In an era driven by technology and digital advances, it’s easy to read the term “next-generation billing and payments” and wonder why Paymentus places such a focus on cash bill pay. After all, we’ve written articles about inclusion, cash bill pay as a differentiator, leaving no customer behind, and conducted interviews about including cash within the digital shift.
We have case studies showcasing the importance of cash bill pay and its ability to serve every customer.
We even offer five different ways to serve cash-reliant customers, including in-store bill pay at more than 40,000 convenient locations.
So, why this focus? Because your cash-reliant customers deserve it.
Research Shows That Cash Can Be Costly
For the millions of unbanked and underbanked Americans who rely solely on cash for their monetary needs, added expenses are a fact of life. In a recent article, Nerdwallet, with data from FDIC (Federal Deposit Insurance Corp.), offered a comprehensive look at the fees endured by this demographic. Notably, just the act of converting a paycheck into cash using a check-cashing service can cost up to $10.
Certainly check cashing sits outside the purview of billers, but it’s the cascade effect from this point that separates organizations looking to collect a bill from those looking to build long-lasting, successful customer relationships.
The Current Cost of Cash Bill Pay
More than any other type of consumer, cash bill payers are completely at the mercy of their service providers’ payment offerings. Organizations that offer limited—or even no—access to cash bill pay capabilities leave consumers reliant on costly alternatives.
For instance, 32% of unbanked households use nonbank money orders. 92% of these households use money orders to pay their bills. Astonishingly, if this group uses just two nonbank money orders each month to pay bills, it would add up to more than $46 million per year in fees.
Unbanked households using money orders to pay their bills
Cumulative cost of unbanked households using two nonbank money orders each month
Prepaid cards are another payment method that drains the pockets of your cash-reliant customers. One-third of unbanked households use prepaid cards, with bill paying serving as the most common usage (78%). What’s the cost? Estimates range from $59 million each year to $176 million (if cards incur a monthly account fee).
Cost Conscious Cash Bill Pay: The Ultimate YouX
As a company dedicated to YouX, it is our mission to help our clients best serve their entire customer base. That begins with understanding the needs of all who pay bills and putting forward modern, convenient solutions to address these needs.
It’s critical that all organizations grasp the opportunity at hand. By offering in-store retail cash payments, self-serve kiosks, PayPal digitized cash and more, you can help offset the costs of using cash traditionally and provide simpler ways for customers to pay their bills.
An added benefit is that of digital adoption. It may seem counterintuitive to think of cash as a digital adoption driver, but it absolutely is. In particular, Scan-to-Pay links your online customer portal with a cash bill pay option. Customers opting to use Scan-to-Pay are sent a barcode via text or email, creating a full digital experience. From here, it’s an easy play to drive eBill adoption, which can potentially save billers thousands over the course of a relationship.
There’s no better way to show that you are on a customer’s side more than saving them money. Whether this is through usage tips, promotions or budget-friendly payment options, a penny saved is goodwill earned. And you can’t put a price tag on that.
Want more ways you can make customers happy? Enter the era of YouX to learn the secrets to world-class customer service from an award-winning chef and restaurateur. You can also request a 15-minute demo to see how the Paymentus billing and payment solution can transform your ability to serve all customers.
