GoCardless launches new open banking features in Germany, amid projected rising adoption rates

By John Reynolds on Tuesday 21 June 2022

Digital Banking

The London-based payment firm is launching its one-of-payments offering, Instant Bank Pay, and an anti-fraud feature, Verified Mandates, in Germany.

GoCardless launches new open banking features in Germany, amid projected rising adoption rates
Image source: GoCardless.

GoCardless is launching two open banking features in Germany, its one-of-payments offering and an anti-fraud feature, amid the projected rising adoption of open banking in Europe.

Instant Bank Pay, which is already available in the UK, allows merchants to handle one-off bank-to-bank payments.

For GoCardless merchants who use its direct debit service, Instant Bank Pay offers them an alternative to handling single non-recurring payments.

The payments fintech said its research showed that in Germany 88 per cent of merchants with recurring revenues needed to collect extra one-off payments.

GoCardless pointed to examples like purchasing extra goods or services or topping up an account outside of a customer’s regular payment schedule. It says by using Instant Bank Pay, merchants in Germany will be able to future-proof their businesses.

Secondly, it is also rolling out Verified Mandates, an anti-fraud feature, which has already been launched in the UK, that combines open banking with direct debit. The fintech says the tool can stop payment fraud before it happens.

Verified Mandates uses open banking to automatically and instantly verify customer information as part of the flow of setting up a new direct debit mandate, thereby reducing payment fraud, GoCardless said.

Open banking is relatively new in Germany, with slow consumer adoption, but GoCardless expects this number to grow amid projections that Europe will have 64m active users of open banking by 2024.

Alexandra Chiaramonti, general manager of Continental Europe at GoCardless, said: “Open banking is growing rapidly, with 64m active users projected in Europe by 2024. With the launch of Instant Bank Pay and Verified Mandates, we’re enabling German merchants to get ahead of the curve."

“We’re excited to offer this new technology to help them tackle a range of challenges, from high card fees to payment fraud, while at the same time offering consumers a preferred, more secure, and seamless way to pay.”

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