Pennylane adds GoCardless to its B2B marketplace offering

London-based FinTech GoCardless, which specializes in the dematerialization and simplification of recurring payments by direct debit, has announced its new partnership with French FinTech: Pennylane. The pioneer of digital accounting solutions is taking another step towards its goal of becoming a marketplace for B2B financial services.

FACTS

• The new partnership between GoCardless and Pennylane will allow small businesses to automate their invoicing, accounting and payments.

• The target: Pennylane's SME, VSE and start-up customers.

• The two specialized FinTechs are committed to managing and collecting their customers' recurring payments in an automated way.

• How do they do this? By linking Pennylane's new subscription management function (allowing companies to automate accounting and the creation of recurring invoices) to GoCardless' global direct debit network.

KEY FIGURES

• The first joint solution customers who were able to test the GoCardless and Pennylane joint solution reduced their late payments by 25 times.
• Companies using GoCardless are paid 47% faster on average, according to the London-based FinTech.

CHALLENGES

• A step closer to accounting automation: The combination of GoCardless and Pennylane's services holds the promise of full automation of the billing and bookkeeping process.

• Enriching an existing partnership: In October 2020, the two FinTechs already partnered to foster an API connection to automate direct debits and payments from GoCardless to Pennylane's accounting tool. The announcement of their new combination therefore represents a strategic consolidation.

MARKET PERSPECTIVE

• GoCardless, Swan, Qonto, Fintecture. The list of partnerships with Pennylane is growing. The concentration of services continues and the partnerships signed between FinTechs complete the concept of complete marketplaces combining financial and extra-financial services.

• This objective is at the heart of the strategy that Pennylane FinTech set for itself at the beginning of the year.