BACS have recently released figures showcasing another significant milestone is about to be passed for Direct Debit; the 4,000,000 mark for users of the current account switch service:
- Almost 4 million switches since launch of Current Account Switch Service
- Seven day switching success rate of 99.5%
- 23 million payments successfully redirected using the Current Account Switch Service
For those who aren’t part of the 4 million who have made use of this, it – in its own words – “makes switching your current account between banks and building societies simple, reliable and stress-free.”
Launched to give consumers more freedom to easily change current account providers, it was a significant step in transforming Direct Debit to the much more convenient method of payment we know it as today.
We’ve covered before the fact that Direct Debit has seen strong growth as a chosen method of payments for both consumer & businesses. Whether it is road tax going “paperless” or the fact that over 40,000 organisations across the UK rely on it; here at London & Zurich we certainly see this growth in confidence taking place in the conversations we have with our customer every day.
Not only are we looking at nearly 4 million since the scheme’s launch in 2013, BACS have also reported the most frequent figures, suggesting that there’s no sign of this slowing anytime soon:
“During the last 12 months (1 July 2016 to 30 June 2017), a total of 909,186 switches were completed, with 218,138 switches recorded in the last quarter alone (April – June 2017).”
The Switch service is currently designed to assist consumers, small businesses & charities, this growth is a highly encouraging sign for those looking to secure their own cash flow with direct debit collections. Increased confidence in direct debit, even in the consumer space, is one which filters across into business increasing the acceptance and lessening and potential friction to this as a payment method.
L&Z’s, Sam Pollard said, “These recent figures are really encouraging for the industry and show that customers are recognizing direct debit as the flexible, secure payment method that it is.”
Of course, if you currently collect payments for your business via direct debit, we can also discuss our own solutions to enable you to switch easily – speak to one of our team today, they’d only be too happy to help.