Paper checks are not going away yet


As much as we’d like to think that the days of writing and sending checks to pay bills are over – or even close to being – there are still plenty of reasons why businesses pay attention to those who prefer. settle their debts the old-fashioned way. fashioned way.

In the November-December edition of The Disbursements Tracker, a collaboration between PYMNTS and Ingo Money, we learn that approximately 38% of business-to-business (B2B) sales for small and medium-sized businesses (SMEs) come from paper checks for advertising. . one-off purchases, even in an environment where digital payments are the norm and are used for regular purchases.

Our research reveals that delays in issuing, receiving and processing these payments can lead to 30% of payments being received up to a month late. The transition to automated payment systems has been slow, with buyers not being motivated to stray from conventional approaches.

“Digital disbursement solutions that decouple buyers from sellers can allow buyers to serve multiple ad hoc recipients and improve efficiency,” the report says. “When incorporated with discounts for prepayments, these solutions can encourage buyers to switch to digital disbursements for ad hoc payments. “

The latest Disbursements Tracker also examines why the demand for consumer and small business loans has increased over the past two years, but the cost of servicing these loans has risen 173% at a time of average wait times. apparently longer service centers.

Digital solutions integrated with self-service options can help lenders satisfy their customers and answer their questions faster, while improving collaboration and integrating existing systems. This is accompanied by a holistic digital approach and automated data analysis that will improve both consumer engagement and risk assessment.

It probably also explains why 70% of consumers want the ability to access instant on-demand payments. It is now up to financial institutions to meet the needs of these customers, or lose them to someone else who will.

Meanwhile, Anuj Nayar, chief financial officer at LendingClub, tells PYMNTS how the peer-to-peer lending company uses internal analytics to speed up loan approvals and mitigate risk. Among these data points: 60% of consumers and micro-businesses see instant payments as essential elements of loyalty and 68% of payers are willing to pay a fixed fee to offer free instant payments to customers.

LendingClub has automated most loan approvals and is getting those funds to borrowers faster than ever before, Nayar told PYMNTS. Automated data analysis combined with personalized service accelerated loan approvals for known borrowers, he said. That said, the company is ensuring that the addition of automation does not alienate those who live in so-called disadvantaged populations.

The report also takes a closer look at the evolution of the digital lending space, and we take an in-depth look at how lenders can better meet the needs of borrowers – and increase their own bottom line at the same time – by removing a lot of the paperwork. cumbersome and use technology to streamline loan approvals and management practices.

PYMNTS Monthly Disbursement Tracker examines the latest trends and developments shaping the rapid disbursement space and why Instant Payments are making waves across industries around the world.

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NEW PYMNTS DATA: AUTHENTICATION OF IDENTITIES IN THE DIGITAL ECONOMY – DECEMBER 2021

On:More than half of American consumers think biometric authentication methods are faster, more convenient, and more reliable than passwords or PINs, so why are less than 10% using them? PYMNTS, working with Mitek, surveyed over 2,200 consumers to better define this perception gap in usage and identify ways in which businesses can increase usage.


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