Recurring payment is a Directpay feature that allows a partner to charge a linked account periodically i.e. monthly, weekly or daily.

The Use case

BuyNow is a company that allows to Buy a product now and Pay Later. As a partner, you can setup a recurring payment on a linked account by specifying a later date with the preferred frequency e.g. Charge Mr A's Bank with the sum of 5000 Naira, starting next week Monday for the next 4 months.

This means that

  • The monthly payment amount is 5000 Naira

  • Mr A is paying back a total amount of 20,000 Naira.

  • The payment is charged on the same day every Month

  • The payment starts on the set start date i.e. next week Monday

  • The payment ends once the 4th payment is completed i.e. the 4th month.

How does it work ?

Firstly, A standing order will be created on the user's bank account. At the point of linking their account and setting up the recurring payment, their account won't be charged unless the start that is set for the current date.

Next, the end User's account will be charged on the set date. The standing order will automatically be canceled by the bank's system by the end date.

Types of cancellation

A recurring payment can only be cancelled the following ways.

  1. System cancellation

    This is by the bank's system using the end date attached to the standing order

  2. User cancellation

    This happens when the user cancels the standing order from their bank account.

  3. Business Cancellation

    A business can pass the direct-pay cancellation web-hook and cancel a direct-pay payment from a customer’s account.

To learn how to set up recurring payment via a DirectPay page for your business you can check the article here. To activate DirectPay for your business you can follow the instructions here.

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