The Expansive Embrace of Expedited E-Payments

What do bills for cell phones, mortgages, credit cards, utilities, autos and insurance have in common? Consumers are broadly using expedited, electronic payment channels to pay these bills. To better understand its market, Fort Knox National Company, a leading provider of electronic payment solutions, commissioned a survey from Edgar, Dunn & Company to identify key consumer drivers and motivations for use of electronic payment services. The research identified forgetfulness - I simply forgot - as the reason why nearly 50 percent of survey respondents would be late making a payment. Other key reasons were cash flow and a host of personal issues, such as difficulty managing finances. Of those making expedited payments, 71 percent did so within three days of the bills due date, and most of those (21 percent) waited until the day the bill was due. Another 19 percent pay after the due date, but before a late fee is assessed, taking advantage of their billers grace periods. The payoff? Savvy consumers are holding onto their cash until the last minute, avoiding a late fee that typically runs between $20 and $49, which almost half of all expeditors surveyed are facing (49 percent). By understanding payer behaviors, we can better help our clients discover greater value in their remittance processes, said Mr. Paul Flanigan, chief marketing officer of Fort Knox National Company. When you consider that one in four consumers have made an expedited payment in the last year, you can clearly see why billers should be offering all payment channels and types, and doing it as easily as possible. At our company, that means not requiring enrollment or registration, a convenience factor that many consumers have eagerly embraced. Fort Knox National Company provides service offerings in all avenues of payment processing, including Automated Speech Recognition, customer service representative-based payments and Web payment options, with integrated reporting capabilities across all channels. Demonstrating that a majority of consumers are embracing technology to make expedited e-payments, more than half (52 percent) were made by phone, while almost one-third (31 percent) were Web-based payments, according to research findings. Looking at the entire body of research, only eight percent of those making expedited payments do so by rush delivery or overnight mail; only six percent use walk-up money transfer and/or wire services.