Atomic’s Bill Payment App Opens to Banks and Fintechs

The potentially lucrative bill-payment market has a new entrant to help banks and fintechs capture some of these transactions. Dubbed PayNow, the new service from Atomic FI Inc. can help banks and fintechs drive engagement and loyalty with their customers, it says.

Launching initially with a mobile and Internet provider, PayNow is embedded into a bank or fintech app. Consumers can connect their bill pay companies, such as Internet or mobile providers, review upcoming bills and balances, and initiate payments directly with the billers by automated clearing house or credit and debit cards without leaving the parent app, Atomic says.

U.S. households spend a median of $4,168 on utility-bill payments annually, reports doxo, a bill-payment company. That is approximately 5% of annual household income.

Salt Lake City-based Atomic provides embedded financial connectivity and is used by more than 195 FIs and fintechs. It developed PayNow after an analysis of user behavior across its payment-switching data. “Nearly 20% of all payment switches happen within two days of a bill’s due date. That number rises to 40% for mobile and internet bills due within five days,” Atomic says in a statement.

Many consumers use their banking app to help decide when and how to pay a bill. PayNow, Atomic says, can help keep the consumer in the banking app, making for potentially easier transactions in a trusted app.

For banks and fintechs, incorporating PayNow also can provide an opportunity for it to introduce other services, such as cash advances, credit-line access, or payment flexibility, Atomic says. In all, according to doxo, U.S. households spend $532 billion annually on utilities, such as electricity, natural gas, waste and recycling, and water and sewer bills.