With the right payments platform, auto lenders can create a seamless self-service payment experience. Here are four must-haves to look for when selecting a platform.
1. QR codes: These scannable links can be used on paper statements to drive adoption of online self-service. QR codes enable borrowers to pay their auto loan bill without needing to navigate a website or remember passwords and account numbers.
2. Digital wallets: of all consumers (35 percent) and just shy of half (43 percent) of those 44 and younger say being able to store their bills in their Apple or Google wallet and pay using their smartphone would make the process easier.
3. Peer-to-peer payment channels: Peer-to-peer payment channels such as Venmo and PayPal have grown exponentially over the past several years.
In one survey, 85 percent of respondents used PayPal in the past year, and 32 percent used Venmo.
Auto lenders can now enable PayPal and Venmo for auto loans. According to the bill pay study, 30 percent of consumers overall and 38 percent of those 44 and younger said being able to pay using Venmo or PayPal would make it easier to pay bills on time.
4. Pay by text: According to the Pew Research Center, texting is the primary way those age 50 and under communicate. In fact, 97 percent of smartphone users use their texting app every day.
For this reason, offering bill payment by text is a no-brainer. Through texting, lenders can get borrowers directly to their verified payment flow with two easy clicks.
Today’s car buyers are savvy in self-service shopping and want that same independent, digital experience to carry over to their auto loan payments. Now is the time to give them an easier, more convenient way to pay back their loans.