How People Pay with Their Phones

To be a successful fisherman, you must fish where the fish are. Like fishing, marketing for your business really boils down to finding your fish and telling them about what you offer.

In many fields, especially in the B2C world, meeting your customers where they are is the most effective way to engage and communicate with them. And if you haven’t figured it out yet, your customers are on their phones. They use them multiple times throughout the day and already pay for things with peer to peer payment apps, company-issued payment apps, mobile banking apps, and digital wallets.

Are you accepting mobile payments? Here are some reasons why you should.

The Mobile Payment Market

This Statista chart shows the approximate value of all mobile payment transactions in the U.S. In 2018, mobile transactions were valued at $78 billion (up 59% from 2017) and are projected to reach $113 billion in 2019.

The mobile payment market is huge and growing very quickly. Do you have a mobile presence? Are you making it easy for your customers to find you and pay you?

Peer to Peer Payment Apps

Zelle, a peer to peer (p2p) payment service owned by seven banks, has 27 million users. Zelle is a digital wallet and payments platform where you use your bank account to complete peer to peer payment transactions. Venmo, owned by Paypal, also works as a digital wallet for initiating and receiving peer to peer payments. Square Cash, the 3rd largest mobile p2p payments platform, has 9.5 million users, according to eMarketer.

These top three platforms had 60 million users in 2018. Even if one-third of these users use more than one of the three platforms (and it’s probably much less than one-third), there is still a market of 40 million users (or 1 in 8 Americans).

With a projected 44% growth rate to $113 billion in transactions and at least 40 million users, the mobile payments market is just too big to ignore.

Company-Issued Payment Apps

Thanks in large part to company-issued payment apps, consumers are now expecting a mobile presence from all the brands with which they interact. We’ve said before that the most popular payment app is the Starbucks app. There are many reasons why, including:

  • the thousands of locations worldwide
  • the app’s user-friendly experience, and
  • the unique benefits offered, like special features or in-app discounts

The chart below shows that digital wallets Apple Pay, Google Pay and Samsung Pay, are all popular with a combined total of 40 million users. Yet individually, they each have fewer users than the Starbucks app.

Mobile Banking Apps

Mobile banking apps are much more popular than many people realize. Finextra reports that in a 2018 study, nearly half of the respondents had increased their mobile banking app usage and 31% said they use their mobile banking apps the most. A mobile banking app is the 3rd most popular app on a smartphone, right after social media and weather apps.

Bankrate reports that 63% of all smartphone users have downloaded a financial app. The U.S. has approximately 250 million smartphones, which means 157.5 million people have financial mobile apps on their phones.

Paypal

Paypal is so big and so old in fintech, it predates the term of ‘digital wallet’ or ‘e-wallet’ and gets its own category. As of Q4 2018, Paypal had 254 million active accounts and 17 million merchants worldwide. It processed 7.6 billion transactions in 2017. Paypal is so popular and trusted throughout the world, that the average account does 35 transactions through Paypal each year. In fact, if Paypal were a bank, it would be the 21st largest bank in the U.S.

Paypal is still growing at an excellent rate. Payments processed grew 25% from 2016 to 2017. If there is room for Paypal to continue to grow, then there is room for you in mobile payments.

Conclusion

When you offer a mobile payment option, you are where your customers are. By making it easier for customers to pay, you will receive more payments earlier and on time. People are already paying bills, splitting their bar tabs, and managing their bank accounts through their phones. Any little piece of the mobile payment market you can claim is added growth for you and convenience for your customers.

If you want to learn more about how to add a mobile payment option for your business, contact REPAY today. One of our mobile payment experts will show you exactly how it works and what it can do for your business.

REPAY Expands into Canada

ATLANTA, April 25, 2019 — Repay Holdings, LLC, a leading provider of vertically-integrated payment solutions, together with its parent, Hawk Parent Holdings LLC (together, “REPAY”), announced today expansion of its integrated payment processing services into Canada. REPAY will now offer its suite of payment processing solutions to the Canadian personal loans and automotive loans markets. REPAY’s expansion into Canada allows Canadian lenders and finance companies to access REPAY’s integrated payment technology platform, which reduces the complexity of electronic payments for merchants while enhancing their customers’ overall experience. 

