Paystack Launches A Direct Debit to Allow Nigerian Businesses to Charge Customers Bank Accounts Directly
Nigerian fintech company that offers payment processing services to businesses, Paystack, has launched a direct debit to allow Nigerian businesses to charge customers’ bank accounts directly.
With the direct debit feature, businesses can now streamline their payment processes by automatically debiting funds from customers’ bank accounts. This not only simplifies the payment experience but also offers a convenient and efficient solution for recurring billing, subscription services, and other payment models that require periodic charges.
It will also help merchants and other services reduce costs related to card transactions and reduce other frictions related to card payments.
Paystack disclosed that it collaborated with the Nigeria Inter-Bank Settlement Scheme (NIBSS) which operates the country’s instant payments infrastructure to connect nearly two dozen banks for direct debits.
Speaking on the launch of the Direct Debit Paystack said,
“Everything from the acquisition of a switching license to infrastructure improvements to deep product investments in bank transfers all laid the groundwork for us to finally be able to offer a robust direct debit experience”.
In recent times, Paystack has been looking to go direct to help businesses and consumers complete payments solely from a bank account or an equivalent mobile money wallet.
This launch is particularly noteworthy in the context of the Nigerian business landscape, as it addresses a key aspect of financial transactions. Direct debit provides businesses with a reliable method to collect payments, reducing the reliance on manual processes and offering an automated, secure, and transparent way to manage financial transactions.
For businesses utilizing Paystack’s platform, this enhancement expands their capabilities, allowing for more flexibility in billing and improved cash flow management. It also aligns with the broader trend of digitization in the financial sector, offering a tech-driven solution to meet the evolving needs of businesses and consumers alike.
