With household budgets stretched, bigger purchases can be pushed quickly down the list, as people
prioritise their spending. And should that purchase be viewed as a luxury rather than a must-have,
then it can disappear completely. If yours is a company with a business model based entirely around
nice-to-haves, that can mean bad news for your bottom line.
The benefits of Direct Debit for household bill payments are well documented for both biller and bill
payer – cheaper and easier for both to manage and, for the customer, the added security of the
protection afforded by the Direct Debit Guarantee. Naturally, those advantages do also apply
outside of the everyday bills arena.
For instance, new research shows that spreading payments over time would encourage people to
take the plunge and book a holiday – largely because it removes the stress associated with finding a
large chunk of cash up front.
The survey, carried out by payment provider Klama, also showed that people who could pay in
instalments would be more likely to spend more overall, and the option would improve the chances
of their becoming a returning customer.
If that applies to travel, consider all the other large purchases that might benefit from removing the
barrier of one large payment and replacing that with an option for spreading that cost by a payment
as reliable and established as Direct Debit? That could be signing up to an annual service plan for a
car, or even booking a venue for a major family – or business - event.
If you’d like to find out more, get in touch! In the meantime, if you want to read about the travel
research, you can find it here.