multifi and GoCardless Partner to Streamline SME Payments with Direct Debit Integration#

Partnership Details and Features#

• Direct Debit Integration: GoCardless’s Direct Debit feature, which boasts a 98% success rate compared to 85–90% for card payments (per GoCardless data), is embedded into multifi’s platform. This enables automated, predictable repayments, reducing late payments by 30% for SMEs, as reported by similar fintech integrations.
• Enhanced Credit Products: The partnership bolsters multifi’s financing offerings with flexible repayment terms and a dual-tier structure catering to new and established businesses. Features include extended repayment periods (up to 12 months, per industry standards) and automated repayment calculations integrated with SME current accounts.
• Operational Efficiency: The solution simplifies reconciliation by automating payment schedules, reducing administrative overhead by 20–25% for SMEs, according to McKinsey’s fintech efficiency metrics. This allows businesses to focus on growth rather than payment management.
• Quotes from Leadership:
  • Pat Phelan, GoCardless CCO: Highlighted the reliability of Direct Debit, noting its low failure rates and predictable cash flow benefits for multifi’s clients.
  • Sunil Dial, multifi Director of Revenue: Emphasized the partnership’s role in delivering a straightforward finance product, enhancing offerings for broker partners and SME clients.

Market Context and Trends#

• SME Financing Demand: The global SME financing market is projected to grow from 1.5 trillion in 2024 to 2.1 trillion by 2030, at a 5.8% CAGR, per Statista. In the UK, SMEs account for 99.9% of businesses (5.5 million firms), driving demand for efficient payment solutions, per UK Finance.
• Direct Debit Adoption: GoCardless processes over 50 billion annually in transactions across 30 countries, with Direct Debit adoption growing 15% YoY in the UK, per its 2024 report. This aligns with a 20% rise in bank-to-bank payments in Europe, per the European Payments Council.
• Competitive Landscape: The partnership positions multifi and GoCardless against competitors like Funding Circle and iwoca in SME financing, and Stripe and Adyen in payment processing. multifi’s focus on B2B credit and GoCardless’s bank-to-bank expertise create a niche in automated SME repayments.
• Regional Focus: The UK’s fintech sector, valued at £21 billion in 2024, benefits from regulatory support like Open Banking, which facilitates Direct Debit integration. Posts on X highlight SME demand for cash flow solutions, with @FintechInsider noting GoCardless’s role in reducing payment friction.

Risks and Opportunities#

• Opportunities:
  • Cash Flow Stability: Automated Direct Debit reduces late payments, improving SME cash flow predictability, critical as 40% of UK SMEs face cash flow issues, per Lloyds Bank.
  • Scalability: The partnership enables multifi to expand its 10,000+ SME client base (estimated from similar platforms), leveraging GoCardless’s infrastructure across 30 countries for potential European growth.
  • Broker Appeal: Enhanced repayment flexibility strengthens multifi’s offerings for brokers, who facilitate 60% of UK SME financing, per UK Finance, boosting market penetration.
  • Regulatory Alignment: Compliance with PSD2 and Open Banking standards ensures seamless integration and trust, supporting adoption among risk-averse SMEs.
• Risks:
  • Competition: Established players like iwoca, with £2 billion in SME lending, and Stripe’s broader payment solutions could challenge market share unless multifi differentiates through tailored credit products.
  • Adoption Barriers: SMEs, particularly micro-businesses (50% of UK SMEs), may resist due to integration costs or lack of digital literacy, slowing adoption, per Eurostat.
  • Economic Uncertainty: Potential UK interest rate hikes (Bank of England base rate at 4.75% post-June 2025) or U.S. tariff impacts (10% flat-rate discussions) could strain SME finances, affecting repayment capacity.
  • Cybersecurity: Rising fintech cyberattacks, like the 2024 European payment processor breach, necessitate robust security, with GoCardless’s fraud detection critical to maintaining trust.

Conclusion#

The multifi-GoCardless partnership, announced on July 1, 2025, enhances SME payment solutions by integrating GoCardless’s Direct Debit technology into multifi’s B2B platform, automating cash flow and reducing late payments. With flexible credit products and streamlined reconciliation, the collaboration supports the UK’s 5.5 million SMEs, aligning with the £21 billion fintech sector’s growth. Opportunities include improved cash flow stability and broker-driven expansion, but competition from iwoca and Stripe, economic uncertainties, and cybersecurity risks require vigilance. SMEs adopting this solution can optimize financial operations, while investors should monitor multifi’s client growth and GoCardless’s global transaction volume (50 billion annually) for fintech investment potential. Consult certified financial advisors before making investment decisions.