UK Small and Medium Enterprise (SME) credit card platform chooses GoCardless to implement Virtual card-based payment solution

Capital on Tap, a leading provider of small business credit cards, has announced a significant move to offer their customers greater payment flexibility through Open Banking. The company has chosen GoCardless as its Open Banking payment provider, enabling weekly repayments and recurring payments of variable amounts.

The partnership between Capital on Tap and GoCardless, which began in 2014, has already saved in excess of £15 million in card fees. This collaboration continues to be beneficial, allowing for the collection of both recurring and ad hoc payments through one trusted provider.

GoCardless is proud to support Capital on Tap as it rolls out the innovative technology of Variable Recurring Payments (VRPs). VRPs allow small businesses to collect variable amounts on a recurring basis, which suits businesses with fluctuating bills or subscriptions better than fixed recurring payments.

Benefits of VRPs for Small Businesses

VRPs offer several advantages to small businesses. They provide improved cash flow management, automation of payments, and enhanced control over payment collections. With VRPs, businesses can forecast revenue more accurately and manage finances efficiently because payments settle quickly and predictably.

Automating recurring payments eliminates manual invoice creation and chasing late payments, thus reducing administrative work and saving time for small business owners. VRPs also offer real-time mandate management, instant cancellation capabilities, and spending limits that protect customers and reduce unauthorized payments, leading to smoother and more trustworthy transactions.

Faster fund settlement is another benefit of VRPs. Open banking-powered VRPs typically settle instantly, unlike traditional direct debits that can take days, enhancing liquidity and reducing working capital requirements for small businesses.

GoCardless Offers 'Instant Bank Pay'

In addition to VRPs, GoCardless will also offer 'Instant Bank Pay' for one-off and recurring payments to Capital on Tap's small business customers. This service allows for quick and seamless transactions, further improving the user experience.

Pat Phelan, the managing director UK&I and chief customer officer at GoCardless, believes that VRPs are designed to help people and businesses move, manage, and make more of their money. Damian Brychcy, CEO of Capital on Tap, shares this sentiment, stating that choosing GoCardless for Open Banking payments makes sense due to their strong relationship and the convenience of using one provider for both recurring and ad hoc payments.

Since their partnership, Capital on Tap and GoCardless have collected more than £2.5 billion in direct debits. This figure underscores the success of their collaboration and the benefits it brings to small businesses.

A related news article, titled "ClearBank unveils embedded banking service for SME credit card provider", further highlights the trend towards modernizing payment processing for small businesses.

In summary, the partnership between Capital on Tap and GoCardless empowers small businesses to automate complex recurring payments with greater reliability, control, and faster access to funds. This collaboration aids growth and operational efficiency by providing improved cash flow management, automation of payments, and enhanced control over payment collections.

UK Small and Medium Enterprise (SME) credit card platform chooses GoCardless to implement Virtual card-based payment solution