With the right payment 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 Code: These scannable links can be used on paper statements to drive adoption of online self-service. QR codes allow borrowers to pay their auto loan bill without needing to navigate to a website or remember passwords and account numbers.
2. Digital wallets: of all consumers (35%) and just under half (43%) of those 44 and under say the ability to store their bills in their Apple or Google Wallet and pay with 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 few years.
In an investigation85% of respondents have used PayPal in the past year and 32% have used Venmo.
Auto lenders can now enable PayPal and Venmo for auto loans. According studying the payment of bills30% of consumers overall and 38% of those 44 and under said being able to pay with Venmo or PayPal would make it easier to pay bills on time.
4. Pay by SMS: According to Pew Research Center, text messages are the main means of communication for people aged 50 and under. In fact, 97% of smartphone users use their texting app every day.
For this reason, offering bill payment via SMS is a no-brainer. Through texting, lenders can take borrowers directly to their verified payment stream with two easy clicks.
Today’s car shoppers are self-service shopping savvy and want that same independent digital experience to trickle down to their auto loan payments. Now is the time to give them an easier and more convenient way to repay their loans.