Pay Bills

Bill Paying Survey Finds U.S. Consumers Struggle to Pay Their Bills on Time

To increase on-time bill payments, billers need to create a frictionless payment experience, and for many consumers, that means having the ability to pay their bills via mobile device. – Anne Hay, Head of PayNearMe’s Consumer Research Initiative.

PayNearMe, the modern and reliable payments platform known for making payments easier for businesses and customers, today released the results of a bill paying survey that reveals why some American adults struggle to pay on time personal loans, car loans, mortgages and utilities. The online survey of 2,676 US consumers, ages 18 and older, also highlights that US adults of all ages want to use mobile payments to pay their bills, and that the ability to store bills in an Apple or Google Wallet and paying via smartphone makes it easier for them to make payments on time.

“Almost one in five adults surveyed (19%) say they paid a bill late because the online payment process was so complicated that they became frustrated and did not make the payment,” said Anne. Hay, head of PayNearMe’s consumer research initiative. “To increase on-time bill payments, billers need to create a frictionless payment experience, and for many consumers, that means having the ability to pay their bills through a mobile device.”

Additionally, consumers can better manage their finances when they can view and store their bills in a digital wallet. For example, when consumers store bills in a digital wallet, they can enable push notifications to allow engagement communications from the biller, such as electronic bill payment reminders. Nearly half of American adults surveyed (45%) say receiving a text or email reminding them when a bill is due would make it easier to pay bills on time; 38% think a reminder including a clickable payment link would be even more convenient, according to the results.

Bill Payment Survey: Key Findings

● Half of US adults (51%) have paid at least one late bill in the past 12 months.

● Nearly 1 in 3 American adults (30%) with a personal loan admit to having made late payments on their personal loan. Nearly 1 in 8 (12%) frequently or always make late payments on personal loans; 12% are likely or very likely to delay repayment of their personal loan.

● 28% of US adults with a car payment admit to having made late car payments. Nearly 1 in 6 (15%) say they frequently or always pay this bill late; 11% are likely or very likely to delay paying for their car.

● More than 1 in 4 American adults (27%) with a mortgage admit to having paid this bill late. Nearly 1 in 6 (15%) say they frequently or always pay this bill late; 11% are likely or very likely to delay their mortgage payments.

● Nearly 3 in 10 (29%) adults with a utility bill admit to paying late; 13% frequently or always make late payments for utilities; 15% are likely or very likely to delay paying their utility bill.

“When tens of millions of people pay their bills late, billers need to adapt the bill payment process to meet customers where they are; and they’re on their cell phones,” Hay said.

Across generations, consumers miss payments. Young adults aged 18-29 are the most likely to miss payments, in part because they have difficulty keeping track of due dates (53%) and remembering passwords when they attempt to log in to pay a bill (51%). Adults aged 30-44, who came of age with connected mobile devices, are the most likely to ignore paper bills (34%) and be frustrated with a cumbersome online bill payment process (26 %). Consumers between the ages of 45 and 60 are the most likely to procrastinate or forget to pay a bill (40%). Boomers, the majority of whom own a smartphoneare well on their way to adopting mobile bill payment.

Consumers of all ages agree that having more mobile payment options would make it easier to pay bills on time. Nearly a third (29%) say the ability to use different payment types each billing cycle would make it easier to pay bills on time. Three in 10 (30%) consumers surveyed say being able to pay their bills using Venmo or PayPal would help them make more payments on time, and a quarter of US adults (25%) have used — or plan to use — Apple Pay or Google Pay to make bill payments through a mobile device.

Bill payment trends by age group

● Young adults are most likely to miss payments: Nearly 30% of consumers aged 18-29 have missed more than four bill payments in the last twelve months. In comparison, only 19% of adults aged 45 to 60 have missed more than four payments during the same period and only 8% of baby boomers over 60 have done the same.

