For example, the telecommunications industry is much further ahead than utilities, which are ahead of lenders. The ability to be with consumers wherever and whenever opens the door to create a digital relationship that goes beyond receiving and paying bills. It's an opportunity to reach a broader segment of customers and expand an organization's messaging, whether that focuses on other products and services or providing tools to help people better manage their money.
The number of options for how people can make payments is expanding as innovation and consumer adoption accelerate in digital, mobile and social channels. From the major ecosystem "Pays," such as Apple and Android, to merchant-branded retail payments apps and even Venmo and Facebook, payments are becoming integral to the services people use every day. That has profound implications for billers. Once people get comfortable with a payment method, they expect to be able to transact that way in every other aspect of their lives.
For example, people are starting to like using their fingerprints to make purchases, and they may expect that capability in other payment circumstances. Those experiences will affect what people expect from their billers. Creating those connected payments experiences across channels requires a flexible technology infrastructure, network scale and strong partnerships.
Enhancing the billing and payment experience for consumers is far more than a single trend for the coming year. It will come in various shapes and sizes, both behind the scenes and in highly visible ways. But there's a common theme tying it all together: meeting people wherever, whenever and however they want. Households' methods of coping with these difficulties vary across the income spectrum.
A widely cited survey question from the Federal Reserve asks how respondents would pay an emergency expense. Among households that are struggling to make ends meet, we found that approaches vary significantly across the income spectrum Table 1.
Unsurprisingly, low-income households have few options. They report borrowing from friends and family, selling possessions, and simply being unable to meet expenses. Consistent with these findings, evidence from other surveys reveals rising food insecurity among low-income households.
Middle-income households report using formal credit: putting expenses on credit cards with the hopes of paying the debt off over time, using bank loans and lines of credit, and, in some cases, taking on payday loans. We found fewer reports of payday loans among the low-income group than among the middle-income group. Although this difference was not statistically significant, it might reflect the higher rates of job loss among low-income workers, as documented in other surveys; [7] without a job, a payday loan is not an option.
Among the high-income group, households are likely to report turning to existing assets such as balances in checking or savings accounts , and they report planning to pay off those expenses they do put on credit cards at the end of the month.
NOTE: The exact wording of the question was "What methods are you using or do you plan to use to cover your expenses? Only respondents who indicated that they found it "very difficult" or "somewhat difficult" to pay their bills were asked this question.
Sample size ranges from to because of some nonresponse for individual methods. Otherwise, you risk convincing the creditor that things are so bad they should immediately cut off future credit.
For information on which bills you should pay first to reduce your liability , see Nolo's article on Prioritizing Which Business Debts to Pay.
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Why Paying on Time Makes Sense What about the argument some small business commentators make that by keeping accounts current you are paying out money before you absolutely have to—something you can't afford to do in tough times? Saving Your Good Name The cost of paying on time is low as compared to almost anything else you can do to maintain a good reputation in your business community.
Saving Money Paying early can get you discounts that net you more cash then you could earn in interest by holding onto the money longer.
Ensuring Excellent Future Service Every working day, you and every other small entrepreneur on Earth form judgments about the businesses you come into contact with, judgments that are particularly crucial at a time when many businesses are in financial trouble. For example, you likely have thoughts like these on a regular basis: Business A produces a reliable product.
Business B's employees can be relied on to show up when they say they will and work overtime if that's what it takes to finish a job. Business C constantly comes up with new and innovative services that frequently anticipate our needs. Business D always seems to be understaffed by surly employees who never return phone calls. The owner of Business E is great, but some of his younger employees are not properly trained. Damn Business F. Another day is here, and its check isn't.
Encouraging People in Your Network to Recommend Your Business Keep in mind that it's not just your satisfied customers people who pay you money who tell others about your business. Building and Keeping a Positive Credit Profile If your business is new and tiny, you might assume the rest of the commercial world doesn't even know you exist.
Getting a Payment Cushion Paying on time acts as an effective rainy day fund if and when you face a serious reverse like losing a major client, having a horrible sales month, or dealing with the bankruptcy of someone who owes you a lot of money.
Business Formation. Choosing a Business Structure. Sole Proprietorships. Forming a Corporation. See All Business Formation Articles. Talk to a Lawyer Need help? Start here. Practice Area Please select Zip Code.
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