With the integration, FreeAgent users can now combine one-off payments through Instant Bank Pay with the existing recurring Direct Debit functionality, providing a more streamlined approach to collecting payments across different billing scenarios.
Instant Bank Pay leverages Open Banking technology for direct bank-to-bank payments. It allows businesses to collect funds without requiring customers to manually input their bank details, potentially reducing payment delays and minimizing follow-up efforts. This feature is particularly useful for handling higher-value one-time invoices that would otherwise incur card transaction fees.
Minimizing Payment Failure and Delay
Success+, now available on FreeAgent, uses machine learning to optimize the timing of payment retries after a failure. According to GoCardless reports, this tool typically recovers about two-thirds of failed transactions. It is designed to help businesses reduce involuntary churn and lessen time spent chasing payments manually.
FreeAgent officials noted that this integration is the platform’s first use of an Open Banking-based solution for accounts receivable. They say these tools address long-standing challenges faced by small businesses, such as payment failure costs and one-off invoice collection friction.
GoCardless representatives stated that the expanded integration will offer a wide range of small businesses and accounting professionals cost-effective alternatives to card payments while improving revenue collection reliability.
FreeAgent, a subsidiary of NatWest Group since 2018, operates independently and focuses on accounting tools for small businesses, freelancers, and accountants. GoCardless, headquartered in the UK with operations in over 30 countries, processes more than USD 130 billion in payments annually across both recurring and one-time transactions.
