Financial institutions and customers benefit from expedited payments
According to a recent study conducted by Javelin Strategy & Research, financial institutions can benefit significantly from expedited payment processing systems, which will also improve customer satisfaction.
The report recommends banks and other financial institutions invest in expedited payment processing solutions and encourage customers to pay the fee required for participation to help drive savings for the bank and long-term savings for the consumer.
In order to encourage consumers to accept the payment fee for an expedited payment, Javelin Strategy & Research said banks should consider the differences in what consumers spend on expedited payments and how much they could lose due to late fees and other charges that can be avoided with expedited payment processing systems. The report found United States consumers spent approximately $1 billion on expedited payments in 2010. However, these consumers could have lost as much as $4.8 billion in late payment fees, the report found.
The report also said there is a significant market for financial institutions to gain on banks in expedited payment processing. Currently, just 7 out of 40 banks offer expedited payment services. As a result, the report said financial institutions that move quickly to adopt the payment processing solution could capitalize on banks' conservative behavior.
"To remain competitive, banks need to fnd new revenue sources. To stay relevant, banks need to respond to online and mobile consumers’ need to make expedited payments. Focusing on expedited payments enables financial institutions to meet these two objectives. Expedited payments can - and should - be positioned as a value-added service. Effectively marketing expedited payments enables financial institutions to establish a profitable revenue stream, while meeting consumers’ needs to pay bills on time and avoid late fees," said Beth Robertson, director of payments research at Javelin Strategy & Research.
Advanced payment processing solutions can help businesses and financial institutions provide advanced customer service. Recently, DICE Corporation, a company that provides enterprise class monitoring, accounting and mobile sales management services, announced its investment in a new payment processing solution designed to make payments easier for its customers.
The solution is being provided by BluPay, which integrated their payment processing software with DICE's alarm software to give customers a secure and easy way to make payments. The main focus of the new software configuration is streamlining data entry, making payment processing faster and easier to manage.