● Adults aged 30-44 are the most likely of all age groups to lose or forget their physical bill in a pile of mail (28%) or email (33%). They are also more likely (38%) to be frustrated with the process of paying bills online and not making their payments.

● Adults aged 45-60 are the most likely (33%) of all age groups to procrastinate or forget to pay a bill. They are also the most likely of all age groups (36%) to not have enough money in their bank account to make a payment, and the most likely to have paid late because they lost their jobs due to COVID-19 (32%).

● Baby boomers aged 60+ are ready to embrace mobile bill payment. Nearly a third (30%) find the ability to scan a QR code on a paper bill statement and pay a bill with a few mobile clicks appealing or very appealing. Nearly one in five (17%) baby boomers say they are likely or very likely to use Apple Pay or Google Pay to pay their bills, if given the option; 16% say the ability to store their bills in an Apple or Google Wallet and pay via their smartphone would make it easier for them to pay their bills on time.

“Having a mobile bill payment strategy can increase on-time bill payments across all age groups,” Hay said. “PayNearMe works with billers to make it easy for their customers to pay their bills directly from their mobile wallets so they can get the information they need – amount due, payment term and remaining balance. – directly on their smartphone.”

Millions of consumers use smartphones to purchase goods and services, and survey results suggest they also want to use them to pay their bills.

● Given the choice, nearly 2 in 5 US adults (38%) would be likely or very likely to pay their bills with Apple Pay or Google Pay.

● More than a third of US adults (35%) say the ability to store bills in their Apple or Google Wallet and pay via smartphone would make it easier to pay bills on time.

● 42% of US adults say they would be likely or very likely to use their digital wallet to store, view and pay recurring bills if their billers made this option available.

“The majority of American consumers (85%) own a smartphone, and we estimate that there are billions of bill payment transactions every year,” Hay said. “It’s clear that late payments don’t have a single cause, and billers need to adapt to meet the preferences of all consumers to make the process easier – and that includes offering a seamless mobile payment experience. friction.”

To download, “Why consumers pay late (and how to encourage more on-time payments)“, an original research paper from PayNearMe that uncovers new and surprising insights into the mind of the modern bill payer. The paper highlights trends and attitudes regarding late bill payments, and provides suggestions on how to way to generate more on-time payments and increase customer satisfaction in the process.

Survey methodology

PayNearMe surveyed 2,676 nationally representative US adults ages 18 and older. The survey was conducted using an online survey format. Quotas have been established to ensure a reliable and accurate representation of the total US population ages 18 and older. The results of any sample are subject to sampling variations. The magnitude of the variation is measurable and depends on the number of survey respondents and the level of the percentages expressing the results. In this particular study, there is a 95 out of 100 chance that a survey result will not deviate, more or less, by more than 2.0 percentage points from the result that would have been obtained if interviews had been conducted. with all the people in the universe represented by the snack.

About PayNearMe

PayNearMe develops technology that improves payment experiences for businesses and their customers. Our modern, flexible, and reliable platform helps businesses increase customer engagement, improve operational efficiency, and reduce the total cost of accepting and managing payments. PayNearMe offers more ways to pay by offering all major payment types and channels in one platform.

PayNearMe today processes a variety of payment types, including Card, ACH, Apple Pay, Google Pay, PayPal, and Venmo, and has enabled cash payments through our proprietary cash network since 2009. PayNearMe cash payments are accepted at over 31,000 retail outlets in the United States. including participating 7-Eleven®, Walmart®, Family Dollar®, Casey’s General Stores® and ACE Cash Express®, among others.

Thousands of businesses partner with PayNearMe to manage the end-to-end customer payment experience in industries such as consumer finance, property management, insurance, utilities and municipal, and l ‘iGaming and sports betting.

To learn more about PayNearMe, please visit http://www.paynearme.com. Follow PayNearMe on Twitter, LinkedIn and Facebook. The PayNearMe service is operated by PayNearMe MT, Inc., a licensed money issuer.