As part of our blog series on integrated payments, today we’re taking a closer look at lenders and specifically how their customers can benefit from a smoother payment experience.
What Are Integrated Payments?
Integrated payments are becoming increasingly popular with the digitization of payments, and banking as a whole. And while they’ve been around for decades, the industry is booming over the past year. Spurred on by the pandemic—online payments are becoming consumer’s number one choice.
As companies move from cash to digital transactions, as a SaaS (Software as a Service) or ISV (Independent Software Vendor), it’s essential for businesses to look for a reputable provider that can assist with not only making this process seamless but enhancing services for their customers along the way.
Enter integrated payments, which are proving to be beneficial for both customers and ISVs. Integrated payments are the payment processing systems embedded within a specific software application. This specific feature allows the customer to make a purchase within the software versus exiting the platform to complete the sale or using a third-party processing company.
Lenders that have modernized their software offerings to include payments provide a better user experience, thus gaining an advantage over their competitors. Here's why:
Consumers are Picky
It is not easy to satisfy consumers in today’s world.
A report by Ekata reveals that 73% of consumers claim that when creating an account online or processing a transaction on a modern digital platform (such as a lending website) the process should happen instantaneously.
Some other startling results include: 75% of consumers have zero patience for sub-par digital experience due to other options being available. Moreover, 66% of consumers have abandoned opening an account online because the process was taking too long.
Lenders are becoming increasingly aware of these trends. And they are feeling the heat to move quickly in the digital payment space to ensure that customers are participating in a smooth online transaction.
For an industry that once relied on physical cheques, it’s quite evident this will no longer cut it. Consumers are demanding online services. And not just any online service. As payment technology improves, consumer standards skyrocket.
How do Consumers Benefit?
Accessibility: Not only will consumers have access to loans faster, but it’s also more convenient. Applications, payments and collections are streamlined and digital. No tedious paperwork or trips to the bank! Plus, they’ll be able to accept or pay any amount from any bank account.
Security: Consumers will receive bank-grade security to protect their funds and their identity. This level of protection can’t be offered when dealing with payments manually, where there is a higher risk for human error and inefficiencies.
Instant Loans: No more waiting around. If consumers are using lenders, they need cash and they need it now. With an efficient online payment system, the money will be available in minutes. Remember, consumers want it instantaneously.
Enhance your Payment Experience
VoPay’s technology offers a powerful layer that is designed specifically for the lending industry. One aspect of VoPay’s system that allows it to stand out from competitors (and truly benefit the lender and customer simultaneously) is our ability to offer multiple integrated payment options to lenders, in turn, they can provide more payment and collection options at lower costs directly to their borrowers.
To facilitate bank transfers and payouts, the VoPay API integrates into your lending platform. Here's how it works:
The integrated payment revolution is well underway and it’s time for lenders to lead the charge in their respective space. Give the consumers what they want—and give it to them now.
