customers about how smooth the new process is!
- Our merchant dashboard gives live and easy-to-use information on everything they need to make decisions, respond to customers and run their business.
Founder, Tristan Watson, says "I'm so glad we made the move to GoCardless. Making the switch was easy after what we've grown to expect from payment providers. The product is fantastic - particularly for recurring payments - and I honestly can't recommend them enough to other subscription businesses."
To start collecting online payments for your business using bank-to-bank transfer, check out our getting started blog post then sign up on our homepage. If you have more questions then check out our FAQ.