Introduction

Making money is usually the common reason for starting a business, which makes getting paid the most important thing for the business. Yet, getting paid can sometimes feel like an extreme sport, with constant juggling of receivables. But what if there was a way to wave goodbye to the hassle of chasing down payments each month?

Let’s introduce you to Direct Debit, the game-changer you’ve been waiting for.

Previously, implementing Direct Debit in Nigeria involved a tangled web of paperwork, approvals, and headaches. However, this changed positively when NIBSS introduced an improved API-driven Direct Debit system. This new system allows banks, payment providers, and others to integrate direct debit seamlessly, offering a smoother experience for businesses and payers.

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What is Direct Debit?

Direct Debit is an automated payment method that allows businesses to collect payments directly from their customer’s bank accounts, with the customers’ prior authorisation. It eliminates the need for businesses to manually initiate payments or chase down customers, resulting in a more convenient and efficient payment experience for both parties.

Types of Mandates

1. ‍Paper Mandate: This is a semi-manual method of setting up a Direct Debit mandate. In this type of mandate, the customer is required to sign a mandate letter tied to their chosen bank account. This letter is then programmatically sent to the chosen bank, which validates it with the customer and activates the mandate before a biller can debit the customer’s account.‍
2. E-Mandate: This is the most seamless and convenient option for both the Customer and the Biller. In this mode, the customer simply needs to send a small token, usually not more than N100, to the specified account. Once the payment is successful, the mandate is instantly activated and can be debited based on the authorised schedule in place.

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How does Direct Debit work?

As a Biller

This off-the-shelf Direct Debit solution can be deployed within your infrastructure (self-hosted), or leverage access as a Software-as-a-Service (SaaS) platform from our partners like Lendsqr and Onepipe who can profile you as a Biller within minutes.

You create direct debit mandates (think of them as payment permission slips), and our solution does the rest. Once consented by the customer and approved by the respective bank, the system automatically debits the specified amount from the customer’s bank account at the scheduled intervals, like clockwork. No more chasing, no more missed payments, and no more stress.

And let’s not forget the cherry on top: partial debits. Gone are the days when you had to debit the exact mandated amount. With this solution, you can debit lesser amounts if needed, making it the perfect companion for loan collections or any other flexible payment scenarios. Direct debit is especially useful for loan businesses.

As a Customer

Depending on the type of mandate initiated by the biller on your behalf on our direct debit platform, you will receive the necessary notifications and detailed instructions on how to activate it

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Benefits of our Direct Debit Solution

Our solution offers benefits for both businesses and customers, making it a versatile option for various industries. Here are a few of these benefits:

1. ‍Easy Direct Debit Implementation: Being a ready-to-use solution, the application can be operational within the same day if its core dependency, Assurdly’s NIBSS-in-a-Box, is in place. Otherwise, it can also be used as a SaaS platform, leveraging our existing partnerships as an off-the-shelf solution.‍
2. Automated Payment Collection: Say goodbye to chasing customers for payments. This solution automates the entire payment collection cycle, ensuring a hassle-free experience for both you and your customers based on the mandated schedule in place.‍
3. Flexible Debit Amounts: When setting up repayment schedules, you can enable partial debits, allowing the debiting of customers for lesser amounts than mandated, when necessary.‍
4. Streamlined Mandate Activation: Creating and activating mandates has never been easier. Our solution offers an intuitive mandate creation process for both manual and e-mandate versions. The e-Mandate option eliminates the need for physically signed mandate letters and manual approval processes, saving you valuable time and effort.

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Success Stories

Lendsqr: Revolutionising loan repayments

The implementation of the direct debit (DD) platform has significantly improved Lendsqr’s business operations, optimising payment processes and improving overall efficiency. Assurdly, as a key partner in the setup, has played a pivotal role in providing technology solutions with their expertise in payment processing. By enabling scheduled and recurring payments through the DD platform, our lenders have experienced improved cash flow management. The predictability of payments has allowed for better financial planning and reduced the occurrence of late or missed payments.

OnePipe: Streamlining Payment Collection

OnePipe, a CBN-licensed payment service provider working with Assurdly, extended the Direct Debit Solution to become its biller aggregator platform — PaywithAccount. PayWithAccount enables merchants and businesses to collect recurring payments from their customers, making it more efficient and convenient for businesses and customers alike.

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Conclusion

Our direct debit software is ideal for a wide range of businesses and organisations that rely on recurring payments, including lending services, utility companies, subscription services, and payroll services. By automating payment collection processes, businesses can save time, reduce costs, and enhance customer satisfaction. It’s the perfect solution for businesses seeking flexibility, security, and convenience in their payment processing.

Get started with Direct Debit

To get started, contact us at business@assurdly.com or visit www.assurdly.com for more information.

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