Creditspring
One-off payments, recurring payments, chargeback protection — Creditspring gets it all from GoCardless, so it can give its all to providing members with flexible, affordable finance.
About
Short-term loans
Integration
Office locations
Payer locations
Key benefits
12 million
payments processed through GoCardless.
75%
recuperation rate with Protect+, increased from 55%.
Three of every four
chargebacks successfully challenged.
Any payment processed, every payment protected
Creditspring’s flexible borrowing with a difference is shaking up the consumer finance market. No interest, no hidden fees. Just a fixed subscription and the opportunity for members to increase their credit score with every on-time repayment.
“40% of UK consumers have barely any savings, and many have real trouble accessing credit,” said Hannah Matson, Chief Operating Officer, Creditspring. “We offer members short-term liquidity in the shape of transparent, no-interest loans provided for a fixed fee.”
GoCardless is helping Creditspring to deliver this stress-free financing through a seamless blend of recurring and one-off payments.
All singing, all dancing payments
Creditspring collects members’ monthly repayments and annual membership fees by Direct Debit, and lets members make one-off repayments through Instant Bank Pay, an open banking-powered alternative to cards. Both are handled by GoCardless, which means both also come wrapped up in a friction-free onboarding experience.
“GoCardless is an all-singing, all-dancing payment provider,” said Hannah. “Members hardly notice it’s there during sign up, which is what you want from a payments solution, and it’s supremely reliable. We've processed nearly 12 million payments since we started using it.”
Creditspring’s members love having flexible payments they can rely on, according to Luke Chapple, Senior Customer Operations Manager, Creditspring. “Customers enjoy our product because they know exactly how much they’re paying back to us each month, and when,” he said. “They get the best of both worlds in terms of predictable Direct Debits for their monthly payments, and flexible one-off payments whenever they can afford them.”
Instant payments ramp up the flexibility
Those one-off payments are collected with Instant Bank Pay, a mobile-first, open banking-powered payment method that provides instant payment confirmation for Creditspring and their customers. So if a member wants to pay off their loan early, they can, or if their Direct Debit fails then they can catch up on their repayments right away.
“Instant Bank Pay really ramps up our flexibility by allowing customers to make on-demand repayments directly from their bank account,” said Iga Bracey, Senior Operational Risk Manager, Creditspring.
It’s also faster than card payments in more ways than one. This means members can clear their balance more quickly, so they can get earlier faster access to their next loan advance. And they can just log into their bank app to make a payment instead of entering their card details.
Instant Bank Pay offers ultimate convenience for Creditspring because it can collect one-off and regular payments from a single platform. “That massively simplifies reconciliations, so it’s much better for us on the operational side,” said Hannah.
Challenging chargebacks… and winning
Chargebacks are a constant menace for Creditspring. They cost time and money to resolve, and they disrupt revenue. But it has successfully challenged three out of every four chargebacks that have come its way since it started using Protect+ from GoCardless.
“We get quite a lot of chargebacks, and Protect+ helps us to efficiently process and challenge them,” said Hannah. “Protect+ has boosted our recuperation rate from 55% to 75%.”
Creditspring has access to another powerful weapon in the fight against chargebacks: its GoCardless Customer Success Manager. “It’s great to have a payments expert always on the other end of the phone,” said Luke. “That’s really benefitted us when it comes to pushing back on chargebacks and regaining that revenue to invest in the business. Our regular catch ups are also an opportunity to talk about other payment innovations that would help us.”
The future of recurring payments
A recent hot topic during those discussions has been Variable Recurring Payments (VRPs), another open banking solution.
We're excited about VRPs. They’ll allow customers to vary the amount they repay each month, more easily than they can with Direct Debit and without having to action a one-off payment.
Because VRPs are instant, they’ll also close the window between customers making a recurring payment and the money landing in Creditspring’s account, improving visibility for both. “The dynamic element of VRPs is exciting,” said Hannah. “Anything that makes payments faster and more flexible is good for our members and, because VRPs are instant, their payments will immediately be reflected in their balance."
Speedy growth and better sleep
As Creditspring gears up for a phase of rapid growth it is confident its payments infrastructure can keep up.
“We can trust GoCardless to support our speedy growth by reliably bringing in revenue,” said Hannah. “GoCardless is safe, it's reliable, and if there are ever any issues the team is highly responsive. That all means I can sleep easy at night.”
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