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Crowdz selects GoCardless for open banking payment solutions in four markets
Crowdz will incorporate three GoCardless payment features powered by open banking to improve its payment and risk modelling capabilities.
LONDON, 18 October 2022 — GoCardless, a global leader in direct bank payments, has signed Crowdz, the small and mid-sized enterprise (SME) finance platform, as its latest customer as the company looks to integrate open banking to enhance its ability to drive equitable access to finance for small businesses.
Crowdz, which secured $10 million in investment earlier this year led by Citi and Global Cleantech Capital, will incorporate three GoCardless payment features powered by open banking to improve its payment and risk modelling capabilities. It will use:
- Instant Bank Pay in the UK, USA and Europe to collect instant, one-off payments directly from a bank account, offering more payment options for both funders and sellers, plus a frictionless customer experience
- Verified Mandates in the UK, USA and Europe for even greater fraud protection, providing more certainty and increasing confidence in the process
- GoCardless’ PayTo integration in Australia for instant payments and account verification
Payson E. Johnston, CEO and co-founder of Crowdz, said: “We’re proud to have provided over $80 million in working capital to SMEs, but this is just the start. With our global expansion plans and our target of providing 25,000 SMEs with over $1 billion in working capital by the end of 2023, we needed a partner that could offer the right coverage, technology and expertise. That’s where GoCardless comes in.
Duncan Barrigan, Chief Product Officer and Chief Growth Officer at GoCardless, said: “We’re excited to see our open banking features powering a true disruptor like Crowdz. Thanks to our global bank payment network, we’ll be able to accelerate their speed-to-market and offer cutting-edge payment solutions, making it that much easier for SMEs to gain access to working capital all over the world.”
Crowdz offers an alternative financing solution for SMEs who often struggle to access capital via banks and lenders. Its proprietary risk assessment model, the SuRF score, enables more equitable financing than a traditional credit score through data. Crowdz’s platform leverages blockchain technology for secure, transparent transactions.
To date, Crowdz has closed key deals, including providing the tech behind a Meta (formerly Facebook) SME financing program, which has already provided diverse, minority-owned SMEs with more than USD $70 million in capital.
Crowdz represents the latest open banking customer to sign with GoCardless following the fintech’s entry into the space with the launch of its first open banking-powered feature, Instant Bank Pay, in 2021. This year GoCardless raised its Series G funding round to accelerate its open banking strategy and announced the acquisition of Nordigen, the freemium open banking data provider, to combine broad open banking connectivity with bank payment expertise. Last month GoCardless introduced Verified Mandates — which leverages AIS technology to prevent fraud — in France.
Crowdz is modernizing invoice financing and invoicing practices, particularly for small and midsize businesses, to revolutionize the $9 trillion worldwide receivables market.
The platform offers an alternative financing solution for small businesses that often struggle to obtain traditional bank financing. Its technology enables small businesses to sell invoices to funders for financing, reducing cash flow bottlenecks and giving small businesses working capital to survive and thrive.
Crowdz is headed by its co-founder and CEO, Payson E. Johnston, who served for 18 years as global B2B supply-chain Senior Manager for Cisco. Crowdz has raised $25.5 million in equity from investors including Citi, Bold Capital Partners, Barclays Bank, EGX, Augment Ventures, Global Cleantech Capital, Kx, TFX Capital, and Techstars Ventures. Crowdz’s technologies are covered by three patents and multiple pending patents.
GoCardless is a global leader in direct bank payment solutions, making it easy to collect recurring and one-off payments directly from customers’ bank accounts through direct debit and open banking. The GoCardless global bank payment network and technology platform take the pain out of getting paid for 75,000 businesses worldwide, from multinational corporations to small businesses. Each year GoCardless processes more than US$30 billion of payments across more than 30 countries. GoCardless is headquartered in the UK, with additional offices in Australia, France and the United States. For more information, please visit www.gocardless.com and follow us on Twitter @GoCardless.
© 2022 GoCardless Ltd. All Rights Reserved. GoCardless is a registered trademark of GoCardless Ltd in multiple countries. Third party trademarks mentioned above are owned by their respective companies. Unless explicitly identified as such, nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of GoCardless Ltd. or any aspect of this press release.