| Utility customers appreciate convenience of having multiple bill payment options |
Utility companies and other businesses with consumer customers often find that offering multiple payment channels can streamline payment acceptance and provide added convenience for consumers.
A relatively large number of U.S. households seek alternative ways to pay utility and other bills. A 2013 Federal Deposit Insurance Corporation survey found that nearly 8 percent or almost 10 million of U.S. households were unbanked (having no account at an insured banking institution) and 20 percent or almost 25 million were underbanked (having one bank account, but also using alternative financial services outside the banking system). Most underbanked households reported having an account only to receive direct deposit payments from employers.*
U.S. Bank E-Payment Service provides utilities and other businesses new ways for their customers to make payments using cash, checks and cards, either on-site at customer payment centers or at other locations.
“Since introducing our E-Payment Service 12 years ago, more than 100 utilities (private and government) and more than 300 other customers have used it to collect payments from their customers,” says Stephen Stradal, vice president and commercial product manager within U.S. Bank’s Global Treasury Management Group. More than 150 million individual customers have initiated payments in the E-Payment Service during that time.
E-Payment Service includes Internet, touch-tone telephone (IVR), staffed service center and internet payment channels. Two newer E-Payment Service solutions, the Kiosk Channel and Walk-In Cash Payment Channel, add to those options.
E-Payment Service Kiosk
Many utility companies report challenges in collecting walk-in payments from customers. Walk-in customers may be unbanked or underbanked and want to make payments in cash on or near their billing date, thereby placing increased demand on staff and increasing wait times for other consumers. Conventional walk-in payments require staff time and are likely to involve handling large amounts of cash or checks that are at risk for error or theft. Often, customers making payments must wait in line for service, which is inconvenient and delays service to other customers.
The E-Payment Service Kiosk Channel reduces wait time and improves service by freeing up staff from accepting payments. Cash, check, debit and credit card payments can be accepted at the kiosk. Our research indicates that consumers prefer the convenience and speed of the kiosk with its easy-to-use interface and receipt generation capability. Companies may also choose to accept real-time payment confirmation messages for payments initiated at the kiosk, giving them just-in-time data to make informed customer servicing decisions. Kiosks can offer multilingual capabilities and be placed in locations that allow for 24-hour access.
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From a biller’s point of view, the E-Payment Service Kiosk reduces processing costs and delays, minimizes the risk of human error, and decreases shortages associated with cash handling. Billers can access insightful reports, track payments in real time and improve their cash flow. U.S. Bank offers on- site and remote maintenance of the kiosks, and also offers optional armored courier service. Billers simply need to replace printer paper and handle paper jams, should they arise.
The E-Payment Service Kiosk can be customized to reflect a biller’s logo and brand, and is available in both indoor and outdoor models. “We now offer a smaller indoor tabletop model which is about half the size of the indoor kiosk, making it ideal for locations with limited physical space,” Stradal notes.
E-Payment Service Walk-In Cash Payment
U.S. Bank is now piloting the E-Payment Service Walk-In Cash Payment Channel, which allows bill payment with cash at select convenience stores, drug stores, gas stations and other participating retail locations. This channel can complement a biller’s kiosk payment acceptance capability beyond its own office locations by extending “payer present” capabilities and providing added convenience for payers.
By choosing E-Payment Service Walk-In Cash Payments, utilities and other companies can have the convenience of consolidating these payments, settlements and remittances with those initiated using other payment channels in the E-Payment Service suite. This can reduce the number of payment collection vendors needed, decrease the processing costs, and increase efficiency.
The E-Payment Service Walk-In Cash Payment channel is scheduled to be made available to clients in early 2016.
To learn more about U.S. Bank E-Payment Service collection alternatives, contact your Treasury Management Sales Consultant.
* 2013 FDIC National Survey of Unbanked and Underbanked Households, Federal Deposit Insurance Corporation, October 2014. https://www.fdic.gov/householdsurvey/
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