Receipt Bank discontinues credit card
On 31 January, data capture app market leader Receipt Bank chose not to continue with its own branded credit card. Director of user adoption Ben Martin explains the reasons behind Receipt Bank's decision.
In the beginning of November 2019, cloud bookkeeping platform Receipt Bank partnered with Capital on Tap to release a credit card for small businesses. Not three months later, Receipt Bank announced that it would not be continuing its credit card from the 31 January.
According to the data capture app, the discontinuation follows customer feedback that users want “Receipt Bank to receive and process data from all credit card providers, not just one.”
Receipt Bank director of user adoption Ben Martin explained that “having a single UK branded card wasn't the right tack. We made the decision to halt the experiment on the credit card from the feedback. We felt that we were a strong enough company to know when we've got the answers that we need from running an experiment and then halt [it] to allow us to meet our partners and SMB users' future needs.”
Martin commented that Receipt Bank had conducted user research at the end of 2019 which confirmed that “whilst having the card was great for some partners, as a company, we needed to focus on global solutions.”
He also added that due to differing regulations around the credit card market, “the association with Capital on Tap was never going to fulfil that global ambition.” However, Martin stipulated that it “does not mean we’re pulling back at all in terms of payments area,” and hinted that there may soon be news from Receipt Bank on that front.
Following the platform’s recent news of achieving £55m in its Series C round of funding, Receipt Bank is planning a number of projects within the payments sphere, which have yet to be revealed.
Agnostic spending: the knowable elements
Following its research undertaken, the feedback “told us that we needed to be absolutely agnostic as to what bank account an SMB was using,” said Martin. “Having an own branded card was not necessarily achieving that.”
The fractured nature of the global market-space also meant that Australia, North America and the UK were subject to different regulations and, therefore, all required different versions of the card.
What subsequently became apparent, was that being ‘agnostic’ meant not needing to offer a card for customers to make payments, and “the association with capital On Tap and with Visa muddied the water a little bit there.” Martin added that Receipt Bank is “confident in its abilities that it can stop an experiment when needed”.
Martin revealed that Receipt Bank had recently been given a license under the Account Information Service Provider (AISP), meaning it is now one of the 80 official Open Banking service providers in the UK. According to Martin, it “was a huge step forward and meant that we didn't necessarily need to have the association with Capital on Tap and their integration purely with Xero. We could do it from any bank account.”
Martin explained that the license allowed Receipt Bank to “really develop [its] product suite in and around the payment and baking space” and to move from bank fetch areas into bank feeds through Open Banking. The AISP service enables the platform to digitally acquire and surface all bank information from any provider given by its partners and clients.
“We wanted to make sure that we can collect digital information about bank feeds anywhere.” And with Open Banking, Receipt Bank is able to link to any bank, allowing business customers an unrestricted choice of payment systems. The AISP also means that Receipt Bank no longer needs “to push or promote a single card issued by Visa that only integrates into Xero.”
“The move to embedding ourselves into the Open Banking infrastructure and ecosystem is going to allow us to have a full rollout of some quite exciting products,” said Martin.
Implications for cardholders
“We've heavily communicated to the cardholders that nothing changes,” said Martin. According to Receipt Bank, the only change for its card users is a new, blue and yellow Capital on Tap card in the post to replace their Receipt Bank branded cards.
Cardholders have been assured that every business has exactly the same functionality as before, and will still receive the existing benefits promised with the Receipt Bank branded card.