E-mandates have many advantages over paper and paperless mandates, most notably in terms of security.
In the future, banks may also be able to offer the e-mandate function. This may offer further benefits. This is an optional service in SEPA and banks do not have to offer it.
E-mandates have an advantage over paper and paperless mandates in terms of security:
Familiar banking procedures - E-mandates use the secure, widely-used online banking services of a customer’s bank. The customer, therefore, can simply rely on familiar online banking procedures. Customers can also re-use their online banking credentials, or other bank-provided electronic access channels, to complete the mandate online. No additional means of identification are required. This decreases the risk of fraud.
Despite this clear advantage, there remains a relative lack of e-mandate providers on the market. For the e-mandate service to work, it needs to be taken up by a significant number of banks.
GoCardless has therefore developed a paperless model which enables merchants to set up and securely manage SEPA Direct Debits online.