- 89% -- Consumers who want more real-time payment options from their digital banking experience1
- 80% -- Bill payers who prefer digital payment methods2
The Need for Modernized Repayment
Today’s lending landscape is dominated by nonbanks and neobanks. These non-traditional competitors are not relying solely on competitive interest rates to win greater market share.
As Brian Riley, Director of Mercator Advisory Group’s Credit Advisory Service notes, “The top reason that consumers choose to get a loan from an online lender instead of a bank is that lenders offer a better, more convenient experience than going to a bank.”
The Advantages of Paymentus Loan Payments
Loan Payments allows banks and credit unions to deliver the fast and flexible payment experience demanded by today’s borrowers. This powerful capability is offered through a responsive mobile and web self-serve payment portal. Borrowers can access their loans through a one-time guest payment experience or via Customer Portal, which offers AutoPay, saved payment methods, paperless eBills, and more.
Loan Payments also delivers maximum repayment flexibility through an expanded menu of payment options, including:
- Debit cards and ACH
- Apple Pay, PayPal, Venmo, and Google Pay digital wallets
- In-store retail cash payments accepted at Walmart, CVS, and many others
- Pay-by-Text and 24/7 chatbot
Loan Payments also makes it simple to send proactive notifications and automated reminders to ensure borrowers have everything they need to make their payments on time.
The Power of Modernized Repayment
Loan Payments usage data showcases the power of choice offered to borrowers. 92% of all payments are made through self-serve channels (IVR, web, mobile, AutoPay)—the most cost-efficient options that also drastically reduce staff time focused on processing repayments.
41% of Loan Payments borrowers pay using one-time guest pay while 36% pay using AutoPay. For financial institutions (FIs), this plurality demonstrates the need for maximum payments optionality. The mix of one-time payments and AutoPay means that borrowers can make quick and easy payments without having to register, while AutoPay delivers steady monthly on-time cash flow. Each borrower can choose what’s best for them.
Additionally, 55% of payments are made with ACH, while 42% are paid using debit cards. These payment options provide a unique opportunity for FIs to convert indirect borrowers into full-fledged consumers through the adoption of bank accounts and debit cards.
Digital wallets round out the payment offerings and continue to grow in adoption. 79% of Gen Z consumers are avid digital wallet users3. The ability to offer digital wallet payments is a strong differentiator for traditional banks and credit unions as they look to make inroads against nonbanks with this growing borrower base.
Payments made through self-serve channels
Payments made using one-time guest pay
Payments made using AutoPay
1 U.S. Bank Bill Pay: It’s Time for Resuscitation, Aite Novarica, November, 2021
2 Why Holistic Payment Experiences Will Win the Payment Platform War, May, 2023
3 PYMNTS Intelligence, Tracking the Digital Payments Takeover, February, 2024
