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The London-based payments provider, which enables businesses to accept bank-to-bank payments, will use the proceeds to increase sales and marketing and expand internationally.
The round was led by Notion Capital, with existing investors Balderton, Accel and Passion Capital participating to bring GoCardless' total funding to $25m.
Founded in 2011, and after unsuccessfully trying its hand at group payments, GoCardless has built out a platform to make it infinitely easier for small and large business to accept bank-to-bank payments as an alternative to card payments. In particular the startup is targeting subscription-based commerce or any other type of business that relies on recurring payments. That’s because by taking money directly from a customer’s bank account, many of the pitfalls of card-based payments are avoided. This includes when a card is lost, stolen or expires, contributing to a failure rate of up to 15 per cent for card transactions. Direct Debit/bank-to-bank payments offer a potentially much more robust means of accepting regular payments.
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