Launch Your Own Mobile Payment App

Make it easy for customers to pay and stay with your very own mobile payment app.

People use their smartphones for so many things other than making actual calls. In a late 2017 Statista survey, almost one-third of smartphone owners reported that they use their phones to make calls either occasionally, seldom, or never.

Yet, almost two-thirds of smartphone users use their mobile browsers regularly and more than 70% use the messaging functionality regularly or very often. Aside from texting, there are many mobile apps in the Messages category, including Slack, WhatsApp, Asana, Basecamp, Telegram, Discord and more.

The bottom line: people are on mobile apps. A LOT. This includes your customers. In fact, eMarketer conducted a fascinating study in late 2017. The study concluded that people are on their mobile phones for longer periods each day (no surprise there). The surprise, however, was that the time spent in mobile browsers is declining and time spent using mobile apps is increasing. At the same time, the number of apps people are using is dropping. People all over the country, including your customers, are on their phones more, browsing less, and using fewer apps more frequently.

Now is a Great Time to Launch Your Own App

This recipe for more concentrated app usage is an opportunity for your business to make it easier for customers to pay and to encourage your customers to stay with you for the long run. You can do that with your own mobile payment app powered by REPAY technology.

Other than streamlined payments, what are some additional reasons that a mobile app would be useful? Here are a few big benefits to consider.

Value Added Services
Let’s say you are a consumer lender, and on a typical 3-year loan, most of the defaults occur between months 12 and 16. One unique and cool thing you can do with a mobile app is start a loyalty program that encourages on-time payments by offering prizes, cash, reduced payments or lower interest rates on future loans. After all, if borrowers pay the loan off and nothing else changes, wouldn’t you want them to borrow again? And when would you want to implement such a plan? Month 1 or maybe month 8 or 9 leading up to that common default period? It’s ultimately up to you, but a mobile app gives you control and a direct line of communication to your customers.
 
Customers Are Loyal to Apps
In our previous article, Mobile Apps Make Payments Easy, we stated that the most popular payment app is the Starbucks app with over 20 million users. Starbucks has some great features, including a loyalty program, an e-wallet to make payments simple and easy, online ordering, and well-timed and engaging push notifications.

Customers are savvy, and they expect excellent customer service. Having your own app shows your customers you are trying to connect with them and serve them better. Fifty percent of marketers in a recent study listed either Improving Customer Service or Fostering Customer Loyalty as the #1 reason for having a mobile presence. It’s easy to see mobile apps are powerful retention tools.

Is customer retention an issue in your business? An app could be the answer.

Partner on It Instead of Build It

Many of the businesses we work with understand the value of having a mobile app. The hard part is getting started.

We have the perfect solution – the REPAY White Label Mobile App. Since it’s a white label solution, our merchants can use their own logos and brand colors, giving them more credibility with their customers. The app is customizable in many ways – merchants can choose payment options and field configurations and give their customers the option to view balances and payment histories. Customers experience the ultimate convenience of paying through their phones whenever and wherever they choose, and merchants get paid faster and experience greater retention rates and higher customer satisfaction. If your processor doesn’t offer an app or you just want to take a look and see how it works, you can request a demo today and take it for a test drive. You won’t be disappointed!

How Lenders Can Leverage Push Payments

Merchant processing makes collecting on-time payments from borrowers easier and faster for consumer lenders. Consumer installment loans, typically provided by both the traditional storefront lenders and the newer online lending fintech companies, are attractive to borrowers for many reasons. An installment loan is fast, simple, can be inexpensive with a fixed term, and is a great option for debt consolidation, home improvement, or an unexpected expense. In the last year, 34% of Americans have taken out a personal loan, according to a PureProfile survey.

How can lenders effectively leverage payment processing options to fund loans and make it easy for borrowers to repay?

Traditional Payment Practices

The largest marketplace lender, Lending Club, accepts credit and debit card payments online and through pay by phone features. Avant accepts card payments from borrowers through a call into a live operator. SoFi, whose primary loan product is student loan refinancing, does not offer a card payment option at all as most loan servicers in the student loan market require a direct debit from a bank account. With credit and debit card payments so ubiquitous, you would think any public-facing business, including consumer lenders, would offer multiple card payment options.

And you’d be wrong. 

Lenders have a huge opportunity to implement payment processing to not only make repayment easier, but to provide a fast and seamless funding experience. Let’s check out the newest opportunity for lenders – push payments.

The Push Payment Opportunity

Both pull and push payments can make payments faster, easier, and cheaper for both lenders and borrowers. A pull payment is the traditional, well-known payment method – it is initiated by the lender, who pulls the money from the borrower’s account after the borrower provides the account information and payment authorization. Push payments, on the other hand, enable the borrower or the lender to send (or “push”) the money to a recipient one time or on a recurring schedule. Push payments have faster settlement times and lower costs.

There are huge opportunities for push payments within the lending industry. Not only can lenders accept card payments as a form of repayment, they can use push payments to transform the lending experience. Through push payments, lenders can send funds directly to their borrowers’ debit or prepaid cards, and those funds are typically available for use within minutes of authorization approval. With this real-time processing and funding, push payments eliminate the waiting period associated with ACH and paper checks. Borrowers won’t have to make a trip to the bank to deposit a check, and storefront lenders won’t have to carry or handle cash. Another great benefit is that the push payment network is available 24/7/365, which means lenders can push payments to fund loans at any time, any day of the year, including holidays and weekends.

Lenders can use push payments to gain competitive advantages in the marketplace by delivering fast and convenient funding experiences to their borrowers.  Push payments add tremendous value for borrowers and lenders, reducing costs and wait times for everyone.