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 it is proving a more popular way of paying for goods and services than at any time previously.
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 you are automatically informed. There's no admin, stress or cost in constantly chasing down cheques that are always 'in the post.'
Making regular payments by Direct Debit has become second nature for millions of us, with nine-out-of-ten adults in the UK having at least one Direct Debit and around 71 per cent of household bills paid this way.
If large, complex organisations recognise a business benefit to collecting payments by Direct Debit, why not grasp the same opportunity for your own business. For example, the Driver and Vehicle Licensing Agency (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.