Bacs cookie policy

We use cookies on our website to provide you with the best possible online experience. By continuing to use this site, you give consent for cookies to be used. Please read our cookie policy for more information and details on how to change your preferences. Cookie Policy.

Bacs sends clear message as more records were broken in 2016

10.1.2017

*Payments worth almost £5 trillion in 2016*

**6.22 billion transactions across the year**

***109 million transactions in just one day***

Almost six and a quarter billion payments worth a total of £4.8 trillion were processed by Bacs Payment Schemes Limited (Bacs) in yet another record breaking year for the company behind Direct Debit in the UK.

At the end of September 2016, a huge 109.3 million Direct Debits and Bacs Direct Credits passed through the system in a single day – that’s the equivalent of more than 7 million payments each hour the processing window was open (15.5 hours), or in excess of 117,000 per minute. That figure surpasses the previous daily high of 103.7 million transactions recorded only months earlier in 2016 (28 April).

Direct Debit grew by 4.9 per cent across the year, breaking the 4 billion barrier for the first time, with a total value of £1.3 trillion, while Bacs Direct Credit saw values increase by almost 5 per cent, to £3.5 trillion.

Michael Chambers, chief executive officer of Bacs, said: “Just three years away from Direct Debit’s 50 th anniversary, and we’re still seeing tremendous growth in use. This demonstrates the hugely important role Direct Debit still plays for consumers and businesses when it comes to paying those regular bills, and how it remains a payment option of choice for billers from all sectors.

“At a time when the UK payments industry is facing tremendous changes, this is a clear message that established payment methods are still firmly in favour with people and with businesses.”

As well as its core payment methods, Bacs also owns and manages the Current Account Switch Service, which was developed to remove barriers to switching for consumers, small businesses and small charities. With 44 participants covering almost 100% of the UK current account market, the service has been used over 3.5 million times since it launched at the end of 2013.

Bacs is also responsible for the Cash ISA Transfer Service, Biller Update Service, and the Extended Industry Sort Code Directory, as well as the new Bulk Redirection Service which is used by banks, government departments, and large corporates for moving substantial numbers of accounts and regular payments between banking providers.

For further information contact our press office​.​​​​

 

Notes to Editors:​

About Bacs:

Bacs has been maintaining the integrity of payment related services since 1968, with responsibility for the schemes behind the clearing and settlement of UK automated payment methods, Direct Debit and Bacs Direct Credit, as well as the provision of managed services for third parties, such as the Cash ISA Transfer Service, and the development, management and subsequent ownership of the Current Account Switch Service.

More than 120 billion transactions have been debited or credited to British bank accounts via Bacs since its inception; in 2016, nearly 6.25 billion UK payments were made this way, while a new record was also set in September 2016 with the number of transactions processed by Bacs in a single day reaching a high of 109.3million. 

A not-for-profit entity which has maintained carbon neutral status since 2012, Bacs is a membership company limited by Guarantee.

For further information please visit www.bacs.co.uk.

More about Direct Debit:

A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying amounts from their account, normally for regular payments for everything from household bills to charitable donations. Almost nine out of 10 British adults have at least one Direct Debit commitment, with 73 per cent of household bills paid this way; 62 per cent of people in GB prefer to pay most bills by Direct Debit, and the number of people who feel positively towards Direct Debit reached 77 per cent in 2016. Over 4 billion Direct Debits were processed in 2016, and Direct Debit payments are protected by the Direct Debit Guarantee, a money back consumer safeguard.

For more information about Direct Debit, visit www.directdebit.co.uk.

More about Bacs Direct Credit:

Bacs Direct Credit is a simple, secure and reliable service, which enables organisations of all sizes to make payments direct into a bank or building society account - unlike cash or cheques, Bacs Direct Credit payments cannot be lost, stolen or delayed in the post. There are more than 150,000 organisations in the UK using Bacs Direct Credit; while it has been widely adopted to pay benefits, wages and salaries – nearly 90 per cent of the country’s workforce is paid this way and one billion benefit payments are made via Bacs Direct Credit – it is also the payment method of choice for a range of other applications such as pension payments, employee expenses, insurance settlements, dividends and refunds.

Bacs also owns and manages the Current Account Switch Service, as well as operating the Cash ISA Transfer Service and the Biller Update Service. Find out more here.