Revolut studies have revealed that while most citizens in the United Kingdom use cards to pay for goods and services, some businesses require you to pay direct debit. For example, it can be a utility bill, a gym membership or a telephone contract.
Fintech startup Revolut adds a key feature for users who want to completely replace their traditional bank account. You can pay direct debits with GBP now. Last year, Revolut added EUR direct debits.
Direct debits pull money directly from your account compared to card transactions and transfer it to the account of the recipient. It bypasses the use of either Mastercard or Visa. Many firms prefer direct debits because they are usually cheaper than card processing charges. There is also no expiry date for direct debits, unlike cards.
For this feature, Revolut has partnered with Modulr as it uses the API of Modulr. Business customers will also benefit from direct debits. You can now pay suppliers with details of your account, which might be convenient, for example, for large sums of money.