Using Mobile Technology to Improve the Bill Payment Process

WILL YOU PAY ME NOW?

Utility Payment Conference

Today’s Discussion Billing and payment philosophies Consumer payments behaviors MOBILE as an emerging payment channel Customer Case study Q/A

An interesting observation

Untapped Payment Potential

Address Margin

Concerns

Process Efficiency Goals

Reduced DSO

Improved Brand Awarene

ss

Enhanced

Consumer

Experience

“If it’s not broken….

leave it alone.”

Many organizations do not have a consistent payment strategy

Payment processes randomly evolve to include new technology and online payment platforms

Eliminate fractured payment processes

The argument for optimizing….

Match internal goals with consumer demand

Today’s Payment Channels

Paper Lockbox

• Typically outsourced to bank or 3rd party provider

• Check and card remit options

Walk-In

• Authorized Agent or Business Offices• Primarily cash and check remit options

Auto Debit

• Typically outsourced to 3rd Party Provider

• ACH and card remit options

Web/IVR Payments

• Typically outsourced to 3rd Party Provider

• ACH and card remit options

Home Banking

• Reconciliation through bank lockbox or by 3rd party provider

• ACH or check remit options

Mobile

• Typically outsourced to 3rd Party Provider

• ACH and card remit options

Mobile ImplicationsPotential increased credit card processing fees

Opportunity to raise e-Payment and e-Bill adoption ratesIntegration of mobile bill payment with home banking capabilities; posting issues

Positive Payment Behavior

Right Place

Right Time

Right Method

You need your customers to pay the bill...

But what’s really important to your customer?

How Do I Select My Channel?

The ability to pay any time plus using a variety of funding methods drives satisfaction and loyalty

Source: Consumer Trends Survey, 2011, Fiserv, Inc.

• Shifts in consumer payment behavior is driven by financial issues

• Time sensitivity remains a big driver

Time to Pay…Seize The Moment!Payments Volume Differential Consumer Choice of Channels

• Trends show rising preference of e-payments

• Biller Direct and Home Banking preferences are tied • 74% of consumers believe that

payment channel options are important

Source: 2011 Billing Household Survey, Fiserv, Inc.

Average Response Times

30-42 DAYS

40 SECONDS

3.2 DAYS

Source: Northwestern University, 2011, Lifestyle Communication

Gen Y Behaviors• Gen Y consumers expect an immediate, virtual customer

experience• Technology is their channel; mobility is a must

Rapid Pace of Technology

Multi-Use Devices are

gaining popularity

Mobile Phones

Tablets

Mobile Access

Access to mobile technology continues to grow

Gap between “Feature Phone” and “Smart Device” ownership continues to narrow

Why Mobile Now?

What is the most common activity when visiting a biller website by

mobile phone?

• 30% of people with mobile phones have visited a Biller website• 6MM users have made at least one mobile bill payment• 74% of all cell phones are utilizing SMS Text Messaging

80% of mobile adoption will be Smart Phone by 2015

Source: Javelin Research 2011

Rising Costs of Mobility

Explosive Growth predicted for mobile payment and mobile banking

As mobile payments grow, so does the use of plastic….

What does this mean to your costs?

How Would You Describe Your Mobile Device?

Wouldn’t it be great to hear the customers say this about paying their bills?

CCPS Profile

Division of Consolidated Communications Consolidated Public Services is a single,

coordinated source for providing the communication backbone for county and state correctional institutions.

Since 1984, Consolidated Communications Public Services (CCPS) has provided telecommunications solutions that give correctional institutions the best technology and dedicated support in the industry while maintaining inmate and family morale with reliable phone service.

Decision to Go Mobile

Key Consideration: New opportunity for our

customers, we are always looking for ways to take a payment from a customer.

Revenue generation• Objectives of program:

– make it easier for everyone involved: user, customer service rep, IT, and make it efficient/easy for the customers.

Choosing a Mobile Partner/Program

• Existing payment vendor

• Easy to use solution

• Turn-key approach – minimal IT

resources required

• SMS based; additional Smart Phone functionality

Gearing Up

Finalize Agreement

and Requireme

nts

Development and

Integration Testing

Client Review and

ApprovalLaunch

• Decision in Q1 2013; initial implementation Q3 2012

• 6 week project plan• Implementation support includes project

management, training, and customized reporting

Week 1 Week 2-4 Week 5 Week 6

Adoption and Education 68% increase in customer adoption in last 3

months We hope for increased adoption through

targeting specific customers Website Highlights Customer Service/Collection Calls IVR recording Bill Inserts Existing e-billing Registered Users

Web Redesign

So What…

What does this mean for you?Are you ready to “Mobilize”

• Disposable income is shrinking

• Payment cycles are getting longer

• Consumers face difficult decisions when it comes time to pay the bills

• “Cross the Channel”

Thank YouSteven EstroffVice PresidentFirsTech Payment Solutions(770) 431-0936sestroff@firstechinc.com

Kelly ColeGeneral ManagerConsolidated Communications Public Service(217) 258-2986 (office)kelly.cole@consolidated.com