GoCardless has launched Verified Mandates in France as the firm continues global expansion.
Part of the GoCardless global ‘bank payment’ platform, Verified Mandates combines the Account Information Services (AIS) capabilities of open banking with bank debit to stop fraud before it happens.
This represents a new approach to tackling the age-old issue of payment fraud, whether it stems from identity fraud or “customers” that intentionally try to receive goods or services from merchants without paying for them.
The problem is particularly acute for recurring revenue businesses, with research indicating that 55% of French merchants on this model consider payment fraud a top threat — or even the primary threat — facing their business today. Despite this, over half of businesses (53%) say they still provide goods or services before confirming if a customer’s bank information is authentic and true.
Alexandra Chiaramonti, General Manager of Continental Europe, commented: “Payment fraud is a prevalent issue for merchants, but new technology means you can limit your exposure without reducing conversion or adding a ton of third parties to your supplier roster. Verified Mandates, which uses the power of open banking, allows you to authentic your payers as part of the payment set-up flow. This means you can protect your revenue without adding extra friction for your customers.”
The French launch follows the introduction of Verified Mandates in the US, UK and Germany. It also marks another milestone in GoCardless’ open banking strategy.