GoCardless receives $1.5 million of first round funding

First round funding

GoCardless, an East London start-up online payment platform has received $1.5 million in initial funding led by Accel Partners, Passion Capital and YCombinator. The capital will go towards building the company’s team and product as well as expanding its merchant base. GoCardless is tapping into the £100bn a year UK online sales industry by developing a REST API that enables merchants to integrate with their platform and start taking online payments via Direct Debit without the need for a Merchant account. By avoiding the network, the GoCardless service operates for around a quarter of the cost of most network-based payment options, the company claims. Importantly for recurring payments, the money is withdrawn directly from the consumer’s account removing credit card expiration issues and reducing customer churn. Consumers can authorise payments with a click after the initial sign-up and the service also features a dashboard which can be used to manage payments and control online spending. GoCardless is currently integrated with around 300 merchants.

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