According to the press release, the GoCardless Payment Success Index analyses payment data from over 55,000 customers and 900 external businesses to benchmark and compare payment success. Besides, it highlights the savings businesses can make by adopting payments intelligence.
With the number of failed payments increasing each year, businesses that do not retry failed payments or use manual, labour-intensive methods to collect them, will continue to see a negative impact on cash flow. Accordingly, GoCardless revealed that businesses are spending thousands of pounds to recover failed payments, costing financial services (GBP 140,400), IT (GBP 136,800), business services (GBP 103,200), health and wellbeing (GBP 86,400), and utilities (GBP 85,200).
Moreover, the report highlights that failure rates vary across different payment methods, showing insights such as:
A business that primarily collects payments with digital wallets has the highest average failure rate at 12%.
Payments collected by credit/debit cards have a failure rate of 8.2%, representing 2.9 times more failures than a GoCardless merchant, with greater failure rates being seen within B2C than B2B.
The average instalments business will also lose more than eight times more revenue in uncollected payments than the average subscription business. However, SaaS companies are not immune.
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