If you go to a store or a website and they don’t have what you are looking for, do you settle for something similar or go somewhere else and get what you want? In a lot of cases, you’re not going to settle for what’s being offered to you. You’re going to go where they have exactly what you want. In a lot of ways, what is on your portal is the same experience. If you think offering options like PayPal or Venmo are silly, you are likely losing out. If you don’t offer payment options that consumers want to use, 70% of them are going so shop somewhere else, according to a published report.
This behavior, observed in the retail world, is a crucial lesson for collection agencies, debt buyers, fintechs, banks, and credit unions. More consumers today are using payment portals to settle their debts, and they expect the same level of convenience and variety as when making purchases online. A PYMNTS Intelligence report shows that 70% of consumers are highly influenced by the availability of their preferred payment methods. If those methods aren’t available, they’re likely to abandon their transaction — just like in online shopping.
The data further reveals that online marketplaces lead the way in offering diverse payment options, with 53% of shoppers preferring these platforms over brand websites. This disparity leads to higher abandonment rates on brand-specific sites. The lesson for debt collection professionals? Offering only a limited set of payment options can be detrimental to your recovery rates.
Younger generations, such as Millennials and Gen Z, are more prone to abandoning transactions, while older consumers are more likely to complete them. Understanding this generational divide can help optimize your portal’s payment options, ensuring that you’re offering what both younger and older consumers need.
In today’s digital-first world, expanding payment options and adapting to consumer preferences is not just a good idea — it’s essential. By ensuring your payment portal mirrors the ease and convenience of popular e-commerce platforms, you can significantly reduce abandonment and boost collections.
