By running edge Editorial team
Repay Holdings Corporation (NASDAQ: RPAY), a leading provider of vertically integrated payment solutions, earlier this week announced new research examining Americans’ perspectives and attitudes toward loan repayments, and what what their suppliers can do to create a better experience. The consumer research, commissioned by OnePoll, surveyed 1,000 American adults with at least one loan, in May 2022.
The survey found that many Americans aged 18 and older are exposed to consumer loans in one way or another. Nearly half (48%) of survey respondents have 3 to 4 personal and auto loans, and 87% have between 1 and 4 loans in total. Most respondents also said they were currently paying off home loans (60%) and mortgages (59%). Surprisingly, more than 90% of respondents aged 77 and over have at least one loan that they repay.
With loans being a high priority and non-discretionary item for many consumers, how individuals are able to repay them is crucial when selecting a loan provider. Nearly two-thirds (65%) of consumers said they would likely choose their loan provider based on the payment options offered. This constituted the physical way consumers paid – whether online, in person, or a combination of the two – and their preferred method of payment – including cash, debit card, ACH and check.
In a written statement released earlier this week, REPAY’s CRO, Susan Perlmutter, said: “Consumers across the country have been asking for more convenient and easier ways to pay their personal loans, hoping to match the ways they can pay for other goods and services. . As businesses continue to adopt payment technology and diversify and digitize the payment methods available to consumers, the lending experience will improve for both borrower and provider. With consumers viewing payment options as the primary criteria for choosing a loan provider, there’s no reason for companies to stick with payment methods of the past.
Just over half (52%) of consumers prefer using a debit card to make loan payments, more than double the number of consumers who prefer using other payment methods like cash (19%), l ACH (14%) and checks (6%). The shift to digital payments becomes even more apparent through loan repayments, as 73% of consumers prefer to at least partially pay their loans online, and 34% prefer to exclusively pay their loans online.
Consumers also have a wide range of preferences for which payment channel they prefer, often changing from generation to generation. Overall, consumers are more likely to choose to pay through an online web portal (26%), by phone (26%) and through a mobile app (23%). Half of consumers aged 77 and over prefer to make their loan payments over the phone, and 44% of consumers aged 18 to 25 prefer to pay through a mobile app, nearly double the amount of any other age group.
The top reasons behind consumers’ choice of payment method include convenience (34%), speed (29%) and security (22%) as their top priorities. These factors are favored by consumers over the associated costs, cited by only 3% of respondents. Data shows that providing convenient and fast payments is no longer just a consumer desire, but a need in order to retain and attract new business.
REPAY’s suite of digital payment technology solutions enables consumers to pay their auto and personal loans using the most convenient method for them. By increasing the number of payment methods offered to consumers, a business is more likely to have a higher success rate in collecting payments, and consumers are more likely to return in the future.