As we embrace the dawn of a new year, it’s the perfect time for billing organizations to reflect on the past and plan for the future — and what better touchpoint to reevaluate and optimize than the one that shifts the fastest: the bill payment experience. To provide valuable insights into the evolving landscape of payment preferences and trends, InvoiceCloud partnered with Regina Corso Consulting to conduct a comprehensive survey. The survey, executed online in October 2023, gathered responses from 2,001 US adults, offering a representative snapshot of the nation’s payment behaviors.

Let’s delve into the key findings from the State of Online Payments survey report with a practical checklist that organizations can use to stay ahead of today’s customer expectations for payment experiences.

1. Offer an Optimized Guest Checkout Route for Seamless Payments

The report highlighted common challenges faced by online payers, including the top challenge: 23% of respondents struggled to remember their usernames and/or passwords. When payers hit this friction in the process, they’re more likely to abandon the payment altogether, increasing the likelihood of late or delinquent payments.

To address this issue, billing organizations should prioritize offering an optimized guest checkout route. Not only does this resolve the issue of forgotten credentials, but it also enhances the overall customer experience. Convenience is paramount in online payments, with 38% of respondents in another recent InvoiceCloud survey citing it as their primary reason for choosing digital payment methods. Forcing customers to register for an account can be a deterrent, making guest checkout options crucial for retaining and attracting customers. 

2. Prioritize the Ease of the Mobile Payment Experience

Mobile devices continue to be the most preferred and most used choice for bill payments, with 65% of Americans having used them to make a payment in the past 12 months. As such, billing organizations must ensure the mobile payment experience is seamless and user-friendly. InvoiceCloud, for instance, adapts its payment platform to mobile screens, removes login screens, and offers frictionless options such as one-click payments or reminders via text, email, or voicemail. These efficiency-boosting features not only enhance the mobile payment experience but also encourage adoption and satisfaction among customers who prefer mobile channels. 

3. Embrace Gen Z’s Preferred Channels: Digital Wallets and ACH Payments

As Gen Z becomes a significant demographic in bill payments, aging into payments like auto insurance or utilities, organizations must cater to their unique preferences. The data shows this generation leans towards digital wallets and ACH payments as their preferred methods for paying bills.

Digital wallets, which allows consumers to store payment information on their mobile devices, offer a seamless omni-channel experience and streamlines the payment process.

ACH payments, known for their convenience and real-time reconciliation, resonate well with customers looking to simplify monthly payments. To stay ahead, billing organizations should offer these payment options and feature them prominently wherever possible.