A New Age of Billing and Payments: Mobile Wallets, AI Technology and Bill Sharing
Growing up in a digital world, Millennial and Gen Z consumers are always connected – and expect immediate access to information. ACI Speedpay Pulse, a consumer billing and payments trends and behaviors survey of more than 3,000 U.S. adults (responsible for two or more household payments a month), found that 99.3 percent of young consumers (defined as those between the ages of 18 and 34) own a smartphone.
Smartphones are now ingrained in the everyday lives of young consumers, from social media to online shopping. Daily usage means these consumers are comfortable with the technology and would be more willing to try new and different services on their device, including paying a bill.
For companies, understanding this audience is critical for the future, and they must update their billing and payment platforms to meet these evolving demands.
The growth of mobile wallets
Because young consumers are already beginning to use mobile wallets in their daily lives, companies have an opportunity to adapt to the preferences for smartphone mobility by integrating mobile wallets into their bill payment platforms. According to our survey, these consumers—more than any other age group—are more likely to pay a bill through a mobile wallet, with 49.7 percent already having used a mobile wallet for a bill payment. In addition, 41.9 percent would consider using a mobile wallet to pay a bill in the future. Comparing this year’s data to last year’s ACI Speedpay Pulse, the overall proportion of consumers who would consider using a mobile wallet is increasing, emphasizing the need for companies to explore mobile wallet options for their customers.
Companies should keep in mind that while there is a greater percentage of consumers willing to use mobile wallets, there are some reservations among the younger consumer age group when it comes to completely embracing mobile wallets. The ACI Speedpay Pulse survey found that among the 18 to 34 age group, the main concerns for paying a bill through a mobile wallet include lack of security and reliability. Companies should therefore educate consumers on their mobile wallet capabilities in order to expand their services and encourage adoption.
Increasing interest in artificial intelligence
Compared to other age groups, young consumers have a greater belief (29.3%) that AI-powered solutions such as chatbots and virtual agents will help improve the customer bill payment experience. As AI technology continues to evolve and develop within the payments industry, younger consumers believe that AI-powered solutions will benefit them with speed, convenience and simplicity. AI solutions provide them with the instant connection and response that they are accustomed to in a connected digital world.
The integration of chatbots and virtual agents eliminates wait time associated with making a phone call or getting in touch with a representative. Companies can elevate their AI-powered solutions for consumers by focusing on the three main benefits of speed, convenience and simplicity and consistently—and communicating how this advanced technology can enhance their bill payment transactions.
Additionally, AI solutions can help streamline processes and take on more routine tasks. Companies should take advantage of the increasing interest in this technology and begin incorporating AI-powered solutions into their platforms with automated bill services. This could deliver a competitive advantage.
Accounting for split and shared payments
A growing trend among young consumers that are gaining – or have gained – financial independence is the act of splitting bill payments. Of consumers aged 18 to 34, around a quarter (25.2%) split bill payments through a separate transaction using peer-to-peer payment platforms, such as Venmo. While this trend is still developing, companies can get ahead of this change in the industry and begin exploring opportunities to increase flexible payment options. By looking ahead, companies can be prepared for the growing demand for split and shared bill payments among consumers.
As the share of bills and payments increases across younger consumer demographics, it will continue to play an active role in shaping the payment industry’s services and capabilities. Companies should update digital and mobile offerings to meet these consumers with the speed and convenience they expect from their providers. Simultaneously, service providers can distinguish themselves as leaders in customer service by innovating alongside their consumers with the latest technologies.
Learn more about next-generation billing and payment preferences: Download the ACI Speedpay Pulse Trend Report
Related Blog Posts
Social, Mobile and Instant Payments: How Digital Payment Overlay Services Will Power Up P27
For some years now, the Nordics region has been a global-standard bearer for payments and financial services innovation. Sweden has for many years been a leader in the progressive move towards cashlessness, championing the range of efficiencies that it brings. Major payments innovators like Klarna, FundedByMe and iZettle are based in the region, rubber-stamping Stockholm as a genuine fintech hub. Analysts and insight leaders also regularly single the Nordics out as a genuine leader, in particular praising the collaboration between governments, regulators, financial institutions and businesses that has led to such fertile ground for financial modernization initiatives.
How to Meet ISO 20022 Migration Deadlines for Fedwire and SWIFT
Over the next decade, we will undoubtedly see huge shifts in how financial institutions throughout North America transact, whether domestically or across international borders. This will be driven not just by changing technologies, but also by regulatory events – such as the widespread adoption of financial messaging standards like ISO 20022.
How Can European Banks Meet the ISO 20022 Migration Deadlines for TARGET2 and SWIFT?
First published in 2004 – and already broadly used in some quarters – ISO 20022 is rapidly set to become the de facto standard for financial messaging around the world, replacing MT messages.
The Pathway to Global Real-Time Payments: What Will Be the Impact of SWIFT and ISO 20022?
The whole world is moving toward the ISO 20022 standard, and almost in unison. Globally, most major currencies are planning to shift to the new data-rich standard for either high-value payments or immediate payments (high value being global messaging via the SWIFT network or an RTGS scheme).
Digital Payments Overlay Services: Accelerating Real-Time Payments Growth
The global real-time payments landscape is transforming every day, as the world moves toward payments that offer a multitude of digital payment overlay services that drive consumer experience and adoption. But what are digital payment overlay services? They are ancillary services that often ride the real-time payments rails, and can be flexible, nimble drivers of innovation. These digital services – piggy-backing on the standard real-time payments rails – not only add value to core payments, but also bring about convenience and ease of use for all participants in the payments ecosystem.
Real-Time Payments: Global State of Play, Lessons Learned and How to Make Money
There is a lot of noise around real-time, immediate and instant payments. These interchangeable phrases are generally used to discuss the development and domestic rollout of non-card-based methods of payment that provide real-time notification of payment and fast settlement. So, given all of this ”noise,” where are we on the journey, what have we seen work (and not work) and can we make money from real-time payments?
Request for Payment and Other Real-Time Payments Trends That Will Shape 2020
In 2020, the conversation around real-time payments will increasingly be about what banks can do with real-time, as they move beyond setting up to support real-time payments schemes. New use cases will emerge – but there are a few main trends that are likely to shape the direction of real-time in the year ahead.
Nordic’s P27 Powers Ahead with Cross-Border Payments
P27 continues its accelerated journey to cross-border payments in the Nordic region, with an ambitious project scope and timeline. For banks, processors et al, this poses questions of prioritization. Payments players must identify their most pressing business needs, and what can be achieved with their current stack.
How India is Tackling the Challenges of Digital Payments Growth
India’s massive transformation from a cash-based society to a cashless society is underscored by the rise in fintech adoption and the growth of the Unified Payments Interface (UPI) platform, which is now processing more than one billion transactions each month.
Digital Overlay Services Unlock the Value of Real-Time Payments
The global payments industry continues to drive toward true real-time, with the potential opportunity for corporate banking often cited as the most lucrative.