Easy Debt Collection Payments through Chat

“In the US, Millennials seemed more eager to pay with digital and mobile wallets when shopping online, a 2020 survey revealed.” - Statista

 Whether you’re a retailer looking to drive product sales, or a business looking to increase debt payment turnaround time, then you need to offer a more effective payment solution. Considering the number of smartphone subscriptions exceeds 6 billion, it seems the logical next step is to offer your customers a payment option via their mobile phones. Chat 2 Pay is the simplest and most effective option currently available, facilitating faster payment for better debt collection.

What is a chat payment?

Chat payments, SMS payments or text payments are all names for the same function, which is paying for goods or services via your mobile phone. The business sends a personalised invoice with a link to a secure site where the transaction is finalised. 

Why is chat payment preferred?

There are many reasons why chat is being used for debt collection, but many businesses are still far behind in using this ground-breaking technology. Here are a few reasons why modern consumers prefer it, and why Chat 2 Pay should be the go-to payment tool. 

1. No security concerns

In the past few years, we’ve seen cybercriminal activity spike exponentially as hackers continue to find new ways to access personal information, financial systems and more. However, a Text 2 Pay system actually includes an additional layer of security through biometric data (facial recognition or fingerprint) and password access. This means you’re remaining compliant while offering consumers sufficient security. 

2. Goodbye to cash

The ease with transactions taking place via mobile phones means that nobody carries cash around anymore. It’s also an additional security measure! As we move toward a cashless society, people are wanting much more convenient ways to pay for goods on the go. Text 2 Pay mobile options meet this need!

3. Better engagement

For companies having to follow up on debt collection, customers feel more comfortable dealing with the problem via text message rather than having to engage with an individual. It’s only normal to feel embarrassed when owing money, but there’s less embarrassment when debt collection is communicated via chat. The payment link can also be included with the text. 

4. More time saved

People often procrastinate on financial issues because it’s time-consuming and stressful. By facilitating payment via chat, the entire process is completely sped up and you’re more likely to get that outstanding cash now. The automation of debt collection also decreases the demand for customer service agents so they can focus on other business tasks.

5. Pay remotely

People don’t want to go into grocery stores or restaurants to order food, they don’t want to shop for clothes or buy personal items in person. Everything is done remotely these days, which is why Text to Pay is such a valuable offering. They can get what they want when they need it without having to travel.

6. There’s more personalization

By integrating with customer relationship management (CFM) software, your business chat is able to personalize the debt collection process by addressing the individual by name and delivering the message at a convenient time. This makes it more likely that the payment will be made.   

7.  The touchless environment

If Covid-19 taught us one thing it’s how quickly germs can spread via contaminated objects. People are much more aware of the transmission of viruses and diseases which means they don’t want to be dealing with cash or handing over credit cards to people anymore. Chat to Pay means that they only have to deal with their mobile phones, without the need for touching or sharing objects at all. 

What are some tips for debt collection via chat?

If you want to increase the likelihood of payments being made when you communicate with a customer via chat, then there are a few debt collection techniques you can incorporate into your process.

-  Send SMS reminders

Avoid getting to the point where you’re battling to run your business because of a lack of cash flow by sending SMS reminders to your customers about payments that are due. It’s best to send the reminder a week before the amount is owed, and you can even send a second reminder a day or two before as well.

-  Automate SMS notifications

The great thing about Text 2 Pay is that you can automate SMS notifications to save you time and money. These automated reminders will also ensure all messages are sent on time as it reduces the risk of human error. This is also great for companies that offer a monthly subscription as the reminder is sent at the same time every month so there’s no chance of forgetting. Remember that you don’t want to harass customers, just nudge them gently to pay now.

-  Facilitate payment

Chat 2 Pay will allow the customer to make the payment as soon as they receive the SMS reminder so make sure this is included in your business SMS solution. Many customers will make the payment immediately so as not to forget, as it’s such a simple process. 

Why are businesses using Clickatell’s Chat 2 Pay?

Clickatell is an industry leader in the world of chat commerce, innovating chat solutions for businesses of all sizes. When you partner with Clickatell, you’re able to: 

• Accept payments worldwide thereby expanding your global footprint.

• Offer customers a payment method that they actually prefer.

• Ensure your customers’ data is protected through integrated fraud and security services.

• Improve the customer journey from browsing for goods through to purchasing all on the chat platform.

• Reduce the cost of running your business while further driving sales.

• Deliver a contact-free and convenient checkout experience from anywhere.

By incorporating Clickatell’s Chat 2 Pay system, you’re giving your customers an easy way to pay off any outstanding debts or bills, while encouraging faster payment once the sale is finalized. Contact Clickatell today to find out more!