GoCardless, a global leader for account-to-account payments, and Wise (LON:Wise) the global technology company building the best way to move money around the world, have joined forces to create Aotearoa’s first multi-currency direct debit network.

Until now, Kiwi businesses could only collect recurring payments from overseas if they had a local bank account in that market or rely on expensive credit card transactions with hefty, hidden foreign exchange fees eating into their bottom line. 

By leveraging the global network and infrastructure Wise has built through Wise Platform, businesses will now be able to collect one-off or recurring payments from over 30 countries in 8 currencies (GBP, USD, EUR, SEK, DKK, CAD, AUD, and NZD) at the mid-market rate with no exchange rate markups or hidden fees.

“Both Wise and GoCardless were founded to solve a problem within finance — to make payments fairer, faster, and seamless,” says Wise NZ Country Manager, Tristan Dakin.

“More Kiwi businesses need to collect international payments, but could only do so if they had a local bank account in that market. This all changes thanks to Wise’s smart and transparent foreign exchange technology. We’re thrilled to help GoCardless with their vision to let businesses of any size collect payments from anywhere, to anywhere, in any currency without the hidden fees.”

A YouGov survey commissioned by Wise of 4835 micro, small and medium businesses across 11 countries including Australia and New Zealand, revealed that complexity in managing multiple currencies and a lack of understanding on the true costs associated in cross border payments, were the top deterrents for international expansion.

Only 26 per cent of Kiwi businesses could correctly identify that an international payment is made up of an exchange rate markup and an upfront fee. It is perhaps not surprising then to see expensive, non-transparent and old school payment methods 一 PayPal (51 per cent), bank transfers (62 per cent) and card payments (47 per cent) – as the top three methods being used by Kiwi businesses.

Over half (55 per cent) of Kiwi businesses surveyed with at least an interest in operating internationally, said that the cost and complexity of managing international payments scuttled their international expansion plans. This has prevented these otherwise interested Kiwi businesses from entering a new market (28 per cent), growing their customer base (18 per cent) and buying new inventory (13 per cent).

GoCardless Sales Director ANZ, Luke Fossett, explains that Kiwi businesses have global ambitions, but a legacy, fragmented, and inefficient payments system is holding them back.

“Our international payments network with Wise will overhaul a broken system,” he says.

“Businesses who don’t have the ability or resources to set up multiple bank accounts just to accept different currencies, many of which have hidden fees built into the exchange rates, can now access the first multi-currency direct debit network, built on trustworthy account-to-account payments, powered by the fairest foreign exchange rates available.”

This product, which is already live in markets including the UK, EU, and the US is expected to be well-received locally. Since launch, GoCardless has seen the volume of international payments across their global bank debit network increase by more than four times, demonstrating the pent-up demand to collect payments worldwide. 

GoCardless and Wise customer Re-Leased, an Auckland-based property management platform with clients in the UK, US, Canada and Australia who used the product in beta, could immediately see the impact of the new network.

For more information, visit gocardless.com