By Oliver Smith on Thursday 15 October 2020
Get paid on time, every time.
Business banking service Tide will let tens of thousands of its SME businesses offer direct debit payments to their customers for the first time.
The launch is powered by specialist direct debit fintech GoCardless, and means from today businesses using Tide can establish a direct debit mandate with their customers and set up regular recurring payments.
“Being able to set up Direct Debit payments for invoices will be game changing for our members, making the payment process quicker and smoother for both the small business owner and customer,” said Tide CEO Oliver Prill.
On Tide’s side, Prill says direct debits are a huge boost for helping SMEs to get paid on time, with 60 per cent of his customers regularly reporting late payments.
Direct debits on the other hand appear to solve this problem for many types of payment by automating the process, according to GoCardless research these payments are up to 47 per cent faster on average.
For GoCardless the partnership is also a win, as businesses will be able to set up direct debits using their service from their existing banking app, without having to sign up to GoCardless separately.
“Tide members will now be able to automate both the invoicing and payment process, putting them in control of their payments and improving cash flow. We believe that this partnership will help small businesses thrive,” said GoCardless CEO and co-founder Hiroki Takeuchi.