How To Shift To Remote Payments

Payment at a distance has become a priority as a result of the Covid-19 pandemic. Here are five ways to make that shift go smoothly.

The Covid-19 pandemic has transformed the way we live and work in countless ways, and that includes how we pay our bills. Consider a recent MasterCard survey in which more than 51% of U.S. consumers said they were using some sort of contactless payment. Some 30% started doing this due to Covid-19.

Remote payments are on the rise as businesses seek contactless payments, as well as ways to enable payments to be made from a distance, to protect customers and employees alike. Remote payments are a win-win. Customers win through greater flexibility to pay when, where, and how they prefer. Businesses, in turn, win through saving the time, risk, and labor costs associated with in-person payments.

Yet, if you’re feeling ill-equipped and overwhelmed at the breathless pace of this remote-payment trend, you’re not alone. We’re seeing years of adoption trends taking place in a span of months. That means companies must act quickly to sharpen their game, moving from a short-term survival mode to a comprehensive long-term strategy. As you do, here are five strategies for a successful transition to remote payments:

1. Give customers as many self-serve options as possible, including offsite cash payments

Seventy-eight percent of cash-preferred customers still want or need to make bill payments using cash, even during Covid-19, according to PayNearMe user data. But that doesn’t mean they have to pay with cash at your branch location. Lenders are enabling customers to pay their bills with cash at the neighborhood retail locations where they regularly shop, like 7-Eleven and CVS Pharmacy stores. They simply use a reusable bar code sent by the lender via text message.

Another growing group of customers prefers paying bills using a digital wallet such as Google Pay or Apple Pay, or by transferring money via the automated clearing house network. Of course, credit and debit cards remain very popular forms of payment. Your system will need to accommodate all of these payment types if you hope to shift to a remote-pay environment.

Finally, make sure your payments platform is compatible with all digital channels, including phones, tablets, and computers, and even interactive voice response for phone-in payments. Your customers will likely have different comfort levels with the different channels used for making remote payments, based on their age, education, and experience.

In a survey by the Pew Charitable Trusts, 56% of respondents said they had paid a bill by mobile phone in the past year. Yet 74% of those who used mobile payments were members of Generation X or younger (born after 1964), while 62% of those who used credit cards to pay were Baby Boomers or older (born between 1946 and 1964).

By offering all available options, you’re more likely to boost adoption of remote payments from all segments of your customer base and improve customer satisfaction in the process.

2. Walk customers through the transition

Some consumers have adopted remote payments on their own, but most are creatures of habit and so are averse to change. That means shifting their payment habits will require two things: suggestion and support.

First, businesses should take every opportunity to tell their customers that they offer online and automatic bill payment options, and that mobile payment and autopay are beneficial. Put that suggestion on every bill, every email, and every push notification. Have customer-service representatives mention it every time they interact with a customer: “May I help you set up automatic payment for your convenience?” or “Did you know you can add this payment to your Apple or Google wallet?”

If the customer shows interest in remote payments, make sure the process is easy, with as few steps as necessary. Many lenders have taken to printing a QR code on every bill, which allows the customer to scan the code with their phone and pay immediately with a few simple clicks.

For customers accustomed to calling your business to pay by phone, a service representative can offer to push a text or email to the customer with a link to register for autopay. The agent should stay on the line while the customer completes and verifies the process to make sure it goes smoothly.

As customers build trust in remote payments and feel empowered to complete their own transactions when, where, and how they prefer, they will come to appreciate the freedom and convenience. Your task is simply to convince them of that truth and get them started in that new practice.

3. Engage with your customers in the ways they prefer

Consumers are bombarded with messages and marketing every day, on email, television, and social media. Stand out by providing communications selectively and in the manner they prefer. Do they want to receive communications by email, text, or mail? Do they find push notifications helpful? Make it easy for them to choose their preferences.

Then, tailor communications to different scenarios, using the appropriate messaging and tone. For instance, one reminder alert 15 days before payment is due, another if payment is overdue, and so on. Translate communications into the customer’s native language as appropriate. This is par for the course in today’s multicultural society.

Again, in every communication, offer options for self-service and make that process easy. When customers know your communications apply to them and make their transactions easier, they will pay attention when your messages arrive.

4. Help remote workers remain productive

If your customer-care centers have moved partially or completely to home-based operations, you must consider how to support your customer-service representatives along with your customers.

Make sure your workers have all the tools and training they need to excel and remain productive, even from the safety of their home offices. That includes a payment system robust and smart enough to accommodate different scenarios (missed payments, insufficient funds, partial payments, and so on).

The interface should walk agents through solutions without delay or confusion. Clean up the user interface so your staff works with the smallest number of fields necessary to complete the tasks, and provide them with easy-to-follow decision trees. The workflow should drive your employees through the process in a smooth and logical way.

By making your employees’ jobs as easy as possible, you’ll reduce their stress and equip them to do their best work with customers.

5. Consider remote-specific compliance issues

Staying PCI- and Nacha-compliant in a remote-pay environment offers some new challenges, especially when your staff is no longer in a single, supervised call center. Here are a few ways to reduce your compliance scope:

– Have agents encourage self-pay so they don’t need to take payment information over the phone. They can offer to send a link in an email or text, and stay on the phone while the customer completes the transaction. This avoids the challenge of protecting customer information in a highly dispersed work environment, ensuring agents never touch sensitive customer payment information.

– Establish an interactive voice response system to prompt self-pay for willing customers. A well-developed IVR can help customers complete a payment by phone without talking to a live representative.

– Have customers authorize autopay registration via email or text. If the agent walks the customer through autopay setup and then sends the customer an electronic message to authorize independently, the agent does not have to record the call. This protects your company from violating Nacha operating rules required for ACH payments.

Implementing a comprehensive remote payment system offers many opportunities to streamline operations, reduce overhead, and improve customer satisfaction, all while preparing for what may be continued Covid-19 uncertainties.

Remember that your payment-platform vendor is an excellent resource to help you adapt your systems and procedures. With their help, you can build long-term, positive relationships with your customers using the best technology available. It’s a necessary strategy in today’s increasingly self-serve marketplace, and a worthy investment in the future of your company.

—John Minor is chief product officer at PayNearMe Inc., Santa Clara, Calif.