4 Benefits of Direct Debit and Why Businesses Use It

Direct debit

A direct Debit is a payment approach that provides the option for customers to permit a financial institution or a bank to withdraw payments from their account or savings every month automatically. This payment method is generally adopted by businesses and people who get regular income, such as self-employed people, independent contractors, and employees. Direct Debit can be an excellent assistance to people who keep forgetting to make regular payments, like elderly parents or disabled communities.

In Malaysia, Payments Network Malaysia Sdn Bhd (Paynet) operates a Direct Debit service, and it is the national provider of financial market utilities. Besides Direct Debit, they offer services such as the popular JomPAY, FPX, and DuitNow.

4 Benefits of Business Direct Debit



Making sure your expenses are low is crucial for any business that plans to grow swiftly. Cost is often the primary thing companies should be heading in whenever they have direct debits. Direct debits are the most low-cost method of taking payments from your customers, even battering credit/debit card methods effortlessly. This method is also adaptable, which is good news for growing businesses because they can readjust their direct debit budget according to the size of their customers because they can increase and decrease over time.



Customer Loyalty

Customers will switch their loyalty to a new company or rival if they find out that this new business can manage or deal with customers and provide them with services, products, or functionality. Customers highly rate companies that have a feature of letting them pay for big purchases in the long term. Hence, direct Debit is the best solution when it comes to that. Other than that, PayNet direct debit can give them peace of mind because now they can concentrate on doing their daily tasks without being bothered by subscription renewal. It also provides a list of protections that can reduce fraud risks. That would eventually ease the customers’ minds knowing that their recurring payment is safeguarded 24/7.


Credibility is one of the essential criteria for newer businesses or startups because when done professionally and efficiently, that would lift their business reputation. Applying a direct debit method can increase confidence in the industry due to its electronic features that result in efficiency. Thus customers would have more confidence in your new business and prefer to deal with you regularly.


Enhance Cash Flow

Apart from other benefits that we mentioned earlier that can help your business expand, cash flow is their most significant benefit since improving cash flow is crucial to fast-track your business. Businesses, regardless of any size, should look into two things when it comes to cash flow. They are predictable and consistent. Of course, small businesses are the ones that are impacted the most due to their limited budget; hence that would ultimately cause cash flow issues. Unpredictable cash flow would be the primary determinant of setting or not setting up monthly obligations and can cause severe damage to your business in the long or short run. 

Direct Debit is the answer to overcome this since it has the credibility to minimise late payments and enhance cash flow adequately. When your business implements Direct Debit, you and the client have agreed to have a cut-off date where the client/customer’s payment to your business is on the exact date and time. Direct Debit can effectively reduce the possibility of customer payment delay and cause cash flow shortage.

Direct Debit With Tao.Net

Tao Net is a software development company in Malaysia that has been around for more than 20 years. We provide software development, implementation, and integration expertise for large enterprises. Our primary services are RPA (Robotic Process Automation), PayNet FPX, Direct Debit, and Enterprise Application Development. For Direct Debit:

  • Support both the biller model and payer
  • Easy Integration with current bank systems
  • Easy Customisable system values such as fee charge
  • Full documents checklist that covers support, product, and implementation
  • Add-on new services with minimum effect on current services

Visit Tao.Net today for more info, and contact us today!

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