What Do Consumers Expect From Your Bill Pay Solution?
Are you treating consumers how they want to be treated when it comes to billing and payment? To find out, I spoke with David Albertazzi from Aite Group about his new research 'How Americans Pay Their Bills'. Let’s see what David’s data says.
18 easy ways to pay bills – most are electronic
David: “What was once a simple transaction of writing a check has evolved into a complex interaction with an increasing number of options. Among all these options, electronic payments are the most popular, with ACH representing 46 percent, and credit/debit cards representing 30 percent. Credit and debit card payments far exceed checks in popularity for consumers.”
David notes that consumers differ among the timing of their payments, with most payments made one at a time. Only 32 percent of payments are made on a recurring basis.
“We see an opportunity for organizations to further convert more consumers to set up recurring payments. Tools like online auto pay and marketing auto pay can make a big difference,” David added.
Consumers have three different models for paying bills online today. Biller websites have grown in popularity from 62 percent in 2010 to 73 percent in 2016 at the expense of banking websites.
This growth in biller websites has been driven by younger generations looking for immediate payment posting. 78 percent of online payments made by Millennials are at biller websites, compared to 60 percent for seniors.
“When you see how consumers use a combination of channels, payment methods and timing, you see the complexity of how consumers pay today,” David advised.
Engaging electronic billing options
There has been enormous growth in consumers turning off paper bills and electing to receive bills only electronically. Organizations with a comprehensive eBill solution will benefit in terms of higher consumer engagement and lower costs.
Bill payment methods for every generation
David: “Seniors pay a larger percent of bills with check; 31 percent vs. 8 percent for Millennials. Millennials and Gen Xers pay more bills with debit cards at 22 percent and 16 percent, respectively.”
How should organizations upgrade their bill pay solution?
Based on this data, David has three recommendations for organizations:
- Meet consumer demand for a wide variety of payment options to best represent an organizations’ brand.
- Many organizations are outsourcing payment management. This allows organizations to reduce compliance and infrastructure costs.
- If you decide to outsource, APIs allow organizations to remain in total control of the user experience. Organizations are leveraging APIs to accept payments from the increasing number of places consumers want to pay you.
David was kind enough to share his complete research report with us. You can view industry-specific breakdowns in this free report.
*Source: Aite Group’s How Americans Pay Bills Report sponsored by ACI Worldwide
Related Blog Posts
Securely Growing Online Sales in 2018: An Australian Perspective
Back in November 2017, I participated in a panel discussion for NORA (National Online Retail Association), where I looked at fraud trends in Australia over the previous holiday shopping season and made predictions to help retailers prepare. Now looking back, I am sorry to say that my predictions were painfully accurate.
When Is Processing Payments in The Cloud More Secure?
Back when I started my career, “Jessie’s Girl” by Australian rocker Rick Springfield topped the charts, the federal funds rate was 20 percent and most organizations were reliant upon one or more mainframe computers that were hosted in an internal “computer room.”
More than Half: the Story of Cyber-Attacks and Global Organizations in 2017
Three words. It might not seem enough to cause a rethink of your 2018 cyber-security strategy, but it should. Why? Because according to the latest Forrester report, “Top Cybersecurity Threats for Retailers in 2018,” attackers breached more than half of all global enterprises in 2017.
More. Than. Half.
The Seasons Are Changing (And So Are Fraud and Regulations)
If you smell the air, you can sense the seasons changing; a little crispy cold moving in suddenly, the leaves are reddening and the winds of Faster Payments and PSD2 are kicking up. Smooth transition, right? So, yeah, seasons change, and so do regulatory regimes. In the US, we’ve been largely left to our own discretions about how to run our fraud shops, with some regulatory oversight regarding disputes handling. Historically, financial institution processes around authentication and fraud monitoring (including analytics and strategy) could be anything or nothing, depending on an institution’s risk appetite. Like the seasons, this might be in transition.
Learning Lessons from Large Scale Breaches
At this point, there’s no ignoring it: our financial security is compromised daily. And no doubt, many reading this wouldn’t hesitate to recount all the breaches they have been a part of as consumers; merchant breaches in which replacement cards forced you to update your linked accounts, or data compromises where personal information was stolen and identity theft protection was provided, forcing you to consider freezing new credit originations.
What Australia's $639M Cnp Fraud Problem Means for Retailers
In my role at ACI Worldwide, my fellow fraud consultants and I constantly share information from all corners of the globe. One recent bit of intelligence that immediately caught my eye, and I shared with colleagues across the world, was the staggering cost of card-not-present (CNP) fraud here in Australia.
CNP fraud accounts for 78% of all payments-related fraud in Australia. And to say it is a challenge for retailers—and the industry as a whole—is a vast understatement. With the astounding growth in eCommerce sales, this is not a problem in decline; it is rising aggressively and shows no signs of abating.
PSD2 Carries over to the U.S. – Thanks to the Phone in Your Hand
Let me ask you a favor. Could you put down your phone for just a minute? Unless, of course, you’re reading this on your mobile device.
It can be an uphill battle asking someone to put down their phone these days. I have a tween, so I know the struggle! One of the reasons we’re so reticent to do so is the sheer power contained within these devices. At this point, it controls the music, the temperature, the locks and even the lighting in your home, and that’s not even touching on its entertainment value, or its capabilities as a payment device. The device, in its present form, has been around for ten years now, and in 2017, it’s safe to say there’s no going back.
Filtering the Fraudster
In our new Insight Paper, we focus on how merchants can build an effective fraud filter for their sales funnel – one that is not over-restrictive, leads to genuine sales being accepted, and prevents genuine fraud. Get the balance right and merchants stand to improve their checkout conversion rates and boost their bottom line.
Stop Fraud… or Increase Conversion Rates? with a Fine-Tuned Fraud Engine, Merchants Can Do Both
Preventing fraud and driving high conversion rates are universally important objectives for merchants – but many struggle to adequately balance these two demands. They either employ aggressive fraud prevention strategies to minimize fraud losses, or conversely, reduce checks in order to prevent false positives, improve customer experience and ensure sales targets are met. Neither exclusive approach works in the long run; focusing on only one will prove costly on multiple fronts.
Eta Transact: Time to Break Out… and Cross Borders to Reach New Customers
It’s before lunch on day one of ETA Transact17 in Las Vegas; exhibitors are still putting the finishing touches on their stands in the main hall, so it’s the perfect opportunity to sit in on some of the breakout sessions, part of the educational program put on by the Electronic Transactions Association. And ‘breakout session’ seems particularly apt in this case, as panelists from ACI Worldwide, Planet Payment, and arvato launch into a discussion on how merchants and payment providers can ‘break out’ of their domestic markets and take advantage of the huge opportunity in cross-border eCommerce.