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Use direct debiting for everything as most payments are recurring, repeat payments?

Most consumers and businesses are pretty boring, they make the same purchases from the same suppliers again and again which is a massive opportunity to extend direct debiting usage: 

  • Amazon Go’s ‘Self Checkout’ system threatens to change retailing for ever. Amazon Go has no registers; shoppers scan into the store with a free app, shop as normal, and leave the store with the items billed (direct debited) to an Amazon account.  
  • SlimPay, a pan-Europe subscription payment service covering 35 countries for collecting consumer-to-business recurring payments. It is already used by 2,000+ merchants across Europe which range from the very large, e.g. EDF, tripadvisor, to SMEs throughout the region. Basically, SlimPay provides a smart recurring payments gateway based on direct debit.

Potential direct debiting usage

Research by SlimPay and Innopay showed that the stage of subscriptions per type of expenditure has huge potential:

Source & Copyright©2016 - SlimPay and Innopay

New efficiencies in using direct debiting 

There has been increasing focus on using direct debiting effectively. AccessPay recently published a blog on “Direct Debit Best Practice – 5 Tips for Better Cash Flow”, see, and an important table on how to use direct debiting effectively:

Source & Copyright©2017 - AccessPay


CTMfile take: Adyen, the leading multi-channel payment systems provider, believes that, “The ultimate payments experience is invisible.” Is being direct debited the ultimate payment experience? Not always, but direct debiting does offer major cost savings and increased customer loyalty. It is probably the most under utilised payment service today.


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Billing Systems & e-Invoicing
Collecting Direct Debit Bill Payments

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Comments

By Marcel Winterhalder on 17th Feb 2017:

For articles like this it would probably be helpful to include the information which markets were analysed / are being discussed.
Depending on the market you are looking at these statements could not be wronger.
E.g. in Austria and Germany north of 90% of all recurring payments (insurance premiums, utilities, newspaper subscriptions, etc.) are paid by direct debit and it is also a popular choice for e.g. online shopping.
On the other hand, in the UK direct debits are less common (potentially due to the high risk for creditors with an unlimited cancellation right, even after decades - a bit of consumer protection overkill) and in the US north of 90% of the population probably have never even heard of direct debits (to their bank accounts), however even they have a similar concept for auto-debiting credit cards for recurring payments.

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