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00:05 Hello.
00:05 Hello everyone.
00:06 My name is Gosia, I'm a cofounder of Fena
00:09 and today I'm going to talk about
00:13 an interesting subject for quite a few sellers
00:17 that sell subscription products or sell membership products
00:22 So I'm going to talk about recurring payments.
00:25 So what are recurring payments?
00:28 So effectively recurring payments are types of payments that repeat
00:33 on a regular basis and those could be a
00:37 subscription for payments for goods or services.
00:41 It could be membership fees, it could be some sort
00:45 of annual fees for a certain products or services.
00:51 In some cases, if you have regular billing of some sort,
00:55 for example, it could be a mobile bill or similar.
00:59T hey usually are the same amount being
01:04 taken from your bank account every month.
01:07 So those are recurring payments, payments that are taken
01:11 from your bank account on an ongoing basis.
01:14 So open banking in this current form offers one
01:20 type of recurring payments and those are standing orders.
01:23 And standing orders are effectively a mandate that you, as
01:29 the owner of the bank account you give to your
01:33 bank for them to execute on your behalf.
01:36 So for instance, you can tell your bank please
01:39 do set up a standing order for an amount
01:42 of ten pounds that will be collected every month
01:45 on the 10th day of every month.
01:48 And that standing order will go
01:51 to a specific bank account.
01:53 For example, you might be a member of a
01:56 certain group and to be a part of that
01:58 group you pay the ten pounds per month.
02:02 And how you can actually, as a seller or
02:06 as a business take advantage of those recurring payments.
02:10 Build on Open Banking so first and foremost
02:14you can add recurring payments to your checkout.
02:18 For instance, if you sell subscription services you can
02:21 add it to your checkout and you allow people
02:24 to set up repeated payments using open banking.
02:28 If you're a gym, for instance, and you
02:30 need to collect a gym membership every month,
02:33 every week, every quarter, whichever way you billing
02:35 your customers, you can do that as well.
02:38 And you can set up a special payment link for people
02:41 to complete and then on the given day, the money will
02:45 be taken from the bank account and deposited onto your ban
02:48 account as a standing order.
02:57 Why would you want to look into recurring payments built
03:01 at an open banking as an option for you?
03:05 I think the main reason why would
03:07 that be is because of the cost.
03:11 Subscription payments offered by either direct debit or
03:15 card on file are really actually expensive.
03:20 They often come with some sort of minimum fees or
03:24 fees that are equivalent of 3% of the transaction value.
03:30 And if your subscription has not much of a
03:35 margin or you are cost conscious, you might want
03:44 to look into open banking recurring payments.
03:49 It's quite easy for people to
03:51 set up those recurring payments
03:54 Also it avoids quite a lot of errors.
03:58 So I give you an example.
04:00 We have a customer, they use direct debits.
04:03 But how they collect information for direct debits.
04:06 They literally ask people to fill in their sort code
04:09 account number on the form, on the web form.
04:13 Often it happens that people misspell the sort code
04:19 or misspell account number and the payment fails.
04:23 And this is not great for the merchant
04:26 because there's a lot of admin costs attached
04:28 to it of chasing those payments.
04:31 With open banking, what happens is you tell us please
04:37 collect let's say 20 pounds on the 10th of each
04:42 month from this basically deposited onto this bank account.
04:48 And we as a provider of open
04:51 banking payments will generate a link.
04:53 That link can be sent to your
04:55 customer, can be embedded onto your checkout.
04:59 And when the customer gets confirmation, they see I'm
05:03 going to pay this amount of money every month
05:06 on this day to this bank account.
05:09 And then they select which bank
05:12 account they want to pay from.
05:14 So for instance, I've got a list here,
05:16 I've got a little image helper here.
05:19 You can see they can select various banks.
05:21 For example, they select Santander.
05:23 They are now taken to the Santander banking app.
05:28 They confirm this payment on Santander, the banking app.
05:32 They get a confirmation of that payment and we
05:36 get redirected and successful setup of standing order.
05:40 And you know that in that case that
05:42 that standing order has been set up.
05:44 You know that the account details are correct and
05:46 you know that on this day that amount of
05:48 money will be taken from your customer bank account
05:52 and deposited onto your bank account.
05:55 So that's kind of the main thing you might ask,
05:58 okay, is a sending order, how do I know that
06:02 I will receive those payments on a regular basis as
06:05 per request I send to my customer?
06:09 What we do, we allow you to connect your bank account
06:14 that you receive those money onto using our data APIs.
06:20 And we monitor the transaction and we match the
06:24 reference number of that standing order with the reference
06:28 of the bank transfer that arrives onto your transaction
06:31 that appears onto your bank statement.
06:34 And by matching those we confirm that you
06:36 actually receive that payment onto your bank account.
06:40 If the payment for some reason is
06:42 missed or cancel will alert you.
06:46 So then you can either stop the service to your
06:49 customer or you can chase your customer for payment.
06:54 I think that's kind of the main overview of
06:57 recurring payments on open banking when it comes to
07:01 type of customers or type of businesses.
07:05 Let's say type of businesses, as these recurring payments built
07:09 on open banking could be a good fit for, I
07:13 would think, any businesses that have a set subscription and
07:16i t's collected within a given period of time.
07:20 So like gym membership, perfect business to use.
07:26 Recurring payments on open banking could
07:30 be magazine subscription as well.
07:34 It could be membership fee, private
07:37 members club fees, golf fees.
07:43 For example, if you're a member of any golf club
07:45 as well and if you have a subscription as well
07:49 for some sort of goods that you sell online. As well.
07:52 That could be an interesting so if you know
07:55 that every month you sell a bottle of, I
07:58 don't know, a serum for anti wrinkling serum or
08:02 similar, you can sell that as a subscription and
08:06 you can use open banking and recurring payments to
08:08 collect payments for that specific subscription.
08:13 I think that's kind of a good
08:14 summary of what recurring payments or repeated
08:17 payments built on open banking are.
08:19 If you're interested in demo of that
08:22 specific feature, please do email support@fena.co.
08:26 You can also reach me on
08:28 LinkedIn under Gosia Furmanik at Fena.
08:31 I'm there.
08:33 I'm looking forward to hearing back from you.
08:34 Also, as always, you can leave
08:36 comments in the comment section. Please.
08:39 Thumbs up and I'll see you soon.
Article by
Gosia Furmanik
CEO and Founder
Published on
