Top 5 Benefits of Online Bill Payments - Anytime Anywhere
Technology plays a vital role in the mass adoption of digital payments. Due to innovation in information and communication technology and in the digital landscape, we are witnessing a transformation from conventional to convenience in terms of transactions. According to the records on Statista, there are 4.66 billion internet users, half the global population, who have access to digital services, and this number will only rise over time.
Online bill payment is also much safer than the snail-mail method of sending checks in the mail, and is becoming increasingly popular. It has turned the imaginable dream into reality. Ranging from mortgages, tuition, utilities, loans, rent, credit cards, you name it, and it can be paid with a click from anywhere, anytime. But still, many people are hesitant to pay their bills online. They distrust the security of online transactions and believe online bill payment as a loss of control over their money.
Here we have put down the top 5 reasons why the world is switching to online bill payment:
1. Fast and Safe
When we think of bill payments online, many probably imagine setting up automated drafts from a bank account to pay the bills. Digital bill payment is faster and more convenient than the traditional method.
According to PWC, the number of mobile consumers has doubled from 2010 to 2017, rising from 7 percent to 17 percent. In 2020, as many as 45 percent of consumers used their smartphones for mobile shopping.
Once you go digital to pay a bill every month, you invariably find that it saves time and helps avoid frustration. Even if you wait till the last due day to pay online, you can save time and pay at your convenience since online transactions typically process much faster. Also, contrary to the once-popular belief, online bill payments are very safe. When you make online bill payments, you also have more recourse, if there's a dispute, you can simply look up records of payments made and sort out perceived grievances
2. Consolidate Card Payments
People are increasingly opting to pay bills online with their credit or debit cards. Since more and more merchants are accepting cards for online payment. Paying your bills online also grants an extra layer of security to the payment process rather than getting it done by someone else. And if you happen to be low on funds, you can use your credit card to pay the bills on time.
As per The Nilson Report, the general-purpose payment cards with global brands are projected to generate 853.90 billion purchase transactions in 2028. The increase of 131.50% versus 2018 amounts to a 13.2% compound annual growth rate.
3. Environment Friendly
Paper makes up 26% of total waste at landfills. And thankfully, these days, pretty much every bill can be mailed electronically. When you move your bill payment transactions online, you'll be doing your bit to preserve nature as you get rid of all the paper and parcels.
Fewer envelopes and less paper mean less hassle for you and less paper waste. And when there are fewer bills to be created, our carbon footprint will lessen. That means much less fuel, energy, and chemicals being expended on printing, packing, processing, mailing, and moving them. It's a harmless outcome that online bill payment is an all-around winner in terms of environmental benefits.
4. Easy Process
Online bill payment enables you to declutter your finances in one fell swoop. If you're not an exceptionally organized or technologically gifted person, paying bills online might sound a little daunting. But really, making bill payment online is much simpler than perceived. Sure, there's a little setup time, but once that's done, you'll never have to worry again about late payments. And then there's the money-saving part. Obviously, if you're not making money transfers, you're not paying any inter-country transactional fees and taxes.
5. Help You Manage Your Money
Being organized is a prime concern for customers when it comes to paying monthly bills. According to a Fiserv report, 35% of customers are worried about keeping track of due dates, and 29% are concerned about the probability of being late. When you pay bills the old-fashioned way, it can be natural to lose focus on your finances.
Once the bills are paid, they usually get shredded or lost in a heap of paper. When you pay online, you can view all your transactions and immediately identify if something is amiss. One can also spot billing errors more quickly by looking at their credit card statement every month.
The electronic payment system has grown increasingly and incredibly over the last decades due to the growing spread of internet-based banking and shopping. While online payments scare some people, it is actually faster, safer, and easier for the vast majority of people who embrace and use the service. As the world advances with more technology development coming with such regularity, we can see the rise of electronic payment systems and payment processing devices. As these increase, improve, and provide ever more secure online payment transactions, the percentage of check and cash transactions will decrease. Online bill payments are here to stay