Just Pay It Convenience
Just Pay It Convenience
R. Braden Short Vice President, Biller Solutions ©2009 Metavante Corporation. All rights reserved worldwide.
Agenda
Current Market Trends What Are Convenience Payments? Why Would a Consumer Pay a Fee? Why Offer Convenience Payments? Why Metavante’s Convenience Fee Offering? Questions & Answers Three Things to Remember!
2
Current Market Trends – Biller & Consumer
3
Biller Trends – Biller Direct Biller Direct Services Continue to Attract More Payers than Bank Sites ‒ Biller Direct Can Offer Detailed / Summary Bill Presentment ‒ Biller Direct Can Provide Confirmation of Payment ‒ Biller Direct Can Offer Multiple Payment Methods
Source: Paystream Advisors Inc. Feb 2009 4
Biller Trends – Payment Volume
Source: AITE Group. 2008 5
Biller Trends – Consolidation Single Platform to Support Payments from Multiple Access Points ‒ Web ‒ Phone ‒ Call Center ‒ Walk-In
Single Platform for Reporting, Reconciliation, and Customer Support
Reporting, Reconciliation, Support 6
Consumer Trends – Goals Convenience – Access bills and make payments anytime anywhere Control ‒ Control the timing of payments ‒ Receive confirmation of payment ‒ Keep track of disputes, exceptions
Cost Savings, Cash Flow Management ‒ Receive timely notification of bills due, payment status ‒ Avoid late charges or other fees (e.g. reconnect charges) ‒ Qualify for discounts by paying on time, online
7
Consumer Trends – Choice Consumers choose a channel and a method of making payments, depending on the type of bill they are paying Channels: ‒ Web ‒ Phone ‒ Call Center ‒ Walk-In ‒ Mail
Methods: ‒ ACH ‒ Credit Card ‒ Debit Card Source: Paystream Advisors Inc. Feb 2009 8
Trends – Biller & Consumer Two main factors currently driving behavior: 1. The Economy… ‒ Increased pressure to reduce costs ‒ Eliminate paper bills, postage ‒ Reduce customer service costs ‒ Competitive pressure to be online ‒ Increase electronic transactions ‒ Reduce DSO
Source: Tower Group 2008
9
Trends – Biller & Customer 2. The Environment ‒ 34% of consumers said they switched to electronic statements to reduce their impact on the environment ‒ 43% of consumers said they are more likely to do business with companies they perceive to be green
Source: Javelin Strategy & Research. June 2008
10
What Are Convenience Payments?
11
Convenience Payments Ability to pay a bill via credit or debit card for a fee ‒ Though convenience payments constitute just about five percent of the consumer payments menu today, they are the fastest growing component with a five-year CAGR in excess of 32 percent and are expected to increase to more than 10 percent of payment transactions in three years. Source: 2009 PayStream Advisors, Inc.
12
Why Would a Consumer Pay a Fee?
13
Why pay a fee? Panic Pay ‒ Research reveals that more than 35 percent of U.S. consumers have initiated a convenience payment at one time or another to make an expedited payment © 2009 PayStream Advisors, Inc. ‒ Avoid late fees ‒ Protect service and credit rating
14
Why pay a fee? Simple Convenience ‒ Online, no postage, comfort of home…
15
Why Offer Convenience Payments?
16
Why Convenience Payments? Credit & debit cards are the fastest growing payment choice Demanded by customers
17
Why Convenience Payments? Credit & debit cards are the most expensive payment type for billers to accept ‒ Charging a fee helps eliminate expense!
Source: Aite Group
18
Why Convenience Payments?
Ability to meet customer demand New payment channel Reduce DSO Zero-cost model
19
Why Metavante?
20
Case Study – Tampa Electric Investment Summary Prior to 2006 ‒ Presentment & Payment application ‒ ACH Only ‒ $432,000.00 annual cost
Implemented Just Pay It Convenience in 2006 ‒ Presentment & Payment application ‒ New channel – One-Time Payments for Credit Card ‒ $4.95 per payment – end customer funded
Total Savings to Date….. $1,296,000.00
21
Just Pay It Convenience
Zero cost investment Free eBill presentment Meet Customer demand Speed to market
22
23
Three Things to Remember! 1. Ability to accept credit & debit cards as a payment type 2. Zero-cost investment model 3. Free eBill presentment
24
25
R. Braden Short Vice President, Biller Solutions ©2009 Metavante Corporation. All rights reserved worldwide.
Agenda
Current Market Trends What Are Convenience Payments? Why Would a Consumer Pay a Fee? Why Offer Convenience Payments? Why Metavante’s Convenience Fee Offering? Questions & Answers Three Things to Remember!
