Interview: Yorkshire Payments founder on helping SMEs when big banks won’t

Founded in 2011, the region’s only independent card payments provider, Yorkshire Payments, is now firmly established as a lifeline for SMEs that the major banks refuse to help.

Based in Thornhill Brigg Mills in Brighouse, the innovative company provides card processing services for sole traders, SMEs and large companies, as well as e-commerce and Virtual debit and credit card processing facilities.

Yorkshire Payments is also one of only three businesses in northern England to have gained independent status from Visa.

Most recently, Bdaily has recognized that Yorkshire Payments has secured an array of major contracts with the likes of luxury British clothing brand, Paul Costelloe Man, and AIB Merchant Services (the Irish Acquirer). Therefore, as well as showcasing the success of a local company, we wanted to sit down with the man behind the business, 30-year-old founder and CEO, James Howard.

James, at 30-years-old, you have achieved great success with Yorkshire Payments, which is Yorkshire’s only independent payments provider. Can you discuss how you initially founded the company in 2011?

“I started as a freelance broker and worked for the large corporate banks and larger London based independents for several years. I found that I was continually being let down by their poor service levels which inspired me to establish an independent offering with an honest Yorkshire approach. Starting as a one man band, I worked steadily to prove that good service equals good business.

“Direct Card Solutions Ltd was born after angel investment and subsequent good advice resulted in improved the branding to reflect the service we were offering. I then approached VISA, American Express and MasterCard regarding licensing, and after jumping through many hurdles, they granted a green light and Yorkshire Payments was born.”

Exactly what unique services does an independent card payments provider offer its customers?

“The local Yorkshire Payments service includes personal evaluation of customer needs, immediate resolution of technical issues and prompt assistance, all of which is radically different from a central banking approach.”

As the only company of this type in the region, and with very few in the country as a whole, how have you managed to stay competitive with much larger vendors and banks?

“Lower costs and a fair price for a fair service approach is a radically different approach to that of central bank services. Essentially we operate on lower margins and share the gains with the customer.”

Yorkshire Payments has garnered a reputation for its work with SMEs throughout the region, so what kinds of businesses do you find that Yorkshire Payments can help the most, i.e. retail, e-commerce, hospitality etc.?

“All businesses who prefer to deal locally and with individuals, rather than organisations can gain from the Yorkshire Payments approach. Yorkshire Payments is particularly good at working with those businesses the big banks reject.”

In recent months, Bdaily has covered Yorkshire Payments winning contracts with luxury British clothing brand, Paul Costelloe Man, and AIB Merchant Services (the Irish Acquirer). Although the two are completely different, the business’ presence spans much larger than our region, is working with larger firms something Yorkshire Payments will be looking to do more in the future?

“Yorkshire Payments is intending to focus on the Yorkshire region but many businesses based in Yorkshire have a global reach and we are happy to work with them and any others who hear of our reputation by referral. We are, however, mindful that a local service can only be delivered locally and that our unique selling point is dependent on knowing our region and our customers.”

Finally, what growth strategy are you going to implement to guarantee that Yorkshire Payments continues to grow year after year?

“The market in Yorkshire is more than big enough for Yorkshire Payments to achieve our five year plan and still have a very small market share. We believe that good representation and excellent service will succeed in spreading the message. The core competitiveness of our offer versus conventional routes will ensure the rest. Fundamentally it is very easy to sell superior service at a lower cost; we pass the message through PR and social media but the main communication route is via satisfied customers.”