How to deliver the self-service payment options buyers want

More than two-thirds of U.S. car buyers conduct at least some of their shopping experience online before ever setting foot in a dealership for a test drive, according to a report by J.D. Power last year. They research cars, view listings, compare models and explore financing options, and more than half do it all using a mobile device.

Notably, this increased level of self-service coincides with improved customer satisfaction. A Cox Automotive survey released in 2021 found that 72 percent of car buyers reported being "highly satisfied" with the overall auto shopping experience, up from 60 percent in 2019. Yet those customers aren't always offered a seamless path from digital shopping to digital loan payment.

With the right payment platform, auto lenders can easily grab the opportunity to expand self-service loan payment options.

According to a bill pay study, the majority of consumers struggle to pay bills accurately and on time:

• More than half (53 percent) give themselves a grade of C or lower in knowing when their bills are due.
• About two-thirds (67 percent) of 18- to 29-year-olds and over half (54 percent) of 30- to 44-year-olds say they feel disorganized when trying to manage or pay their bills.
• More than 1 in 10 (15 percent) of consumers with auto loans report they "frequently" or "always" pay late.

Consumers say they want easier solutions to pay their bills:

• Nearly 1 in 5 adults (19 percent) say they paid a bill late because the online process was so complicated they became frustrated and didn't complete the payment.
• More than half (52 percent) say they have trouble remembering passwords and logins; 42 percent struggle to keep track of due dates; and 23 percent say it's difficult to keep track of the amount owed.
• For nearly 1 in 3 adults (30 percent), navigating biller websites is a problem.

With the right payments platform, auto lenders can create a seamless self-service payment experience. Here are four must-haves to look for when selecting a platform.

1. QR codes: These scannable links can be used on paper statements to drive adoption of online self-service. QR codes enable borrowers to pay their auto loan bill without needing to navigate a website or remember passwords and account numbers.

2. Digital wallets: of all consumers (35 percent) and just shy of half (43 percent) of those 44 and younger say being able to store their bills in their Apple or Google wallet and pay using their smartphone would make the process easier.

3. Peer-to-peer payment channels: Peer-to-peer payment channels such as Venmo and PayPal have grown exponentially over the past several years.

In one survey, 85 percent of respondents used PayPal in the past year, and 32 percent used Venmo.

Auto lenders can now enable PayPal and Venmo for auto loans. According to the bill pay study, 30 percent of consumers overall and 38 percent of those 44 and younger said being able to pay using Venmo or PayPal would make it easier to pay bills on time.

4. Pay by text: According to the Pew Research Center, texting is the primary way those age 50 and under communicate. In fact, 97 percent of smartphone users use their texting app every day.

For this reason, offering bill payment by text is a no-brainer. Through texting, lenders can get borrowers directly to their verified payment flow with two easy clicks.

Today's car buyers are savvy in self-service shopping and want that same independent, digital experience to carry over to their auto loan payments. Now is the time to give them an easier, more convenient way to pay back their loans.