Perfect for subscriptions and bill payments
Direct Debits offer a much better way to take recurring payments. With Direct Debits, customers authorise the business to collect payments directly from their bank account regularly.
Improve your recurring payments journey
In recent years, there has been a switch to subscription-based business models, with more businesses offering their products and services on a recurring basis. Subscription models provide several benefits for businesses, including:
- Predictable revenue streams
- Increased customer engagement
- Lower customer acquisition costs
However, taking recurring payments can be a challenge for some businesses. It’s common to use card-on-file payments, where customers provide their card details and the business charges their card on a regular basis.
However, card-on-file payments have some substantial drawbacks, including:
- PCI-DSS Compliance
- Expensive processing fees
- Poor user experience (UX)
Direct Debits – the recurring payment standard
Direct Debits offer a much better way to take recurring payments.
The benefits for both businesses and customers are clear:
Security: Direct debits are one of the most secure payment methods available. Banks have a number of safeguards in place to protect customers from fraud, and the Direct Debit Guarantee provides additional protection.
Convenience: Direct debits are very convenient for customers. They don’t have to worry about remembering to make payments, and they can be sure that their payments will be made on time.
Reduced churn: Direct debits can help to reduce churn rates, as customers are less likely to cancel their subscriptions if they know that payments will be made automatically.
Lower costs: Direct debits are typically much cheaper than card on file payments. Processing fees are lower, and there is no risk of APP fraud.
Introducing Authenticated Mandates – enhanced Direct Debits
- Authenticated Mandates make verifying and enrolling customers into Direct Debits for recurring payments easy. Data entry is eliminated with just a few clicks and customers are verified via their banking app. Customers can also make their first payment instantly and simultaneously via Open Banking.
What are the benefits of Authenticated Mandates?
- Enhanced security: Authenticated mandates help to protect customers from fraud by requiring them to authenticate their payment instruction. Your customers are verified.
- Improved UX: Authenticated mandates can be completed quickly and easily using the customer’s bank’s mobile app. This provides a better experience compared to 3DS during clunky card-on-file payments.
- Reduced churn: Authenticated mandates can help to reduce churn rates as fewer errors occur via the automated mandate signing process. Making it easier than ever for customers to set up their Direct Debits.