South African fintech startup Direct Debit has launched E-Mandate, a valid electronic agreement that allows customers to sign and authorise debit orders and recurring payment transactions online from any web-enabled device.
E-Mandate has received approval from the Payments Association of South Africa (PASA) and its sponsoring financial institution Mercantile Bank.
After completing and signing the E-Mandate form, both the business and the customer receive a copy of the agreement that is stored in the cloud for seven years, as set out by PASA. Every E-Mandate can be customised to meet a business’s branding requirements.
“E-Mandate is a business-to-business fintech solution that allows customers to sign an electronic debit order mandate with a mouse, stylus or their finger, thereby giving debit order authority to the business,” said Jaco van Wyk, co-founder of Direct Debit.
“Previously, the sign-up process came to a grinding halt as the business had to wait to receive paper or voice authorisations. Customers are now able to sign up easily and quickly. The electronic signature gives instant debit order, card not present or recurring credit card authority.”
He said since the startup recently began offering electronic debit orders, the take up has been from businesses that want to go from offline to online sales or from once-off product sales to subscriptions.
“Our biggest response has been from businesses offering insurance products such as funeral cover and life insurance, non-profit organisations wanting to automate online and face-to-face donations as well as from IT companies. E-Mandate is useful for any business that wants to create an annuity or recurring income stream,” he said.
