Paymentus Marks 20 Years of Bill Pay Innovation With New Insights Into Bill Pay Behavior
February 09 2024 - 8:40AM
Business Wire
Consumers Seek Control, Expanded Payment
Options and Convenience to Pay 16.8 Billion Bills Annually
Paymentus Holdings Inc., (NYSE: PAY), a leading electronic
billing and payments platform provider, today marks 20 years of
innovation and leadership in the billing, payment, and money
movement space. Now serving more than 1,900 clients, Paymentus
continues expand its portfolio of industry-leading products and
solutions designed to simplify the bill-pay process and to
encompass the entire bill pay continuum from consumers to billers,
and financial institutions.
Since its founding in 2004, Paymentus has monitored the bill pay
behaviors and preferences of millions of consumers across billions
of transactions. This analysis reveals that today’s consumers are
largely living in a state of perpetual bill-pay overwhelm. They are
eager for solutions that provide control over their money movement
and the flexibility to use a growing variety of readily available
payment options for their monthly bills.
As National Pay Your Bills Week comes to a close, Paymentus
notes the size of the challenge individuals and families face when
trying to manage a monthly budget - underscored by the sheer volume
of bills they receive. According to the recent Paymentus-supported
study on How American’s Pay Their Bills from leading analysts firm,
Datos Insights:
- In 2023, Americans received and paid more than 16.8 monthly
bills – that’s more than 50 bills for each person, regardless of
age.
- In 2023 alone, consumers spent $5.6 trillion on monthly bills –
more than 20% of the total U.S. GDP.
- While the vast majority of bills are now paid electronically –
only 4 in 10 are set up for auto-pay, leaving 10 billion to be paid
individually, month-to-month.
“Paying bills is a ubiquitous experience that offers little
enjoyment, which is why it’s often called a chore,” said Dushyant
Sharma, Founder and CEO of Paymentus. “For 20 years, we have
focused on simplifying bill pay to make it less of a chore. But
simplicity is only part of the solution. Consumers really want more
control over cash flow and household spending.”
The volume of bill payments made by credit or debit card has
increased by 120% since 2010, according to recent data, and
payments using digital wallets and other alternative payment
methods are growing in popularity, especially among younger
consumers. Today’s average bill payer relies on at least four
different payment methods to manage their monthly bills.
“The data suggests that control over cash flow is the primary
driver of bill pay behaviors,” explains Sharma. “While it is
certainly more convenient to use auto-pay for bill payments, the
fact is that consumers will trade convenience for the ability to
change their payment method or shift their payment date from
month-to-month. They are dynamically managing money across numerous
platforms – not just a checking account – and work hard to time
payments and avoid late fees and service interruptions. This is why
10 billion bills were paid as one-time-payments in 2023.”
To help consumers manage 10 billion individual transactions
every year, billers and service providers need to give customers
convenient and feature rich billing experiences, or risk losing
business according to Sharma. A 2023 Paymentus-supported study
conducted by PYMNTS.com, revealed that consumer interest in
changing a service provider increased in proportion to the
frustration they encountered in paying their bills. While the high
cost of bills was cited as the most common bill-pay frustration
(27%), inconvenience (22%), lack of features (22%) and lack of
payment options (15%) were close behind.
“To look back over two decades of digitization and innovation,
it is amazing how much we have accomplished,” said Sharma. “Banks
and billers now have the tools to help consumers manage and pay
their monthly bills faster, with more security, more payment
options, and through more channels than ever before. Still, the
status-quo has a short shelf life. Consumer expectations have never
been higher or grown faster. It is up to us to understand them and
outpace them.”
About Paymentus
Paymentus is a leading provider of cloud-based bill payment
technology and solutions for more than 1,900 billers and financial
institutions across North America. The company was named the
industry’s best-in-class provider of EBPP solutions by
Aite-Novarica in February 2022. The Paymentus omni-channel platform
provides consumers with easy-to-use, flexible, and secure
electronic bill payment experiences through their preferred payment
channel and type. Paymentus’ proprietary Instant Payment Network®,
or IPN, connects IPN partners’ platforms and tens of thousands of
billers to Paymentus’ integrated billing, payment, and
reconciliation capabilities. For more information, please visit
www.paymentus.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240209145957/en/
Media Contact: Tony Labriola media-relations@paymentus.com
Investor Contact: David Hanover, Senior Vice President KCSA
Strategic Communications paymentus@kcsa.com
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