Global fintech SumUp has today launched direct debits, providing merchants with an even more streamlined payment experience.
The direct debit feature is immediately available for UK-based merchants who have a Business Account, an all-in-one, zero fees solution introduced in 2021. A full UK current account that gives merchants total control of their finances on the move, the Business Account is managed via smartphone and enables merchants to spend, save, and manage funds.
This new feature responds directly to merchant feedback, with surveys showing that the overwhelming majority of UK adults (90%) utilise direct debit for at least one regular payment. Effective immediately, UK merchants can now facilitate their payments using Bacs direct debits through their Business Accounts.
Benefits to merchants include:
Automated Payments: Direct Debit payments allows merchants to automate recurring payments such as utilities, subscriptions, and memberships, thereby reducing time spent on manual tracking and processing.
Reduced Administrative Burden: Automation also means that merchants won’t have to spend time chasing payments or dealing with late payments (a major pain point and cost for UK businesses). Reduced admin and increased convenience are both of great importance to merchants.
Cost-Effectiveness: By minimising manual processing, Direct Debit reduces the risk of errors which can be costly in terms of both time and resources.
Security and Compliance: Direct debit payments are protected by the Direct Debit Guarantee, which ensures that customers can get their money back if a payment is taken in error.
Regulatory Compliance: Offering direct debits requires adherence to strict data protection and security regulations, ensuring that merchant information remains secure.
The move is testament to SumUp’s commitment to their merchants - constantly upgrading the product suite, looking to merchant needs, and tailoring products accordingly. Over the past year, in the UK alone, SumUp has launched several innovative solutions: including SumUp One, self service terminal SumUp Kiosk, delivered Tap to Pay on iPhone and Android, and brought merchant financial support in the form of a cash advance product.
SumUp Global Bank Tribe Product Lead Antoniya Ditsova: “At SumUp, we understand that even small inefficiencies can translate into significant costs for businesses. The introduction of direct debits is a direct response to merchant needs, reflecting our commitment to continually enhancing our product suite. This new feature is designed to simplify operations for our UK merchants, allowing them to focus more on growth and less on administrative chores.”