People pay their bills late for numerous reasons even when they have the appropriate funds to make the payment. Fortunately, there are diverse payment options available that can help people pay their bills on time. But there are some things your organization can do to make payment processes easier and reduce late payments from customers.
Managing and paying bills is a tedious annoyance in our fast-paced world, and it can cause customers stress and anxiety. There are several challenges that consumers face when it comes to making payments including losing track of due dates and having to manually type in payment information. So, it’s important that companies follow these tips to simplify the bill pay process and reduce instances of late payments.
1. Automate payment reminders
While the best way for customers to avoid making late payments is to set up automatic recurring billing, not everyone prefers to pay this way. In addition to advertising the convenience of autopay, businesses can reduce instances of late payments by sending out reminders automatically when a customer’s due date is approaching.
Many innovative payment platforms offer providers the means to send out automated reminders at several different points during the billing cycle. You can even segment these messages to target chronic late payers or those who paid late last month, for example.
Custom links should be securely embedded into messages so that customers can be directed to their payment screen. Be sure to follow PCI guidelines in order to provide adequate privacy and security for customers keying in their payments online.
2. Create frictionless processes
Increased customer expectations for fast, easy, and frictionless payments leads us to our next tip for reducing late payments. Mobile-friendly payment options are becoming the norm and about half of payments are made using a mobile device.
Offer your customers touchless digital payment options like Apple Pay or Paypal to reduce the friction that customers experience when making payments. Instead of having to retype in account or card information each time a payment is due, digital payment options and mobile-friendly payments already have that information stored so that users can simply tap to pay.
Navigating poorly designed billing websites can be a deciding factor between making payments late or on time. You can also reduce friction during the payment process by making sure that you use a responsive mobile design for your website that is simple to navigate across many kinds of devices.
3. Promote digital payments
Although it doesn’t look like lawmakers are ready to implement a cashless society just yet, the response to the COVID-19 pandemic has caused many people to switch to digital payment methods. Paper statements can be printed with QR codes that take customers directly to their payment screen as a way of transitioning consumers toward electronic payments.
Many people have begun to utilize digital wallets because they are convenient to use and don’t require a lot of effort. That’s why it’s important to use a payment gateway that comes with critical features such as virtual terminals and recurring billing.
If you’re already capable of accepting digital payments, have you let your customers know? Be sure to promote digital payments wherever you can —in marketing, on bills, and at checkout are all good places to remind your customers of your frictionless payment options.
Payment technology has come a long way in a very short amount of time. In fact, the payment processing solutions market is expected to grow from its current value of $60 billion to over $140 billion by the year 2026. The increased adoption of e-wallets, growing demand across large enterprises, and supportive initiatives in the EU have created a secure online environment where consumers can easily and efficiently make payments.
Organizations should leverage payment technology and promotional strategies to transition customers to electronic payments and improve existing bill pay processes. Automatic reminders, frictionless processes, and digital payments promotion are all ways that businesses can help their customers make more of their payments on time.