Paper checks for ongoing consumer expenses such as rent, mortgage, utilities, and taxes are rapidly being replaced by electronic payment processing. Consumers expect to be able to pay bills online. Companies that to offer electronic payment options to their customers satisfy customer demand while increasing operational efficiency and improving cash flow.
A study by Hitachi Consulting found that, from 2001 to 2008, paper-based payments decreased from 78 percent to 38 percent of all bill payments, while electronic payments grew from 22 percent to 62 percent.
Consumers are comfortable with electronic bill payments. From 1999 to 2007, the number of online households in the U.S. that pay bills online rose from 3.6 million to 42.3 million in. With online payments, consumers pay their bill faster, avoid late payments penalties and easily track payment history.
In addition to improving customer satisfaction, companies offering electronic bill payments reduce the costs associated with processing paper-based payments, reduce exposure to bad checks, and help ensure payments are made on time. Recurring payments for customers provides a stable revenue stream by helping ensure on-time payments.
ACH payments are the perfect vehicle for online bill payment.
Interested in an ACH account?
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