Automatic payments remain a favorite among bill payers, especially younger generations. Though many payers fear there may not be enough money in their accounts to cover bills, they still prefer being automatically enrolled in autopay processes.
In addition, affluent and urban households are more likely to enroll in automatic payment solutions, according to The 2025 State of Online Payments from InvoiceCloud. Overall, most people use automatic payments for at least some of their recurring bills.
It’s not just that younger individuals are more likely to be enrolled in autopay—they also prefer automatic enrollment in paperless billing far more than baby boomers. The data suggests that this presents a substantial opportunity for growth if billers take steps to proactively enroll their payers. One in five respondents who are not enrolled in paperless billing cited the lack of an enrollment option as the primary reason.
Convenience and Concerns
Convenience remains the primary driver of payers’ digital payment preferences. However, financial concerns continue to hinder enrollment in autopay.
Among those who are not enrolled in automatic payments, over a third cited financial constraints as the main reason for not signing up. In contrast, security concerns were far less significant. Many respondents hesitant to enroll in autopay expressed a preference for maintaining control over their payments, with comments like, “I like to know my balance due before funds are automatically removed from my account” as opposed to “I am concerned about storing financial information online.”
Autopay is also appealing because many payers still encounter challenges when making online payments manually. These difficulties are becoming increasingly common, with more than 70% reporting issues when paying bills digitally—an increase of 12% from last year’s survey. The most frequently cited issues included forgetting login credentials, limited payment options, or a lack of payment confirmations to remind them of due dates. Autopay can effectively address all of these concerns.
The Cellphone Solutions
In addition to reducing payment interruptions, autopay provides other benefits as well. Mobile carriers like Verizon and T-Mobile, for example, are increasingly steering their customers toward autopay.
It also allows them to offer incentives to customers who use preferred payment methods. T-Mobile offers a $25 monthly autopay discount, but only if the customer uses a debit card or bank account. AT&T reduces the monthly discount by $5 per line if the customer continues to use a credit card for autopay.
