As a merchant, what are the advantages of SEPA Direct Debit?

SEPA Direct Debit is a convenient payment method that allows you to collect funds directly from your customers’ bank accounts, with their prior authorisation. Once your customer provides you with a mandate, you can initiate payments on agreed dates after notifying them, eliminating the need to chase late payments.

This method is widely used in Europe, with more than 21 billion transactions processed annually. It offers your customers a seamless, automatic way to pay that requires no extra effort on their part.

For merchants, SEPA Direct Debit also helps reduce involuntary churn, which can account for up to 30% of lost customers. Involuntary churn occurs when payments fail and satisfied customers unintentionally lose access to your product or service. By using SEPA Direct Debit, you can significantly reduce failed payments and protect your recurring revenue.