The pandemic has altered preferences for processing government payments with shifts toward electronic billing. Learn how EBPP is changing public sector banking.
One of the most interesting developments during the coronavirus pandemic was a change in consumer expectations that extended beyond the private sector. People that discovered new ways to conduct meetings, shop for supplies, and order from restaurants – and now have new expectations for future services and purchases – also changed their expectations for government payments and services. Just like stores or restaurants that lose customers by not adding curbside pickup and contact-free delivery, they risk losing citizen satisfaction.
In other words, now that citizens know they can avoid the DMV line by going online, they may never return. In the future, they will likely check to see if online alternatives are available for their payments and services, and if not, they will wonder why. The options discovered during the crisis changed their expectations forever. However, the pressure to offer more digital options creates opportunities and benefits that extend far beyond an improved consumer experience. Digitization of payment and billing not only offers a seamless experience for citizens – it also saves time and money through cost and operational efficiencies.
From “in line” payments to online ebills
State and municipal governments faced some of the same challenges as private businesses when COVID-19 swept through the nation. Buildings shut down and employees set up remote offices, yet citizens still needed their government services. And just like private businesses, some government entities were better positioned to service consumers and process payments in the new environment than others.
For some, providing services online and over the phone only required minimal adjustments – especially if they had a robust website and already accepted digital payments. For others, simply processing paper payments created major challenges, scanning checks or using a digital lockbox to make deposits while reconciling and reporting manually.
Yet that effort became necessary, because people changed their habits. Even when lockdowns ended, people moved away from crowded places and toward contactless payments.
“You don't want to stand in line with 20 other people and hope they are social distancing. You don’t want to touch the paper that they touched or the pen they used to sign,” says Lucy Diasio, Senior Vice President and Group Product Manager for Digital Receivables at U.S. Bank. “We’ve seen the volume of online payments shoot up across the board.”
End-to-end electronic billing platform for citizen satisfaction
For state and local governments, the most comprehensive solution to citizens’ desire to move from “in line” to “online” is electronic bill presentment and payment (EBPP). As the name suggests, EBPP systems provide end-to-end support throughout the bill pay process, including alerts and communication, self-service options, multiple payment methods (including ACH and credit cards) and multiple communication channels (from phone to computer to text). Learn more about getting best-in-class electronic bill presentment and payment with U.S. Bank eBill Service.
These full-service websites are made for managing regular, periodic billing, like utilities payments, but are also ideal for individual transactions, like tax payments, or online license transactions – including pets licenses, hunting fees or the DMV.
The consumer benefits of an EBPP seem obvious:
- Contactless – Eliminates paying in person and going to (or waiting at) a crowded building.
- Efficiency – Access information and payment with the click of a mouse instead of standing in line waiting for a person.
- Reliability – Digital payment allows quick visibility to the payment process rather than waiting for confirmation that a mailed payment has been processed.
- Satisfaction – Paying when and how they want improves citizen engagement.
Benefits of an EBPP for public sector banking
In addition to improving citizen satisfaction, full-service digital billing and payment systems also create cost and operational efficiencies at a time that government entities are facing declining budgets.
“Updating how you process payments is a win-win for both government agencies and citizens. It can reduce operational costs and help you do more with less,” Diasio says. “Less time spent by staff responding to inbound payment inquiries by phone and email. Less balancing and reconciling. And reporting will become more automated, which also helps free up staff to work on other activities and projects that benefit the public. You can even encourage timely payer behavior with integrated communications and reminders.”