Sage adds GoCardless Pay by Bank to accounting software

Sage has added GoCardless Pay by Bank to Sage Business Cloud Accounting, extending the company's existing payments partnership in the UK and Ireland.

The addition brings instant open banking payments into Sage's accounting software alongside the Direct Debit services GoCardless already provides through the platform. Small businesses using the software can now add a Pay by Bank option directly to invoices sent to customers.

This gives users a way to collect one-off payments outside recurring billing arrangements, including setup fees, extra services and account top-ups. Customers pay directly from one bank account to another rather than using card details.

The change is intended to reduce payment friction for smaller firms that rely on prompt invoice settlement to manage cash flow. It also aims to cut back-office work tied to payment reconciliation.

Once an invoice is paid, the payment status syncs back to the Sage dashboard and automatically reconciles the open balance. This removes the need for finance staff to match payments manually against records or bank statements.

Lower costs

GoCardless said bypassing card networks can reduce single-transaction costs by an average of 54%. It added that account-to-account payments can help businesses avoid failed transactions caused by expired or lost cards.

The expanded partnership builds on a relationship that has been in place for several years. Sage users in the UK and Ireland already had access to GoCardless Direct Debit functions for recurring payments, and the latest integration adds an option for immediate one-off collections.

The rollout reflects wider interest among software providers and payment companies in embedding open banking tools into accounting and finance systems. For smaller businesses, invoice collection and reconciliation remain time-consuming tasks, especially when payments do not follow regular schedules.

Tom Metcalfe, Director, Global Partnerships at GoCardless, said the new feature reflects the companies' shared focus.

"Sage is a long-standing partner and their launch of Pay by Bank underscores our shared commitment to helping businesses thrive. For small businesses managing tight margins, high credit card fees and delayed payments are a massive burden on resources. This expanded partnership solves that pain point directly by combining automated recurring collections and instant open banking payments, allowing teams to protect their cash flow and keep card costs down," said Tom Metcalfe, Director, Global Partnerships at GoCardless.

Sage said the integration links invoice creation more closely with bookkeeping by updating payment records as transactions are completed. It described the change as a way to reduce administrative work for businesses that may not have dedicated finance teams.

"For small businesses, every hour spent on admin is time taken away from serving customers and growing the business. By bringing Pay by Bank natively into Sage Business Cloud Accounting, we're closing the loop between invoice creation and real-time bookkeeping. It means payments can be reconciled automatically, reducing manual work and giving businesses a clearer view of their cash flow," Paul Fairless, Fintech Partner Strategy and Business Development Director at Sage, said.

GoCardless says more than 100,000 businesses use its bank payment services, and it processes more than USD $130 billion in payments annually across more than 30 countries. Its open banking network connects to more than 2,500 banks.

For Sage, the agreement adds another payment option to a product range focused on small and mid-sized businesses managing accounting, payroll and finance workflows in one system. For users, the practical change is that invoices can now include a bank payment button that automatically feeds payment confirmation and reconciliation back into the accounting record.