Business Direct Debit use overtakes cheque payments
November 15, 2013
Business transactions made via Direct Debit outstripped cheque payments for the first time in 2012, underpinning new research showing that SMEs overwhelmingly favour Direct Debit over alternative payment methods.
The new study comes from from Bacs Payment Schemes Ltd (Bacs), the company behind Direct Debit and Bacs Direct Credit in the UK, and offers an intriguing insight into how SMEs view paying and being paid for goods and services. Data from â€˜Understanding SMEs attitudes to payment methodsâ€™* shows 66 per cent of SMEs view Direct Debit as the preferred way of collecting money and ensuring it arrives on time.
The report also found that 60 per cent more SMEs are using Bacs Direct Credit than five years ago, while 55 per cent of SMEs expect their use of Bacs Direct Credit to increase as a means of making payments.
The news comes as the Payments Councilâ€™s 2013 UK Payments Statistics Report shows that businesses made a staggering 384 million Direct Debit payments last year, 21 million more transactions than by cheque, and an increase of 27 million Direct Debit payments compared to 2011.
The 'Understanding SMEs attitudes to payment methods' reports can be downloaded from from the Bacs website - www.bacs.co.uk/Bacs/Businesses/Resources/Pages/Publications.aspx
NOTES TO EDITORS
About Eazipay Ltd
- Established in 2002 by local entrepreneurs Kathy and Ron Bradney, and their colleague, Luisa Grey, Eazipay Ltd has become one of the UKâ€™s fastest growing Direct Debit processing companies.
- Eazipay now provides regular Direct Debit services to over 1,000 companies in a wide range of market sectors throughout the UK, Europe and beyond.
- In August 2013, Eazipay recorded its best ever month for Direct Debit collections when Â£28.1million worth of Direct Debits were processed on behalf of its clients.
- Eazipay was awarded â€˜Affiliateâ€™ status from Bacs, the governing body for Direct Debit processing in the UK payments industry. The company is now a member of an exclusive group of 38 other Bacs Affiliates, which includes representatives from some of the UKâ€™s leading businesses, banks and building societies, as well as government organisations and banking technology providers.
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