What is borderless payments and what problem does it solve?
Q: What is borderless payments?
Borderless payments is a new way to collect recurring payments internationally.
It's sort of everything that businesses love about bank debit and GoCardless and the system we've always had but now on an international scale.
So it allows you to collect from more than 30 countries via bank debit, from the customers in their own currencies, then it gets converted using the real exchange rate, so the actual rate with no markup, and settled back into your home bank account, in your own currency.
It's really easy to set up, you've got full visibility of the exchange rate we use - we're really transparent about that. And it gives you more predictable cash flow from your international business which is traditionally something that can be lacking.
Unlike banks or card providers, as I mentioned we don't take a cut of the exchange rate you just get the real exchange rate. And there is just a simple transaction fee that covers the fee we take. There's nothing hidden in the rate.
Q: What is the problem that borderless payments solves?
I guess traditionally a lot of payments, especially B2B payments when they're being taken internationally are by bank transfer or wire transfer. But really that's not because that's the preferred method, that's because of lack of choice. The alternative obviously is card payments but that can come with a lot of fraud and high failure rates when you're collecting internationally.
There is also a bunch of challenges there as well. For domestic payments, businesses have trusted the bank debit network; as I've said we've offered them as part of the GoCardless service for a long time very successfully, but they are really a domestic solution, allowing you to only collect within a single geography.
So what we've done is built the first recurring payments network with an emphasis on that point of network to solve that problem. Linking up all of these domestic bank debit schemes in a way that you don't need to worry about.
All you need to know is that you can simply collect from any of our supported currencies in the same way that you could with a single currency previously.
So it's simple, transparent and predictable. You've got the option to not deal with the pain and expense of wire transfers and let your international customers use bank debit instead.
So it's all about providing more choice for the consumer or for the businesses that need to collect recurring payments.