The solution is aimed to help businesses worldwide in collecting funds in a market where 60% of B2B payments are still taken by paper cheques, according to Goldman Sachs. By using the ACH debit network on the GoCardless platform, merchants can pull payments directly from their customers’ bank accounts.
In addition, businesses using the GoCardless ACH debit solution will be able to use an automated collection system. This includes a range of information to help them manage and reconcile their payments including due dates, successful payments, and failed payments, along with the reasons why.
According to the press release, in 2018 – the fourth consecutive year in which the ACH Network added more than one billion new transactions – the system saw 23 billion transactions, of which 13.4 billion were debits. It is expected that by 2020, ACH will become the most widely used B2B payment method in the US as changing attitudes continue to sweep the nation: 80% of businesses in the US now prefer to receive their B2B payments via ACH debit, whilst 53% of consumers share the same payment preference for recurring bills, according to NACHA.
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