Hi there

I read this thread with a lot of interest and Paul already explained a lot. But I still see a lot of confusion in regards of the differences between Direct Debit and Direct Pay and Debit Cards. And you're right, it is confusing.
As a German I might be able to bring a little sun light in this confusion - I will try to explain with daily business examples.

Direct Pay:

As Paul explained before, Direct Pay is a direct payment made by the user. It is a redirection to their online banking, where they need to login and make the payment. Germany does not have any checks anymore. That's why they have to use their online banking. And - not all banks are doing it yet.
Advantage: almost instant
Disadvantage: no user data, no recurring, no instant upgrades etc

Debit Card:

We Germans have Debit Cards - yes. But they are not comparable to our US Debit Cards where I can pay online everywhere and it is been handled like a credit card online (more or less)
We have an EC card (which replaced the former EuroSchecks (checks) ) with Maestro. Right now, I can't pay ANYWHERE online with this card. I can pay in my grocery store and most of other stores offline, but not online. So this card is just useful for me when I am over there, to get money out of the ATM and go shopping.
I tried it first when I moved to the US - I can get money out of the ATM but I cannot pay online with it
They are in progress of changing this in a long term project.
No need to mention advantage or disadvantage

Direct Debit:

For Direct Debit you need to know about the cultural difference - I am still using Germany as an example. In Germany everybody has (needs) a bank account since there are no checks anymore as previous mentioned. I pay my rent, electricity bill, phone bill, basically any bill via direct debit. Unless it is a one time payment and I make a wire. (That's a lot easier in the EU than here as I found out)
Ok my recurring bills - rent, phone (even with different amounts every month) insurances, power etc I pay per direct debit. How does it work?
I provide my bank details once and the companies withdraw the money directly from my account - month for month and year for year until I cancel, or change. There is no other way to pay for - no checks - no credit cards accepted. That's why everybody has to have a bank account. Even for deposits I need it. If I get government money, like welfare, retirement money, tax refunds, unemployment money or whatever it might be, I need a bank account to receive it.
Ok - let's put it together:
The German/Dutch/Austrian etc is so much used to use this - even my great grandmother pays like that and so does my daughter of 17

So here's the advantage of real Direct Debit focused on our business:
Everybody knows it, is setup for it and used to provide bank acc details.
Recurring, different amounts every month, instant upgrades, tokens, coins.
A bank account usually exists for your life time.

Just one example before I stop boring you

My daughter lives in Germany and I did want to set her up with her own internet access flat rate. I did my research and had to ignore some companies because I could not pay with a CC. I thought I check out 1&1 because I know they are very global and also have a huge presence here in the US and should be able to bill my CC monthly as FPL is doing it
I was very disappointed. As a German customer - I need to pay per direct debit or I cannot setup an account for her. No matter what...

I hope I was able to clarify some questions of the difference between these European "Debit Thingies"

If you are interested to get a deep insider look at it, pay attention to the next Klixxx issue. JoeD has written a great, huge article about it, with numbers and deep, deep research.

Have a great weekend everyone

Ines