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Consumers today are accustomed to seamless, flexible and personalized payment experiences in many aspects of their lives. That simplicity is often a powerful incentive that keeps people coming back. Bill payment, however, has lagged behind. Limited options and minimal personalization leave a gap in the customer experience that could impact the bottom-line for billers and lenders.
Why is the payment experience so important?
Consumer payment behaviors and expectations have evolved dramatically in recent years. Yet bill pay still typically requires navigating a rigid bank or biller website that people often find frustrating.
According to PayNearMe’s 2024 consumer research, 60% of survey respondents wish paying loans was easier, signaling a strong demand for more user-friendly processes. Perhaps more importantly, nearly 80% of consumers said they would be likely to use the same lender again if they have an exceptional loan payment experience.
Embracing digital wallets
One critical consideration for billers is keeping pace with how consumers prefer to pay. Digital wallets have become a mainstream favorite, and offering that capability may be essential for driving growth and staying competitive. The survey found that 59% of people would be very likely or likely to pay their loans with digital wallets, nearly double since the 2021 survey.
Related reading: How digital wallets are reshaping the payments landscape
Furthermore, many consumers now maintain a stored balance in their digital wallet for future use, and 38% of those surveyed noted a desire to pay a bill or loan with their existing balance.
The power of personalization
Personalization is increasingly important in customer experiences. PayNearMe’s survey revealed that nearly 70% of consumers think it’s important to have a personalized experience where the billing platform recognizes them and tailors information to their account.
Personalizing the payment experience to drive repeat business
Many consumers now expect personalized interactions with businesses, and it’s becoming the bar for how they evaluate the overall customer experience. That includes payments, where personalization can simplify processes in ways that matter to payers.
For example, 80% of people surveyed said it’s important to have their account details (e.g., loan number, amount due, due date, etc.) pre-populated in a payment screen. Having to remember account numbers and repeatedly type in details every month is a top pain point.
Additionally, consumers have grown accustomed to receiving helpful recommendations as part of a personalized experience, and they want that for bill pay as well. Consider when you purchase a book on Amazon and the next time you login, Amazon presents you with recommendations for related reading. 60% of people would like to see personalized recommendations after completing a payment, such as suggesting they sign up for autopay or take advantage of refinancing options.
It’s a sharp reminder that personalizing payment experiences is becoming a key success factor for any business—particularly those built around recurring billing. Personalization is an investment that may pay off in driving repeat business and referrals. In fact, 69% of people surveyed said they would be likely or very likely to recommend a lender that offers a highly personalized experience.
How can billers take action to get ahead?
Many billers and lenders delay investment in the latest payment technologies because the status quo still meets basic needs. However, as consumer demands and competitive markets rapidly evolve, it’s never been a better time for organizations to leverage payments innovation.
We’re in a new era where choice, convenience and personalization are king. For billers and lenders, that’s about more than products—it’s the payment experience. Partnering with a modern payments platform provider can empower businesses to significantly improve outcomes by delivering the customer experience that people prefer, while dramatically enhancing operational efficiency.
Billers can personalize payment screens based on each customer’s payment behaviors and preferences, offer more ways to pay (from ACH and cards to digital wallets and cash at retail locations), and boost autopay enrollment by offering flexible options for scheduling payments.
Payment innovations can help billers optimize the payment experience while driving repeat business. It’s a powerful win-win for billers and their customers. To review PayNearMe’s consumer research report, click here to download your copy.
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