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Direct Debits Bigger Than Cash; so Why Aren't All Businesses on Board?
As Bacs announces a record-breaking year, AccessPay CEO urges businesses to note the power of Direct Debits.
The most eye-catching statistics are around the enduring popularity of Direct Debits, with more than 3.5 billion transactions being made in 2013 (equating to a total value of £1.1 trillion).
The Payments Council also reported in 2013 that Direct Debit payments had overtaken cash payments for the first time in 2012, with Direct Debits totalling more than £290 billion compared with £267 billion in cash.
As we go forward into 2014, it seems that UK consumers can't get enough of Direct Debits:
8 out of 10 of the UK population have at least one.
79% of people feel positively about Direct Debits - a figure which is at an all-time high.
63% of people prefer to pay most of their bills by Direct Debit.
Bacs managing director Michael Chambers has said, "These new figures show that automated payments are as important as ever to UK businesses and households."
So are all UK businesses getting the message? Or are some still dragging their heels when it comes to adopting a new payment option?
AccessPay Founder & CEO Ali Moiyed explains the situation, "These latest figures from Bacs show Direct Debits going from strength to strength. It's clear to me that UK consumers want Direct Debits, and trust them as a payment method."
"Businesses benefit too. Direct Debits put the business in control, and can improve customer retention rates and cash flow."
"I would like to see even more UK businesses consider accepting Direct Debit payments in 2014. Forward-thinking businesses could even change their business model to accommodate this payment method; perhaps by setting up subscription payments instead of concentrating on one-off sales."
Late and missed payments continue to be a major issue for businesses. A recent survey showed that well over half (60%) who experienced cash flow difficulties blamed late payments.
Ali concludes, "Good Direct Debit Management can make later or missed payments a thing of the past and even save a business. Hopefully in 2014 more UK businesses will realise this and add Direct Debits to their armoury!"
AccessPay is at the forefront of innovation in payments, using cloud-based technology to provide efficient, affordable and fully compliant solutions for Bacs, Direct Debit Management, Faster Payments, SEPA, HMRC RTI and Multi-Bank Cash Management.
For more information about AccessPay, visit http://www.accesspay.com
Contact: Akansha Gupta +44-(0)2032827152