Overview

Why Direct Debit?

What is Direct Debit?

3

Pull Pull

ReduceCosts

Reduce Failures & Churn

Why Direct Debit?

Improve Conversion

Card expiration leads to involuntary churn

Bank accounts don’t expire and are rarely changed

GoCardless failure rate is typically < 0.5%

Offer customers an alternative payment

method

White-Label solution

Reduced operational expense through

automation

Eliminate late payments and improve cashflow

Preferred payment method in UK, Germany & France

No card networks involved

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Why has it been difficult?

Designed for paper Digitally native

Manual admin Age of automation

Local In the Cloud

Isolated system Connected business

Traditional Direct Debit systems… meet the modern business

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Source: European Central Bank statistics for 2014

Direct Debit in Europe

Direct Debit is a significant payment method across Europe, encompassing 26% of electronic transactions in the Eurozone.

Most key markets in Western Europe have double digit penetration of Direct Debit, indicating strong consumer preference.

Key markets include Germany, UK, Spain and France.

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Direct Debit in the UK

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Consumer Preferences

0%

25%

50%

75%

100%

Direct Debit PayPal Credit/Debit Card

7%8%5%

27%24%18%

27%26%

25%

39%42%53%

Very comfortable Comfortable Less Comfortable Don't know

Source: YouGov Survey on Digital Subscription payment preference, October 2016

Why GoCardless?

GoCardless at a glance

Access to 3 of the largest Direct Debit schemes in Europe; Bacs, SEPA and Autogiro3 Schemes

20,000+

£1.5BN+

100+

Merchants use our service every single month

Processed every year as of June-2016 (this number is growing every day!)

Partners deliver our service to their customers, including billing platforms

like Zuora, Sage, QuickBooks and Chargebee

1 API Powering all of the above

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Regulation

• AML checks

• Transaction monitoring

• Account verification

• Capital requirements

Banking

• Bank relationships

• Risk management

• End-to-end processing

• Interpreting messages

Scheme

• Notifications

• Optimised timings

• Mandate compliance

• Manage idiosyncrasies

Product

• Processing logic

• Report & reconcile

• Securing banking data

• Customer support

GoCardless is a simple API that makes Direct Debit easy to set up and maintain

& more to come…

UK Eurozone Sweden USCanadaAustralia

We’re building a global network for bank to bank payments

coming soonlive

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GoCardless provide cutting-edge technology, superior payment capabilities and actionable information

Cutting-Edge Technology

RESTful API

Actionable Information

Superior Payment Capabilities

Reliable and secure platform

Continuous product improvement

2-day notification period

Advanced bank detail checks

Real time alerts

Retry and subscription logic built in

Sponsorship with tier 1 banks to remove red tape

Connected across yourbusiness

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GoCardless API

Merchant Action

Create Mandate

API Message

Customer Sign-up

Payment Creation

Mandate Reference

One-off payment creation

Subscription creation

GoCardless

Payment Reconciliation

Real time payment successes

Real time payment failures

Real time mandate cancellation

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Optimised processing of transactions leads to failure reduction and improved customer retention

Failed payment profile with GoCardless*

% F

aile

d T

ran

sacti

on

s

0%

1.25%

2.5%

3.75%

5%

Initi

al P

aym

ent

1st r

etry

2nd re

try

3rd re

try

4th re

try

5th

retry

0.35%0.45%0.55%0.85%

1.5%

5%

*payment failures are analysed on a case by case basis the data above uses the average failure rate of GC merchants

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White labelled solution enables seamless customer acquisition

UK Eurozone

Pre-populate from existing customer info: • First Name • Last Name • Email

New info: • Account Number • Sort code

Pre-populate from existing customer info: • First Name • Last Name • Email

New info: • IBAN

Mock-up of payment page

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Outsourced Banking Operations and Payment Processing through our API

Tier one banking relationships

GoCardless have relationships with RBS (BACS) and Barclays (SEPA), which we manage to process payments in the UK and Eurozone. Our dedicated team handles risk and ensures business continuity.

Automated payment submissions

GoCardless submits mandates and payments directly to the schemes, removing lengthy processes of file submission and reconciliation on your behalf.

Inherent payments compliance

We handle all regulatory updates to comply with scheme rules.

For example, we managed the switch to a SHA-2 SSL certificate for BACS and are currently decommissioning SEPA COR1 - both on behalf of merchants.

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Thanks