With the launching of the Direct Debit feature by financial institutions in July 2020, customers would have the convenience of giving a mandate for their regular payments to be settled without the customer having to remember the payment due date or having to make such payments by himself or herself whenever such payments are due. These payments could range from utility bill payments such as electricity bills, water bills to insurance premium payments to telecom bill payments.
This feature also benefits business establishments where they now have an option to collect payments from their customers in a timely manner whenever payments are due. For example, companies can request their customers belonging to any financial institution which offer the Direct Debit feature to provide a Direct Debit mandate so that the financial institution where the companies maintain its accounts can initiate a payment request based on the customer’s mandate to pull money.
