The funding round was co-led by Alphabet's venture arm GV and private equity firm Adams Street Partners. Existing investors Accel, Balderton Capital, Notion Capital and Passion Capital also contributed.
London-based GoCardless processes direct debit payments on behalf of businesses. These are recurring transactions withdrawn directly from a customer's bank account.
"We focus on what we think of as the recurring payments market — subscriptions, invoicing, installments — and each of those markets is super broken," Hiroki Takeuchi, co-founder and chief executive of GoCardless, told CNBC in an interview.
"Overall, we think these kinds of recurring payments make up about 18 percent of total payment volume globally. So it's quite a big chunk of all the payments that are going on around the world."
The firm's clients include newspapers like The Guardian and the Financial Times, as well as tech firms like Box and Sage. It says it now processes payments for more than 40,000 merchants, handling more than $10 billion worth of transactions every year.
GoCardless was set up in 2011 by Takeuchi and fellow entrepreneurs Tom Blomfield and Matt Robinson. Blomfield went on to create mobile bank Monzo, while Robinson left to start up digital estate agent Nested.