Citing a gap in the market for real-time loan repayments to financial institutions, bill payment provider Payveris has launched Loan Payments, a service that can handle payments by debit cards and through the automated clearing house, as well as ‘cash.
The new service comes in response to what the Cromwell, Connecticut-based company said has been a difficult repayment experience for bank customers who are not account holders with the lending institution. Loan customers can make payments through the new service via a variety of methods, including online, mobile, text and apps from PayPal, Amazon Alexa and walmart. They can also pay directly from their bank or credit union, says Payveris.
“Whether it’s a car loan, personal loan or mortgage, the days of consumers using a coupon book are over,” says Marcell King, chief innovation officer at Payveris, in a press release. “When financial institutions make it harder to accept and receive payments through coupon books or legacy loan payment systems, borrowers are less likely to consider them for their next loan.”
The key, according to the company, is to match the payment options available for loan repayments at banks with the range of methods available to consumers to shop. This strategy not only keeps customers happy, but also helps reduce overhead resulting from repeated inbound phone calls, Payveris says.
King argues that while disgruntled loan customers cannot easily move their accounts elsewhere, moving to faster, smoother payments can help build loyalty and turn those customers into users of other services, and possibly incumbents. of account. “In today’s lending landscape, financial institutions that are successful in modernizing payments are strengthening their relationships with their customers,” he says.
The new technology was developed by a billing technology company Paymentus Holdings Inc., which acquired Payveris late last year in a deal valued at $152 million. Payveris claims that its platform serves more than 265 financial institutions.