With REPAY’s payment products, merchants can accept payments anytime, anywhere via consumer-facing online payment portals, SMS/text pay, IVR/phone pay, and white-labeled mobile apps. The proprietary payment platform easily integrates with our clients’ enterprise management systems and enables merchants to simplify and automate their payment and reconciliation processes. Merchants who use REPAY’s payment services will have access to dedicated implementation teams,  24/7/365 customer service, and professional risk management resources.

REPAY brings deep industry expertise and an innovative suite of payment solutions to Canada. “We combine reliable and secure payment processing with an integrated technology platform to bring speed and convenience to the debt repayment process,” said John Morris, CEO of REPAY. “We believe we have an attractive opportunity to deliver new and exciting payment technology that brings innovation to the consumer and auto finance markets in Canada.”

The expansion into Canada is a strategic next step for REPAY. “We have several existing clients with a presence in the U.S. and Canada,” said Shaler Alias, President of REPAY. “We are thrilled to expand our footprint and extend our payment technology services to their Canadian operations. Our customers are excited about the capabilities the REPAY platform will bring to their operations and to the entire Canadian market.”

REPAY previously announced that it had entered into a merger agreement with Thunder Bridge Acquisition, Ltd. (NASDAQ: TBRG) (“Thunder Bridge”) for a proposed business combination. Completion of the transactions is subject to approval by the stockholders of Thunder Bridge and certain other conditions. The transactions are expected to close in the second quarter of 2019.

About REPAY
REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers.

About Thunder Bridge Acquisition Ltd.

Thunder Bridge Acquisition, Ltd. (“Thunder Bridge”) is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. In June 2018, Thunder Bridge consummated a $258 million initial public offering of 25.8 million units, each unit consisting of one of Thunder Bridge’s Class A ordinary shares and one warrant, each warrant enabling the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share. Thunder Bridge’s securities are quoted on the NASDAQ stock exchange under the ticker symbols TBRGU, TBRG, and TBRGW.

Important Information About the Transaction and Where to Find It

This communication is being made in respect of the proposed business combination between Thunder Bridge and REPAY. In connection with the proposed business combination, Thunder Bridge has filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4, which includes a preliminary proxy statement/prospectus of Thunder Bridge, and will file other documents regarding the proposed transaction with the SEC. After the registration statement is declared effective, Thunder Bridge will mail the definitive proxy statement/prospectus to its shareholders. Before making any voting or investment decision, investors and shareholders of Thunder Bridge are urged to carefully read the preliminary proxy statement/prospectus, and when they become available, the definitive proxy statement/prospectus and any other relevant documents filed with the SEC, as well as any amendments or supplements to these documents, because they will contain important information about Thunder Bridge, REPAY and the proposed business combination. The documents filed by Thunder Bridge with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov, or by directing a request to Thunder Bridge Acquisition, Ltd., 9912 Georgetown Pike, Suite D203, Great Falls, Virginia 22066, Attention: Secretary, (202) 431-0507.

Participants in the Solicitation

Thunder Bridge and REPAY and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Thunder Bridge in favor of the approval of the business combination. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Thunder Bridge in connection with the proposed business combination is set forth in the preliminary proxy statement/prospectus. Free copies of these documents may be obtained as described in the preceding paragraph.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding REPAY’s industry and market sizes, future opportunities for Thunder Bridge, REPAY and the combined company, Thunder Bridge’s and REPAY’s estimated future results and the proposed business combination between Thunder Bridge and REPAY, including the implied enterprise value, the expected transaction and ownership structure and the likelihood and ability of the parties to successfully consummate the proposed transaction. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed in Thunder Bridge’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inability to meet the closing conditions to the business combination, including the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement; the inability to complete the transactions contemplated by the definitive agreement due to the failure to obtain approval of Thunder Bridge’s shareholders, the inability to consummate the contemplated debt financing, the failure to achieve the minimum amount of cash available following any redemptions by Thunder Bridge shareholders or the failure to meet The Nasdaq Stock Market’s listing standards in connection with the consummation of the contemplated transactions; costs related to the transactions contemplated by the definitive agreement; a delay or failure to realize the expected benefits from the proposed transaction; risks related to disruption of management time from ongoing business operations due to the proposed transaction; changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets; risks relating to REPAY’s relationships within the payment ecosystem; risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY; and the risk that REPAY may not be able to develop and maintain effective internal controls.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about Thunder Bridge and REPAY or the date of such information in the case of information from persons other than Thunder Bridge or REPAY, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources we believe to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

