Six payment options that will help increase profits:
- Phone (IVR)
Did you know that 50% of shoppers will abandon their purchase if their preferred payment method isn’t available? Having multiple payment options is vital to providing a great borrower experience. When your business offers various payment options it gives customers the control and convenience they desire, while making your business appear more professional and trustworthy. It is a great way to increase your profits, conversions, and customer retention. Currently, many different payment methods exist, but here are six that will help you increase your profits:
There are many benefits to ACH payments. They are secure, convenient, process quickly and since they are electronic they are easy to track. Because ACH payments are processed in large batches of both credit and debit transactions, it lowers the cost of standard of processing payments. According to NACHA the average cost is around $0.55 per transaction. Over ten million Americans don’t have a credit card to make online payments with so ACH payments allows these people to have a safe, enjoyable online experience. An added bonus is that most of the time ACH payments are set up to be automatic which guarantees you’ll get your money.
ACH is a great way to make a safe payment, but not everyone will feel comfortable giving out their banking information. Credit cards are a good alternative for a convenient and secure payments but do not require customers to give more information than they’re comfortable with. Also, based on the customer’s credit score, you can get an indication of whether or not they are in the habit of making payments on time and in full.
Today, having a checking account and a debit card is a necessity. Because most people have a debit card, it provides a straightforward and convenient way to make payments. And unlike a credit card, there aren’t as many fees involved. Debit cards allow a customer to make payments in the comfort of their own home without any hassle.
Some people feel more comfortable getting on the phone and speaking to someone for support or to make a payment. Talking to another person can help alleviate confusion, it can help build trust, and it can help form a connection between you and your borrowers. Although making a payment over the phone isn’t as convenient or straightforward as ACH, credit, and debt, it does allow for the opportunity to develop a better relationship with your customer. Convenience is vast, but customer service also plays a significant role in customer retention and satisfaction.
This is typically an inclusive way to send promotions; however, some people may like using mail to send their payments via check or money order. Although this might not be the most used option, having this option available helps eliminate friction. Since you cannot expect everyone to have a credit or a debit card and some people feel more comfortable using checks, this option will likely come in handy more often than you may expect. And, the less friction there is for a customer, the higher the chance is that they will make their payments on time.
Cell phones have become an appendage of who individuals are; we are regularly checking our phones and don't know what to do with ourselves if we aren't. Forbes reported that SMS messages have an open rate of 98%, with approximately 90% of those individuals who open the messages reading them within three seconds of receipt. Using texting or having the available option increases how many of your customers will see their payment reminders, helping them make their payments on a timelier basis.
Online payments are a billion-dollar industry, and the best way for you to capitalize on this ever-growing market is to eliminate friction by providing as many payment options as you can. According to a YouGov survey, 40% of people said they would feel more comfortable purchasing from an online merchant that offers multiple payment options, which translates to lenders too. People will feel more comfortable taking loans from a company that allows them multiple options for paying back the loan. Providing your customers with payment options creates customer convenience, it can help reduce delinquencies, and help your company get paid in a timely matter.