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 on debit cards and via the automated clearing house, as well as in cash.
The new service comes in response to what the Cromwell, Conn.-based company says has been a difficult repayment experience for bank customers who are not account holders at the lending institution. Loan customers can make payments through the new service through 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, Payveris says.
“Whether that’s an auto loan, a personal loan, or a mortgage, the days of consumers using a coupon book have passed,” says Marcell King, chief innovation officer at Payveris, in a statement. “When financial institutions make it complicated 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 payments options available for loan payments at banks with the range of methods available to consumers for shopping. This strategy not only makes for pleased customers but also helps cut overhead costs stemming from repeated inbound phone calls, Payveris says.
King argues that while unhappy loan customers can’t readily move their accounts elsewhere, the move to swifter and smoother payments can help build loyalty and turn these customers into users of other services, and perhaps into account holders. “In today’s lending landscape, financial institutions that succeed in payment modernization solidify relationships with customers,” he says.
The new technology was developed by billing-technology company Paymentus Holdings Inc., which acquired Payveris late last year in a deal valued at $152 million. Payveris says its platform serves more than 265 financial institutions.