Skip to content
Go to GoCardless homepage
Pricing
Log inSign up

IDC study demonstrates business value of GoCardless

Apr 20203 min read

IDC, the premier global provider of market intelligence, recently conducted research into the business value of the GoCardless platform. With some of the world’s leading companies - such as Amazon, Microsoft, IBM, and Salesforce - looking to IDC’s analysts for data-driven evaluations of their products, we’re excited to release the results today.

In a world shifting ever towards subscription services and away from product ownership, recurring payments are more critical than ever for businesses to get right. But taking recurring payments is swamped with problems of high cost, high maintenance, high churn, low conversion, and long pay out times. Often, these problems are mistakenly seen as the “price of doing business”.

Since 2011, GoCardless has been on a mission to solve these problems. The white paper from IDC that we’re releasing today quantifies how successful we’ve been on that mission.

Conducting in-depth interviews with 10 organizations that depend on accepting recurring payments from customers as a core aspect of their business models, IDC explored several key areas:

  • Cost of processing payments

  • Time spent managing payments

  • Time to receive pay outs

  • Market penetration of payment methods

  • Additional revenue generated

  • Efficiency of customer support and finance teams

If you want to read the full white paper, you can download it here. If you’d like to speak with our Sales team, you can here. Otherwise read on for a quick snapshot at the key insights from the paper.

The problems with payments

Costs to process payments are high

With businesses processing anywhere from thousands to millions of payments annually, the cost of accepting payments from customers can be significant. Credit cards - the de facto standard payment method for many subscription businesses - typically cost the merchant in the realm of 1.5% to 5% per transaction.

Payment platforms require too much human resource to manage

Similar to the popularity of credit cards for paying for subscriptions, some markets and industries see bank transfer as another de facto standard payment method, simply from historical habit of using it. This places unnecessary burden on businesses in terms of administration and reconciliation.

Not only is there this ongoing maintenance cost, but different payment platforms vary significantly in terms of the time and cost required to set up, as well as the depth and timeliness of the payment information they provide the business.

Customer payment preference varies significantly

As stated earlier, many subscription businesses see credit cards as the de facto standard payment method. Other markets and industries think the same of bank transfer. These are precedents set by businesses - not by customers. Research into payment preferences around the globe shows that accepting just one payment method is not enough. Additional research by Zuora’s Subscribed Institute shows that subscription businesses accepting more than five payment methods grow on average 21% faster than those accepting three or fewer.

Addressing your customers’ payment preferences is key to improving customer experience, and bottom line revenue; an important fact for companies looking to scale acquisition internationally.

Times to receive pay outs are slow

Different payment platforms vary significantly in the time they take to pay out funds to their merchants. Longer pay out times - that is, delayed access to funds - inhibits cash flow forecasting and harms confidence in operational plans.

The effect on your cash flow is compounded by the failure rates of each given payment method. Higher failure rates result in a weaker cash flow.

How GoCardless is solving these problems

IDC interviewed 10 organizations to quantify the business value of the GoCardless platform, particularly how it solved the above problems. The average organization interviewed looked like this:

Number of transactions per year

330,000

Total transaction volume per year

$193.9M

Average transaction size, calculated by average per organization

$107

Number of unique customers paying on platform

42,700

Number of countries supporting recurring payments

5

Here’s a summary of the increased business value that IDC found GoCardless delivers:

  • 56% lower overall cost per transaction accepted

  • 59% less staff time to manage, extend payment platforms

  • 12% more efficient customer support teams

  • 21% more efficient finance / accounts receivable teams

  • 44% more markets with bank debit offered to customers

  • 47% reduced time to receive pay outs

  • $748,300 additional revenue

How you can solve the payment problems in your business

If you want all the insights IDC drew from their research, you can download the full white paper below. Included are a number of graphs and tables that help illustrate some of the metrics we’ve talked about above, as well as some individual insights into specific organizations in the form of both stats and quotes.

If you’re ready to speak to our Sales team about how GoCardless can work for your business, you can contact them via the button below.

[White Paper] The Business Value of the GoCardless Platform for Accepting Recurring Payments

IDC, the premier global provider of market intelligence, interviewed 10 organizations to quantify the benefits of using GoCardless to collect recurring payments. See all the insights by downloading the white paper now.

Download white paperTalk to Sales

Interested in automating the way you get paid? GoCardless can help

Contact sales

Contact Us

Sales

Contact sales

+1-415-223-0253

help@gocardless.com

Support

help@gocardless.com

Seen 'GoCardless Ltd' on your bank statement? Learn more

GoCardless Ltd., 600 California St, San Francisco, CA 94108, USA

GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration number 597190, for the provision of payment services.