KUALA LUMPUR, May 25 — Affin Bank Bhd (Affin Bank) and Affin Islamic Bank Bhd launched a new product named Direct Debit today to facilitate merchants in managing the recurring payment from the clients.

Group chief executive officer Kamarul Ariffin Mohd Jamil said this is an alternative to the bank’s usual collection modules under its cash management solutions

"This newly launched card is aided to facilitate smooth recurring collections of merchants. We hope that this product will set a mark in making our customers’ day-to-day transactions more efficient, convenient, effective and secure,” he said in a statement.

Kamarul said Direct Debit benefits the entire business ecosystem through better payment management and collection reconciliation.

It offers a convenient and efficient collection method for businesses and billing organisations whereby it enables automated collection of recurring payments directly from client’s bank account at multiple banks with a single authorisation, he said.

"Businesses can collect payments from its clients efficiently by debiting clients’ bank account on recurring basis determine when and how much to debit their clients once the direct debit mandate is obtained from them,” he said.

It is touted as more cost-effective for businesses compared to some other auto-debit payments.

It is built with a secure payment infrastructure and businesses can collect payments from customers at 22 participating banks.

Moving forward, the Bank targets to acquire at least 30 sizeable Direct Debit merchants with a minimum yearly collection of RM50 million in transaction value by end of 2018.

Other facilities under the Bank’s Cash Management solutions include standing instruction, FPX and JomPAY.