GF Money: How to make payments easier

GF Money is a fintech group with headquarters in Finland and active on several markets. The Swedish subsidiary started in 2007 and was acquired by GF Money in 2017. Their business idea is in Sweden is to act like a credit card online, without the actual card. It allows their client to make use of their credit limit in an easy, modern way.

By being in the forefront of modern technology, adapting open banking way back in 2014, GF Money strives to get an upper hand on the market. However, when it comes to user paying their credit installment, they haven’t been as modern; until now.

3 key takeaways

David Öhlund, GF Money

“We wanted to avoid the inelegance of a direct debit and make the payments easier. It just didn’t rime well with the year 2022.”

– David Öhlund, GF Money

How did you handle payments before?

Most of the down payment are made with direct debit on a recurring basis (Swedish Autogiro), but for those wanting to settle their debt or pay off a larger amount, direct debit (Swedish Bankgiro) has been the only option.

What was the challenges you faced?

Direct debit is a cumbersome and awkward process, where the user is required to login to their bank and copy and paste or manually enter the payment details. Attempts had been made to make it easier for users to copy and paste the payments details, but with 80% of users on mobile devices, it just was not enough.

Paying down on customers’ debt is of utmost importance for GF Money and its customers. When debt is paid back GF Money can use that to expand and offer more to its customers. By making it easier to pay, more people are likely to do so and the payment flows will increase and customers’ debt would decrease.

Why did you select Direct payments?

 

Other types of payments methods were investigated before deciding to go with Direct payments. Swedish mobile payments system, Swish, was one of them, but it lacked important functionality and added tedious extra administrative work. Also, a major turnoff was the user experience.

“Direct payments are easier to use than Swish. Swish requires a phone number, entering the Swish app and making a full callback. It takes more time.”

The team at GF Money also evaluated card payments as an option. However, the fees on card payments are considered too high and creates issues on the receiving end. When the customer pays 1000 SEK on their debt, only 990 SEK are received, creating an unbalance and opens for misunderstandings. On top of that GF Money experience issues with cards being lost, stolen, or simply outdated.

“After the customer made their first Direct payments, the following payments are just click-click, then it’s all done.”

Direct debit via Bankgiro is still an option for those clients who might prefer that way. However, that’s not something David Öhlund at GF Money sees as a long term option.

“In the future, no one will choose the traditional way.”

Additional integrations are coming up soon where customers will be able to settle debts or make payments through a link sent in SMS. It doesn’t end there, though. With the flexibility of initiating a payment with just a link, it could expand beyond text messaging.

“We can send the payment link anywhere we want and be where the client wants to be.”

Why did you choose Finshark as partner?

In an ocean full of open banking fish, GF Money selected Finshark as their Direct payment provider. This even though they have established another open banking partnership already.

“We selected Finshark because they were quickest on their feet. And we gained confidence for them immediately.”

The implementation itself was made by the technicians at GF Money, who found it to be simple, yet flexible. The questions and uncertainty that arose during the project was handled through a direct channel in Slack with Finshark’s developers.

”The implementation is uncomplicated, and the documentation is more than adequate. We didn’t feel the need for any other instructions.”

The future

Additional integrations are coming up soon where customers will be able to settle debts or make payments through a link sent in SMS. It doesn’t end there, though. With the flexibility of initiating a payment with just a link, it could expand beyond text messaging.

“We can send the payment link anywhere we want and be where the client wants to be.”

Maria Milutinovic
Maria MilutinovicCustomer Success Manager, Finshark

Working with David and his tech team at GF Money was a delight. Integrating a service in to their core business is obviously an important and delicate intervention. We’re confident in our tools and documentation, but working with a forward leaning and curious counter-part is educating and fun, also for us!

Thanks David and team! Looking forward to when we release our next project, bringing you further in to the future of usability and customer centric payments.

– Maria Milutinovic


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