With this expanded partnership, the two players aim to help companies across more than 30 countries – including the US, UK, Europe, Australia, New Zealand, and Canada – to process recurring payments faster and reduce payment-related costs and customer churn.
Over the past eight years, subscription revenue has grown up to eight times faster than the sales revenue of the S&P 500, according to Zuora’s Subscription Economy Index. As consumers increasingly demand access to digital services, the GoCardless Global Payment Preferences report found that the use of bank debit to pay for online subscriptions is growing as an alternative to legacy payment methods like wire transfers, paper checks, and credit cards.
Companies that prioritise pull-based payment methods can avoid the high transaction costs and hidden fees associated with legacy payment methods, both locally and globally, as well as the costs associated with chasing late and failed payments, which ultimately leads to involuntary churn and lost revenue. Additionally, companies can access 44% more markets by offering bank debit as a collections gateway.
To address the need for higher acceptance rates for recurring payments around the world, GoCardless and Zuora engineered a solution optimised for the digital Subscription Economy and recurring payments. The automation within the GoCardless recurring payment solution combined with Zuora’s billing platform equips subscription businesses in their monetisation plans as they launch, bill, and iterate new subscription offerings.
