4 Payments Technologies to Look Out For

Payments are currently transitioning from traditional to digital processes. A recent Capgemini report on consumer payment demand in 2019 describes the payments industry as quickly transforming from an infrastructure of cards and terminals to a system made up of mobile devices that include smart watches, phones and even Internet of Things-enabled cars.

Payment methods are changing, and recent evolutions mean those who fail to adopt new technologies risk losing time, money and business. Here is an outline of four industries that have previously been slow to adopt payment innovation and a forecast of the developments I expect to see this year.

Omnichannel Now a Priority for Credit Unions

Despite many people being aware that credit unions often offer preferred loan and credit card rates over banks – and boast lower/fewer fees – there are still many myths surrounding membership. With the existence of confusion concerning eligibility, technology and payment services, many people who could prosper from membership are often reluctant to take the first step.

In order to dispel these myths and attract a younger member base, credit unions need to prioritize the member experience. We are starting to see credit unions concentrate more on their service offerings with the knowledge that providing a wide selection of payment options can improve member service. Technology is moving from being an afterthought to the first thought, and the ability for members to make payments or access their account anytime from their mobile device or computer is a benefit they will particularly appreciate.

ARM Must Clear Up Convenience Fee Uncertainty

Omnichannel expectations are becoming essential for driving revenue in accounts receivables management (ARM), but simply offering a wide range of payment methods isn’t enough. Just because a member chooses to receive a notification of an outstanding bill via email doesn’t mean they intend to settle the bill online. It may be more convenient to pay over the phone or even to negotiate a payment plan with an agent. Therefore, the consumer must be able to move freely between channels and payment methods. Those who innovate here in 2019 will gain ground over less-prepared competitors.

Less of a technology trend and more of an industry-wide debate is the continued confusion around no-fee to biller models and convenience fees. Respondents who participated in the BillingTree ARM study were divided more than ever before in their attitude toward convenience fees (see the accompanying chart).

This shows no signs of slowing down in 2019. The onus is on card issuers to impose a change that will settle the confusion once and for all.

B2B Realizes ePayables Potential

As we move through 2019, increasingly digitized channels will begin to have a significant impact on commercial payments. Consumers are accustomed to paying bills and making purchases with their credit card online, over the phone and even directly from their mobile device. Yet the B2B payment sector continues to fall behind when it comes to payment channel innovation. The benefits are obvious – speedy handling of multiple payments, heightened security, and integration with existing business management and accounting software.

Recent Mastercard research revealed more than a third of businesses plan to reduce their use of paper checks in the future, with over 40% saying they are too slow and require excessive manual paper work. Watch this space in 2019 as more businesses ditch paper and realize the efficiency benefits of moving to ePayables.

Health Care Realigns to Digital Preferences

Health care payments continue to be an area of focus for revenue cycle managers and C-level industry executives. Both providers and patients need to adjust to high-deductible insurance plans, value-based care price transparency and public health care programs such as Medicare and Medicaid.

For providers, payment priorities are expected to change during 2019, as a Q4 2018 study by BillingTree showed providers are concentrating more on enhancing the patient payment experience with technology. Agent-assisted and online payments currently dominate the revenue cycle management process, but text-based notification and billing is now the fastest growing channel being explored.

Over a quarter of all providers are set to adopt text notifications for bill payment/notification in 2019. This number more than doubled from last year’s survey, which suggests that this is a rapidly emerging channel. Expect this to continue as text-based payments gain wider adoption as an immediate, convenient and compliant option that suits both providers and patients.

A Critical Year Ahead

2019 is an important year for health care providers, B2B payments, credit unions and ARM organizations. Those who are able to adapt the most quickly to technology disruption could reap the benefits of faster payments, increased revenue and more satisfied customers or members.

Dave Yohe is Vice President of Marketing for BillingTree. He can be reached at dyohe@mybillingtree.com.