Next generation direct debit

Direct debit has always been one of the lowest cost ways of making and receiving payments. But until recently, it hasn’t been the most convenient or desirable option for merchants or consumers. Manual processing of payments and delays in receiving payments made direct debit feel like a payment method for the analogue age, not the digital one. Split has reinvented direct debit so that it moves money as quickly, effortlessly and securely as the digital world demands.

Modern businesses need a payment platform with digital DNA.

A payment platform for right now

Split takes what you love about direct debit – the security and low cost – but eliminates the effort and admin you hate to create a truly ‘digital first’ payment platform. Its powerful API connects to your existing accounting and POS system so you can automatically collect one-off or recurring payments from your customers with minimal data inputting or effort. Set and agree the payments terms with your customer just as you would with traditional direct debit then forget about it.

It’s payment that just happens.

It’s direct debit rebuilt for the digital world.

Direct debit you and your customers will want to use

Split’s API does the work of accepting, verifying, disbursing, managing and reconciling payments for you. There’s real time verification that checks actual available funds before the money is moved so you can treat it like a credit card (but without the fees). And because Split’s uses bank transfer, you get superfast, secure payment without the financial sting of credit cards or other online payment methods.

2016/17 direct debit growth

In 2016/17, use of direct debit grew by 13% as it continues to offer businesses the most effective way of getting paid on time every time.

Pay with money you have

Consumers prefer to pay with money they have – there are twice as many debit card payments as there are credit card payments per month

A new era in payments

Credit card payment used to be king. For customers, there was the perceived protection offered by credit card purchases and the bonus of credit card points. For the merchant, there was the ease and availability of credit card payment and the security of knowing they would get paid, even if their customer defaulted on their credit card payments. But the world is falling out of love with this good time guy of consumer and B2B payments. Why?

Fear of credit card debt

Australians have been cutting their credit card use since 2011. According to a 2015 HILDA survey, 24.2% of households had credit card debt (average value $1,661) compared with 29.5% in 2006. The stagnation of household income in Australia means that Australians are nervous about running up credit card debt.

Millennials now have more choice when paying for goods & services.

Millennials don’t use credit cards

Having come of age during the 2007 credit crunch, millennials are understandably wary of getting into the same credit debt issues they saw the older generation experiencing. In the US and elsewhere, millennials have shunned credit cards in favour of debit cards, or are using online payment sharing apps like Venmo to transfer money direct from their bank account or debit card to friends and family.

Cost of credit card payments to the merchant

Around $334 million in credit merchant fees were paid online per year in Australia. With an average average merchant fee of around 0.7% of the transaction value (compared to around 0.15% it’s easy to see why this figure is so large. Unsurprisingly, merchants are growing tired of the exorbitant cost to their bottom line of credit cards.

1.75% + $0.30 a transaction

The average fee paid by merchants using Stripe is 1.75% of the transaction value plus an additional $0.30 per transaction.


The average cost to collect a payment with Split is a maximum of 1.25% of the transaction value – that’s it.

Talk to us about how you can cut the cost of payments

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