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
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.
Assessing Same-day ACH In The New Era of Real-time Payments
The pace of payments has risen sharply in the U.S. since the introduction of same-day ACH in September 2016. Following the global movement towards immediate payments, the pace is set to pick up as real-time speed arrives through schemes such as The Clearing House (TCH) Real-time Payments System and Zelle networks.
The Many Delicious Flavors of P2P
We’re now very much into the height of summer (real feel today outside my door is 98 degrees, not to be confused with that amazing band from the 90s). And following the recent Zelle launch, we’re also very much into the height of P2P hype. As Mark and I are wont to do, we’re mixing up food and payments (a delicious combo)! And in this case, we’re talking about one of our favorite summer (or year-round) treats, ice cream. We’ve waxed poetic about ice cream in prior blogs (i.e., shops at the Cape and in Newport that still abide by old-school cash-only policies, etc.). Specific to this post, if you think about it, the roster of P2P options continues to increase, like the number of amazing flavors that Ben & Jerry’s offers these days. And with spoons in our mouths and napkins in our hands, it’s time to rant!
The Path to Faster Payments – A US Perspective
With news that the Faster Payments Task Force released its final findings today and set the deadline for our country’s new payment system to be live by the year 2020, a mere 29 months away, it leaves many in the industry getting ready to roll up our sleeves because it is going to be an all-hands-on-deck 29 months.
Connect, Learn, Share – The ACI Exchange 2017 Round UP!
If you’ve never experienced “dry heat” (which is much like actual “heat”)—you haven’t lived! Stepping off the plane in Phoenix last month for ACI’s Annual User Exchange, the mercury was literally jumping out of the thermostat at 116 degrees Fahrenheit…and it was unlike anything this New Englander has ever experienced. I mention the weather here because it’s the important backdrop to talk about Exchange itself; you could say that the heat was required to properly bake this event to perfection over the four-day agenda and fully deliver on this year’s theme of connect, learn, share.
Why ATMs Are a Successful Piece of 'Social Tech' Not Heading for Retirement Anytime Soon
The ATM turned 50 last week (on June 27, to be exact) and despite the spectacular growth of alternative payment methods and predictions that we are heading toward a cashless society, birthday celebrations around the world were upbeat. Most industry commentators seem to agree that the ATM is alive and kicking. As ACI’s Lu Zurawski, EMEA consumer payments lead, says in an interview with Forbes: “The ATM is a successful piece of social technology and won’t be heading for retirement any time soon.”
Challenges and Opportunities for Girls and Women in STEM
ACI is planning to host its third Coding for Girls camp in Omaha on July 15th—a free day-long event to teach middle school girls about coding and programs like HTML, CSS and Java, hosted by the Peter Kiewit Institute at the University of Nebraska at Omaha (UNO). As we gear up for our next camp, we sat down with Deepak Khazanchi, Professor and Associate Dean for Academic Affairs at UNO College of Information Science & Technology (IS&T) along with Shelley Ahlers, ACI’s SVP of Software Engineering, to get a deeper picture around the challenges and opportunities for women and girls in Coding and STEM fields.
The ATM Turns 50: Why Evolution Is Key For Its Survival
The ATM turns 50 this year and half a century on ATMs remain popular with consumers worldwide. Banks and building societies more than ever see ATMs as a key channel of communication and interaction with their customers and many are now offering ATM services that go beyond simple cash withdrawal. We spoke with Paul Horlock, Director for Payments at Nationwide, one of the biggest high street financial providers in the UK. Nationwide has been working with ACI Worldwide for over 30 years and currently uses ACI’s BASE24 eps solution to power an estate of around 700 ATMs across the UK.
Amazon & Whole Foods: A Game-Changer for Customer Experience
The estimated $700-billion-dollar grocery business recently got a jolt when Amazon announced its intended purchase of Whole Foods Market. With more than 450 stores in the U.S. and UK, Amazon will be plunging head first into the physical world of commerce.
SleepAtNightability – Why We Must Not Forget The Fundamentals of Payments
When I saw this quote on Twitter, I literally LOL-ed, mainly because it’s so true (thanks to James Wester & Sam Maule). Indeed the ’boring’ in payments exists for good reason; when it comes to peoples’ money, you can innovate, but you cannot forget the fundamentals. The basics may be boring, but the lesson there is that they are vital.