No Offer or Solicitation

This communication shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the transaction. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

Investor Relations Contact:
repayIR@icrinc.com

Media Relations Contact:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

To view the press release, please click here.

Auto Lenders Can Decrease Delinquencies by Offering Multiple Ways to Pay

Auto lenders are facing a big problem: credit quality is deteriorating. Private lenders and buy here pay here lenders are getting hit the hardest. If you haven’t suffered yet, higher than average delinquencies are probably coming your way.

Auto loan originations have hit an all-time high of $584 billion. At the same time, the Motley Fool reports that 7 million Americans are more than 90 days late on their auto loans, which accounts for almost 6.5% of all auto loans across all credit grades. Bloomberg describes the problem as the highest auto delinquency levels since 2012. More people are now behind on their auto loan payments than during the Great Recession.

The bottom line: bringing the deals in is no problem, but making sure your portfolio stays current might be.

If you are an independent auto lender, you need to proactively manage your portfolio, or it could get away from you. REPAY has the tools to help you – you don’t have to go at it alone.

Not All Credits Are Impacted

The Motley Fool article states that only 1% of credit union held auto loans are delinquent. On the other hand, 6.5% of those held by all private auto finance companies are delinquent. How can this be? Credit unions usually have older and more credit savvy borrowers with higher credit scores. Everyone isn’t getting hurt equally. The Bloomberg article breaks it down by credit grade with a chart from the NY Fed:

This chart shows that loan performance is essentially the same for credit scores of 660 and higher. For scores ranging from 620-659 (the red line), there is a definite uptick from 2% in Q1 2016 to more than 3% in Q1 2018. The biggest change in delinquencies is for credit scores under 620, or sub-prime borrowers. You can clearly see the trend has been sneaking upwards since 2014, and 8% of all sub-prime auto loans were delinquent in Q1 2018.

As an auto lender, the more sub-prime borrowers you have, the more susceptible your portfolio is to these economic trends.

How Many Ways Can Your Borrowers Pay?

This may sound like a silly question, but most auto lenders only accept payments via checks or ACH/automatic drafts out of customers’ bank accounts. If borrowers are lucky, the more ‘tech-savvy’ lenders let their customers go online to make one-time payments. For many auto lenders, the way borrowers can pay in 2019 is not that different than the way they paid in 1989. Offering multiple convenient ways to pay can be a gamechanger and significantly reduce the chance of delinquency.

Do you have an online portal where your borrowers can set up recurring payments, not just one-time payments? Can your borrowers make payments with their debit cards or bank accounts 24/7/365, even when your business is closed? With an online web portal, customers can self-serve and “set it and forget it” by scheduling recurring payments.

Do you have an app or text pay so your younger borrowers can pay on their phones?

Some late payments are simply due to forgetting what day it is. You can prevent these late payments with an app that pushes notifications to your customers’ mobile phones on a customized schedule before payments are due. Text pay allows you to send payment reminders and lets your customers initiate and authorize payments with a simple text message. Wouldn’t you like to be top of mind when it comes time for borrowers to choose which bills to pay first?

Answering ‘yes’ to any of these questions could mean lower costs of managing your receivables, a more streamlined approach to your portfolio, and enhanced returns.

Conclusion

Thanks to online portals, mobile apps and other payment technology tools, there are a ton of ways for auto lenders to get paid. You simply have to implement these methods.

If these new payment methods meant

  • less effort spent on chasing down payments
  • lower delinquencies
  • higher returns and
  • fewer collections employees (or fees to an outside party)

…then why wouldn’t you use them?

The economic environment is only getting more difficult for ensuring you collect on what’s due to you. Make it easier for yourself by embracing modern payment technology methods.