3 ways GoCardless helps you choose the right payment mix

Choosing the right mix of payment methods for your customers can greatly impact customer acquisition and retention. So, it’s important to consider methods that are both available to and preferred by consumers.

In a 2021 YouGov survey commissioned by GoCardless of over 15,000 consumers, globally almost 2x as many consumers have access to debit cards or bank accounts (for bank-to-bank payments) than cheques. 27% more consumers have access to debit cards or bank accounts (for bank-to-bank payments) than PayPal. From this research, it’s clear that no single payment method gives you complete market penetration, but access to debit cards and bank accounts are most common. Having the right mix is essential to meet consumer demand. 

In this guide we will discuss 3 ways GoCardless can help you find the right payment mix for your business:

• Selecting the most preferred payment methods

• Choosing the most preferred currencies

• Improving payments better with open banking

Selecting the most preferred payment methods

The type of product or service a consumer is buying can change which method they use to pay. For consumers making recurring payments like; household bills, subscriptions and instalments in Australia bank debit is the most popular choice in the majority of use cases. And there is a similar story across the globe, local equivalents to bank debit rank in the top three choices for consumers to use for recurring payments.

For B2B businesses collecting recurring payments, we see a similar story. For B2B online subscriptions the preference for bank debit is 44% compared to that of cards which is only 34%. 

Whether you’re a B2C or B2B business, by offering the most preferred and popular payment methods to potential customers, like bank debit, you increase the chance that they will purchase from you and reduce friction in the checkout process. 

How can GoCardless help you?

To give your new and existing customers the best-in-class payment experience you should include bank debit with other payment methods. Because bank debit is a ‘pull-based’ payment method, it’s not surprising it is one of the most convenient ways to pay for recurring payments for consumers. Bank debit offers safety, flexibility and automation.

Over 60,000 businesses have chosen GoCardless as their bank debit payment provider. Collecting bank debit payments with GoCardless has many advantages including:

• Giving you control of when to collect payments

• Not having to pay expensive card transaction fees 

• Successfully collect 97.3% of payments on the first try

• Using automation to reduce the admin burden and free up staff time for high-value work

How GoCardless helped Docusign:

Before using GoCardless, DocuSign didn’t offer bank debit, but almost a year into the relationship things look very different:

• 11% of new customers choose GoCardless where it’s available, and that figure is steadily increasing. 

• Preference is particularly strong in the Netherlands and Germany, where 35% and 23% of respective new purchases use GoCardless.

• Customers choosing to pay by GoCardless typically spend more, with an average selling price (ASP) 14% higher than other common payment methods.

Find out how you can benefit from collecting payments with GoCardless.

Choosing the most preferred currencies

As your business expands into new territories, making your product or service available in the local and most preferred currency is a no-brainer to make sure you capture the most customers. 

However, collecting payments in new currencies can be a frustrating process. Of those already collecting international payments, 49% feel frustrated by the extra admin required. Additionally, collecting payments in other currencies can be costly and visibility about how much it costs your business can be poor. 

How can GoCardless help you?

With GoCardless you can collect payments in local currencies in over 30 countries using our global solution. Countries include the United States, Eurozone countries, United Kingdom, Canada, Australia and New Zealand. 

Our network brings together previously fragmented and restricted bank debit schemes, allowing you to settle payments in a single currency and in one bank account. By using GoCardless to diversify your payment options you’ll be collecting recurring payments at the real exchange rate in the only simple, predictable and transparent way to collect subscriptions, invoices and instalments via bank debit.

How GoCardless helped Quandoo:

Find out more about how you can reduce international barriers and benefit from the only global recurring payment network.

Improving payments better with open banking

There is a desire for a more transparent and open exchange of financial data from both businesses and merchants across Australia. Australia saw the first iteration of open banking in the form of the Consumer Data Right (CDR), allowing customers of the big four banks to securely share their financial data with accredited third-party fintechs and other financial institutions. But how does this impact the way businesses meet consumer payment preferences?

With the increased access to data, businesses and consumers will have access to better-suited financial products and services. This could impact the method consumers use to pay. 

As confirmations of payment take a few days, bank debit isn’t often the payment method of choice for one-off payments. As a result, many businesses don’t offer bank debit as a payment method because of the poor one-off payment experience it provides. Meanwhile, other payment methods aren’t desirable for businesses or customers to make one-off payments either. Methods like cards have expensive transaction fees and bank transfers offer a poor customer experience. 

Speak to an expert about incorporating open banking into your payments strategy.

How can GoCardless help you?

Many recurring revenue businesses need to collect one-off payments but they are unable to offer bank debit because of the poor one-off payment experience it provides. We have developed Instant Bank Pay, which is powered by open banking and currently only available to collect payments from British customers. It allows recurring revenue businesses to collect one-off payments seamlessly and fits a variety of use cases. 

This bank-to-bank payment method means more businesses can offer bank debit as the preferred payment method to customers in the UK for recurring payments, as one-off payments can now easily be collected too. This new feature also reduces checkout friction and creates a better customer experience.

With Instant Bank Pay businesses can:

• Collect a first-time payment while simultaneously setting up a bank debit mandate

• Top-up an account without customers having to enter long card details

• Charge for extra products or services outside of a payment schedule

• Easily collect failed payments 

Broadband provider, Cuckoo Broadband has already been using the new feature to chase failed payments in the UK and save the businesses both time and money. 

How GoCardless helped Cuckoo Broadband

*GoCardless market research, February 2021