2
Current Market Trends – Biller & Consumer
3
Biller Trends – Biller Direct Biller Direct Services Continue to Attract More Payers than Bank Sites ‒ Biller Direct Can Offer Detailed / Summary Bill Presentment ‒ Biller Direct Can Provide Confirmation of Payment ‒ Biller Direct Can Offer Multiple Payment Methods
Source: Paystream Advisors Inc. Feb 2009 4
Biller Trends – Payment Volume
Source: AITE Group. 2008 5
Biller Trends – Consolidation Single Platform to Support Payments from Multiple Access Points ‒ Web ‒ Phone ‒ Call Center ‒ Walk-In
Single Platform for Reporting, Reconciliation, and Customer Support
Reporting, Reconciliation, Support 6
Consumer Trends – Goals Convenience – Access bills and make payments anytime anywhere Control ‒ Control the timing of payments ‒ Receive confirmation of payment ‒ Keep track of disputes, exceptions
Cost Savings, Cash Flow Management ‒ Receive timely notification of bills due, payment status ‒ Avoid late charges or other fees (e.g. reconnect charges) ‒ Qualify for discounts by paying on time, online
7
Consumer Trends – Choice Consumers choose a channel and a method of making payments, depending on the type of bill they are paying Channels: ‒ Web ‒ Phone ‒ Call Center ‒ Walk-In ‒ Mail
Methods: ‒ ACH ‒ Credit Card ‒ Debit Card Source: Paystream Advisors Inc. Feb 2009 8
Trends – Biller & Consumer Two main factors currently driving behavior: 1. The Economy… ‒ Increased pressure to reduce costs ‒ Eliminate paper bills, postage ‒ Reduce customer service costs ‒ Competitive pressure to be online ‒ Increase electronic transactions ‒ Reduce DSO
Source: Tower Group 2008
9
Trends – Biller & Customer 2. The Environment ‒ 34% of consumers said they switched to electronic statements to reduce their impact on the environment ‒ 43% of consumers said they are more likely to do business with companies they perceive to be green
Source: Javelin Strategy & Research. June 2008
10
What Are Convenience Payments?
11
Convenience Payments Ability to pay a bill via credit or debit card for a fee ‒ Though convenience payments constitute just about five percent of the consumer payments menu today, they are the fastest growing component with a five-year CAGR in excess of 32 percent and are expected to increase to more than 10 percent of payment transactions in three years. Source: 2009 PayStream Advisors, Inc.
12
Why Would a Consumer Pay a Fee?
13
Why pay a fee? Panic Pay ‒ Research reveals that more than 35 percent of U.S. consumers have initiated a convenience payment at one time or another to make an expedited payment © 2009 PayStream Advisors, Inc. ‒ Avoid late fees ‒ Protect service and credit rating
14
Why pay a fee? Simple Convenience ‒ Online, no postage, comfort of home…
15
Why Offer Convenience Payments?
16
Why Convenience Payments? Credit & debit cards are the fastest growing payment choice Demanded by customers
17
Why Convenience Payments? Credit & debit cards are the most expensive payment type for billers to accept ‒ Charging a fee helps eliminate expense!
Source: Aite Group
18
Why Convenience Payments?
Ability to meet customer demand New payment channel Reduce DSO Zero-cost model
19
Why Metavante?
20
Case Study – Tampa Electric Investment Summary Prior to 2006 ‒ Presentment & Payment application ‒ ACH Only ‒ $432,000.00 annual cost
Implemented Just Pay It Convenience in 2006 ‒ Presentment & Payment application ‒ New channel – One-Time Payments for Credit Card ‒ $4.95 per payment – end customer funded
Total Savings to Date….. $1,296,000.00
21
Just Pay It Convenience
Zero cost investment Free eBill presentment Meet Customer demand Speed to market
22
23
Three Things to Remember! 1. Ability to accept credit & debit cards as a payment type 2. Zero-cost investment model 3. Free eBill presentment
24
25
