The figures are in! In 2017 alone, Brits have sent over £1.3 trillion through Direct Debit transactions. You read that right – that’s nearly 4% growth on the previous year.
9 out of 10 adults in the UK have at least one Direct Debit and a whopping 74% of all payments made by volume take place as a Direct Debit transaction!
Let’s look more into why Direct Debit has established itself as the preferred method for the UK to send recurring payments.
It’s easy and fast…
And convenient! In fact, it takes away the one most annoying features of recurring payments – maintenance. With mortgages, car insurance, loans and subscriptions coming out our ears, keeping track is a nightmare. Payments are managed by companies, rather than individuals. This way the customer can have a breather and the service provider can be sure that they’re not missing out on late or cancelled payments.
One of the safest payment methods there is, in fact. Direct Debits are bound to the Direct Debit Guarantee, a safety net that ensures no changes can be made without prior knowledge and a swift refund is issued in the event of an error. Direct Debits can also be cancelled at any time. There is so much governance around Dirct Debits that it’s highly uncommon for things to go awry.
For retailers and consumers alike. From a business perspective, time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Direct Debit is automated so very little admin is required. Add that to the fact that it’s a much cheaper alternative than cash, cheque or card and this usually translates to discounts for customer’s who sign up on a Direct Debit.
Unlike other methods of payment, Direct Debit allows for full flexibility with payment dates and amount, without the need to make your customers submit a brand new mandate (this is not the case with standing order). Payments can be aligned to the peaks and troughs of business – if your rate changes, or your organisation is due to close for a refurb, payments can easily be amended. Direct Debits can even be used to make one-off payments.
Why choose DFC for your revenue management solutions?
We have years of experience behind us – our mission is to help you improve and grow your business and improve your relationship with your customers.