Direct Debit in the UK
Direct Debit has been around for a lot longer than you might think. The first Direct Debit was set up in 1968 and now, nearly 50 years on, it's proving more popular than ever.
It's hardly surprising. Direct Debit brings certainty to businesses. Everyone knows when the money is coming in and it makes cash flows much easier to predict. If a customer misses a payment the company is automatically informed and there's no admin stress or cost in constantly chasing down cheques that are always 'in the post.'
Since its inception, BACS, the not-for-profit organisation behind Direct Debit in the UK, has processed more than 110 billion transactions and in 2015 the company broke several records.
On July 31st, a staggering 103 million payments were processed, that's 6.65 million payments an hour.
And those figures are not just one offs. Making regular payments by Direct Debit has become second nature for millions of consumers, with eight-out-of-ten adults in the UK having at least one Direct Debit and around 71 per cent of household bills paid this way.
Big businesses are also getting in on the act. In 2014, the Driver and Vehicle Licensing Agency’s (DVLA) launched Direct Debit as a payment method for vehicle tax. So far, around eight million motorists have taken up the option to pay monthly.