Direct Debits reach £1 trillion in 2008

The value of electronic payments in the UK totalled £3.85 trillion during 2008, according to the body that processes them.

And just over three billion Direct Debits were processed, with a combined value of nearly £1 trillion.

The figures have been released by Bacs, which described 2008 as a 'record' year.

The not-for-profit body is owned by 15 of the UK's banks and building societies, and last year celebrated 40 years of processing automated payments for the UK financial industry. Such payments comprise Direct Debit, and Direct Credit - the process by which most employees are paid.

Bacs' figures come just a week after the cheque marked its 350th anniversary. Speaking last week, the Forum of Private Business urged the Payments Council not to set a date for phasing out paper payment until Direct Debit was made cheaper and more accessible to small firms.

In 2008, the volume of electronic payments increased by 2.8%, while the overall value of payments rose by 6.8%.