Alternative Payment Methods like PayPal, GooglePay, ApplePay, and Venmo are now ubiquitous in almost all commerce globally. Still, first and third-party debt collections agencies haven’t adapted their payment strategies to accommodate this payment trend.
Here are two reasons why third-party agencies must adapt their payment strategies to accommodate these trends, or risk losing revenue to businesses who offer a more convenient payment method for consumers:
# 1 – Convenience for Consumers
Convenience is critical to getting consumers to make payments. Self-service has been the mantra in first and third-party debt collections for the last half-decade, and that’s great! One way to improve an already comprehensive online payment portal is through accepting PayPal, GooglePay, ApplePay, and Venmo. It removes a barrier for consumers who don’t have traditional bank accounts or credit cards, and providing more ways to pay will mean receiving more payments.
# 2 – Your (and your client’s) Bottomline
Lots of agencies claim to be “digital first” or even “digital only.” But agencies who adopt cutting edge digital payment offerings will truly stand out ahead of their competitors when it comes to having an effective digital strategy. It’s proof that you’re using the latest technology to guarantee the best possible collections results for your business and your clients.
Plus, and this is critical, as the debt collection market starts accepting PayPal, GooglePay, ApplePay, and Venmo, etc. as part of a standard payment strategy, agencies who have elected not to offer consumers those payment options will have lower success rates in answering RFPs.
So how can third-party agencies best identify and integrate those alternative payment methods into a larger payment system? Here are the first three steps:
Know your consumer. It seems like a no-brainer, right? The answer to this question will likely be in the type of debt you service. It’s critical to understand who your consumer is, what they want, and how they want to pay for what they want.
Know your APMs. There are a wide array of new payment options, but it’s not one size fits all. One size fits some. Figure out which options pair well with your business and your consumer base. Again, this will largely depend on the type of debt you are collecting and your consumer’s preferences.
Know your technology. Implementation is paramount. You want to offer your consumers a frictionless payment platform that integrates their favorite payment methods. Often, this is the hardest step. One way to ensure a seamless implementation is to invest in payment technology that can work with any alternative payment method.
First and third-party agencies must start to prepare now in order to avoid falling behind when it comes to market share and revenue. Selecting the right payment provider is critical to your success in integrating the right alternative payment methods solutions for your business.