Americans pay a lot of bills. Between rent, utilities, insurance, credit cards, and more, adults are paying trillions each year and the numbers are only continuing to climb. Most people are turning away from traditional methods and paying online with either their bank or a third-party app.
The Rise of Digital Bill Pay
Almost all companies offer a way to pay bills online. By 2022, it’s estimated that three-quarters of all bills will be paid digitally. This opens up huge business opportunities in the bill pay market.
Banks, however, aren’t a customer’s first choice when it comes to online bill payments. Billers and third-party companies offering the payment option are winning, especially when it comes to younger customers.
For banks to cash in on this idea, they need to make changes. Better online bill pay and engagement would mean more customer loyalty. Offering better bill pay options can also boost bank status.
A Big Opportunity for Banks
The volume of digital bill payment is increasing and roughly 50% of all bills are online or digital. By 2022, that number is predicted to rise to 75%. Customers prefer to pay bills through one-time or recurring payments online, but bank bill pay options are too basic and don’t appeal to younger customers.
In the end, Customers want secure and convenient payment methods and more options for managing their money online.
The bill pay market in the U.S. is growing quickly. Whether on a phone, a tablet, or a computer, technology plays a huge part in paying bills online and banks have a chance to capitalize on this opportunity by overhauling current payment options and appealing to their customer needs.