Reduce your cost of invoicing with these three payment options
Bill presentment and payment processing continues to impact profits for many companies as it drains business resources and employee time. By many estimates, manual processing costs as much as $15 per invoice. Worse, the hands-on nature of paper-based billing and payment introduces countless opportunities for human error—and when mistakes occur, fixing the problems may cost more than $50 per invoice. The postage cost alone can reach $58,000 for every 100,000 invoices.
Moreover, customers now expect the convenience of digital payment options. More than four in five Americans used some form of digital payment in 2021, according to a recent McKinsey survey. Companies that provide digital options will win at improving customer satisfaction and increasing loyalty.
Consider these customer payment options to lower your bill pay costs while providing the modern payment options that your digital-first customers expect:
Automatic and Scheduled Payments
Give your customers the ability to set up scheduled payments with pre-determined amounts or to arrange for full payments to be made automatically whenever they are due. These features will reduce delinquency by encouraging on-time, in-full payments. They’ll also improve your company’s cash flow and reduce the time and resources to track down clients, process late fees and fix duplicate payments.
You can engineer a similar win-win by enabling customers to pay their bills with their phones. By meeting customers where they are and offering mobile payment, you’ll successfully transition them away from the expense of paper-based payments.
A growing number of consumers use digital wallet platforms such as Apple Pay® and Google PayTM, and 44% of those who use mobile payments paid bills with their digital wallets in 2021. The trend toward mobile bill payment is likely to increase in popularity: 36% of consumers surveyed said they would consider using mobile wallets to pay bills in the future.
Text-to-pay is another popular feature that drives digital adoption and reduces the costs of manual payments. Sixty-two percent of consumers under age 35 would always pay by text if they could but only 4% of small businesses offer it as an option, according to a 2020 study on payment options.
Interactive voice recognition (IVR)
Some customers will still want to call your business on the phone. Two-thirds of customers typically resolve their issues with a phone call, according to a recent survey. IVR (interactive voice response) answers calls and leads customers through automated prompts: sharing balance information, collecting credit card payments, and directing callers with billing concerns to live agents. The technology greatly minimizes the costs associated with inbound calls and ensures a faster, better experience for your customers with the convenience of 24/7 service.
Manual bill processing drives up company costs, ties up staff resources, and prolongs the time between billing and receiving payment. Digital bill pay streamlines the process while reducing errors, saving capital and accelerating cash flow—all while helping deliver the convenience and flexibility that customers demand. This combination of business efficiency and customer convenience promises to help strengthen your business for years to come.
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