Paying Bills
The value and demand for walk-in bill payment services is undeniable. It is estimated that over $80 billion will be processed in 2009. In large part, an individual retailer’s bill payment volumes are driven by their physical location, the speed and convenience of their store experience, and the other money services they offer. Additionally, retailers offering bill payment services may stimulate higher transaction volumes by being granted ‘authorized’ status.
So what does ‘authorized’ mean?
By law, public utilities must provide a certain density of walk-in payment locations in the communities they serve. In the last decade, utilities have moved away from setting up their own payment centers throughout the neighborhoods they serve, and instead are partnering with local retailers and bill payment networks to fulfill this obligation. Retailers interested in offering bill payment have the opportunity to be an ‘Authorized’ (aka ‘Contracted’) payment location for certain public utilities (aka ‘billers’).
When ‘unbanked’ consumers call or visit a biller’s website to pay their bill, they are instructed to visit an Authorized retailer to make payment. Retailers benefit from this ‘free’ advertising in increased traffic; and consumers can have their payment immediately post to their account. This is often necessary to avoid service shut-offs. As well, retailers charge little or no fee to the consumer to process these payments.
Authorized retailers see significant greater volumes of bill payment transactions in their store. Businesses find the value of increase foot traffic and greater bill payment volume is worth the trade-off of 75% – 80% lower commission rates than ‘non-authorized’ bill payment transactions.
Tweet this 
Stumble this 
Delicious this 
