I've always liked the idea of GoCardless, and we've been seriously considering implementing it on an upcoming service, but our main concern has always been that clients will be far less likely to want to set up a direct debit than they will do a one-off payment on a card.
People are really used to buying stuff with a card online, but a direct debit? Not so much. Does anyone have any figures on how GoCardless affects conversion rates?
(I'm aware that it would always be possible to have GoCardless as an option, but that would have its own impact on conversion rates).
I think if you're talking about one-off, it's a fair point. With regular payments, UK consumers are much more comfortable setting up direct debits. Just under 80% of UK adults currently have at least 1 active direct debit set up, for example.
Sure, most people have active direct debits set up, but isn't the number of those are set up solely through the internet somewhat smaller?
Furthermore, most people seem to associate direct debits with a certain class of business, usually utility companies. In my experience, it just isn't common for someone to set up and manage a direct debit online.
So yes, whilst one-off payments are significantly larger, I'd still be wary of a reduced conversion rate through GoCardless. Of course, if I had a very narrow margin, your incredible rates might easily redeem the difference in revenue, but without hard numbers it's difficult to make a business decision.
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I've always liked the idea of GoCardless, and we've been seriously considering implementing it on an upcoming service, but our main concern has always been that clients will be far less likely to want to set up a direct debit than they will do a one-off payment on a card.
People are really used to buying stuff with a card online, but a direct debit? Not so much. Does anyone have any figures on how GoCardless affects conversion rates?
(I'm aware that it would always be possible to have GoCardless as an option, but that would have its own impact on conversion rates).
I think if you're talking about one-off, it's a fair point. With regular payments, UK consumers are much more comfortable setting up direct debits. Just under 80% of UK adults currently have at least 1 active direct debit set up, for example.
Sure, most people have active direct debits set up, but isn't the number of those are set up solely through the internet somewhat smaller? Furthermore, most people seem to associate direct debits with a certain class of business, usually utility companies. In my experience, it just isn't common for someone to set up and manage a direct debit online.
So yes, whilst one-off payments are significantly larger, I'd still be wary of a reduced conversion rate through GoCardless. Of course, if I had a very narrow margin, your incredible rates might easily redeem the difference in revenue, but without hard numbers it's difficult to make a business decision.