3 Industries Where Customers Are Embracing Mobile Bill Pay
Mobile bill pay continues to grow at a fantastic rate. The number of mobile bill payment users throughout the country has doubled from 8 million in 2012 to 16 million in 2013.
And it’s not just smartphone users who are fueling this growth. Roughly 25 percent of tablet owners have used their devices to pay bills on the go. It's easy to understand mobile bill pay's growing popularity. In one recent survey:
- 70 percent of mobile bill pay users liked the added convenience
- 55 percent used mobile bill pay because it provided “anytime” access
- Roughly half of all respondents cited “time savings”
The benefits to merchants are clear, too. When customers can pay bills on mobile devices, business owners can benefit from fewer late payments, an enhanced customer experience, and decreased costs associated with getting paid.
Subscription-based services that rely on recurring credit card payments – utility companies, for example – are leading the mobile bill pay revolution. Below are some industries taking advantage of mobile bill payment:
1. Mobile Service Providers
It should come as no surprise that telecom companies were some of the earliest adopters of mobile bill pay. Their users already have devices. Allowing them to make payments through those devices is a no-brainer. In fact, 56 percent of mobile bill pay users handle their monthly telecom bills with their phones.
2. Cable and Satellite Providers
This one also makes perfect sense. The cable bill is regular enough that recurring billing should be a popular option. But with add-ons and rentals, the exact amount of the cable bill changes every month. Mobile bill pay allows users to verify invoices before sending automatic payments with the click (or "tap”) of a button. Roughly 40 percent of mobile bill pay users take care of the monthly cable bill with their devices.
3. Electricity Providers
The same logic applies here. Because each electricity bill is slightly different due to varying usage and rates, mobile bill pay is a natural fit for utility companies. In fact, the industry has experienced some of the fastest growth within the mobile bill pay market. In 2012, approximately 20 percent of mobile bill pay users kept the lights on with their phones and tablets. In 2013, it soared to 30 percent.
Is Your Industry Poised to Take Customer Bill Pay Mobile?
Insurance carriers, credit card companies, and broadband providers are also quickly among the leaders. Retail is seventh on the list – specifically, department stores.