GoCardless Partners With Pipe To Introduce Embedded Finance Solution

GoCardless, a company handling payments across more than 30 countries, introduced an embedded finance solution with Pipe. Pipe is a fintech firm that provides financial services through software and payment partners.

According to the update, the integration lets eligible GoCardless merchants access capital financing within the platform. The company stated that this solution removes barriers linked to traditional loans, such as personal guarantees and credit checks, allowing small businesses to secure funds in a short period.

GoCardless And Pipe Launch Capital Solution To Support Small Businesses

The update revealed that the capital solution aims to solve a problem for small businesses in the United Kingdom, where many suffer from late payments. This delay creates cash flow difficulties, which affect business growth. GoCardless reported that over half of small businesses face such challenges.

Jolawn Victor, Chief Growth Officer at GoCardless, said cash flow remains important for businesses, and late payments create problems. The company has worked for years to help customers receive payments on time, and the new capital solution with Pipe allows them to offer quick financing within their platform.

The company said the solution would benefit micro-businesses and ethnic minority-owned enterprises, which often struggle with credit scores and business history. With small and medium-sized businesses playing a key role in employment, this financing could help sustain jobs and support economic growth.

GoCardless and Pipe tested the solution in a pilot programme, advancing over £13.3 million to hundreds of merchants. According to the update, businesses used the funds for equipment, service expansion, marketing, and hiring.

GoCardless Expands Financial Access Through Embedded Solutions

This new financing solution follows a trend where financial services are added to platforms that businesses already use. This helps businesses get financial support more easily.

Luke Voiles, Leader at Pipe, said small businesses find it hard to get capital because of complex steps and strict rules. He said the partnership with GoCardless lets businesses get funds inside a trusted platform, avoiding problems caused by banks.

GoCardless helps nearly 100,000 businesses by handling direct debit, real-time payments, and open banking. The company uses payment data to help businesses succeed and stop fraud. It works with many banks to give financial support.

Pipe created its financial tools to help businesses inside the platforms they already use. The company said this way, business owners can get funds without using other applications.

The partnership between GoCardless and Pipe aims to give businesses financial help where they work, closing gaps in access to capital.