GoCardless launches new payment service to replace merchant accounts

The UK based venture founded by Tom Blomfield, Matt Robinson and Hiroki Takeuchi is backed by funding from Accel and Y-Combinator and had RBS as it’s sponsor.
The new service boasts a very fast application process and no need for a merchant account; no setup fees, no monthly charge and no hidden charges.
There is a charge of 1per cent of the transaction value with a maximum charge of £2 for each transaction. Funds are then transferred to your bank after a seven day holding period.
Duane Jackson, founder & CEO of Kashflow.com, came across GoCardless after looking for ways to help his merchants collect money from their customers.
Duane explains, “This is something truly special, unique and incredibly useful. I believe it’s the first time something like this has been available to UK SMEs.”
Previously, monthly billing was a lengthly process involving bank-transfers, cheques and hours of manual bank-account reconciliation. With GoCardless, Kashflow.com invoices now contain a link to allow people to pay online by bank transfer. Even better, payments are automatically reconciled against accounts, and merchants are instantly notified of failed payments & refunds.
KashFlow.com are one of the first to integrate the GoCardless service into their Accounting Software so customers can look to reduce their billing cycles. 
This small kid on the block could easily start to trouble payment giants like PayPal for SME clients.