Since mid-2020, we've seen a sharp spike in the popularity of digital payment options among people of all ages, especially younger citizens. As government agencies continue to modernize through digital transformation initiatives, it becomes increasingly important to consider citizens' needs and preferences to ensure a steady revenue flow and maintain citizen satisfaction.
This quick guide explains why it's essential for government agencies to seriously consider shifting to cloud-based digital payment systems if it isn't already on their radar.
What Are Digital Payments?
Digital payment is a broad category that includes all electronic payment methods and channels.While the terms may seem interchangeable, it's important to understand the difference between the two.
A digital payment channel is the path a customer will use to send an electronic payment, such as mobile apps orgovernment agencywebsites.
A payment method is the form of payment a customer uses to send funds via a payment channel. Some examples include:
- Digital wallets:A digital wallet or e-wallet is an electronic payment platform that can be used with a computer, tablet or mobile phone. It stores customers' payment information for easy contactless payments and can accommodate various card types, such ascredit, debit and prepaid cards,as well as gift cards, coupons, event tickets and loyalty cards.
- Electronic transfers:More traditional versions of digital payments, such as wireless bank transfers, ACH payments and wire transfers.
- Tap-and-go payments:Physical debit, credit or prepaid cards that wirelessly transfer encrypted payment information using near-field communication (NFC) or magnetic security transmission (MST) technologies. Many digital wallets also use these technologies.
- Digital cards:Digital versions of credit or debit cards. One of the biggest drivers for financial institutions making this shift is speed and convenience, as digital cards can instantly provide payment credentials to customers.
How Does Accepting Digital Payments Benefit Government Agencies?
Implementing a cloud-based digital payment solution can help your agency enhance collections and provide better services to your constituency. Here are some of the benefits your agency can expect from making this shift:
1. Convenience
According toour research,mobile apps are the most popular payment channels at 53%, followed by biller websites at 46% and bank websites at 37%. Convenience is one of the biggest drivers of this shift toward digital payment adoption, as everything you need to pay your bills lives on your phone or other devices.
For example, self-service portals offering on-demand payment solutions conveniently allow citizens to make last-minute payments using their preferred digital payment methods, which can help reduce late or delinquent payments.
2. Accessibility
As consumers continue moving away from traditional payment methods like cash and checks, organizations that collect payments must follow suit. Accepting digital payment methods can help you reach more citizens by enabling them to pay bills using their preferred payment channels.
A streamlined digital payment solution supporting various digital and physical payment methods allows you to accommodate citizens of all ages and backgrounds better.
3. Transparency and Trust
Digital payments have unique identifiers that help payers more easily see and track each transaction in real time. From the moment they submit their payment to the time it finishes processing, all parties can easily check on its status.This immediate access to transaction details assures payers of the payment's progression and fosters a sense of security and reliability in the digital payment process, reinforcing confidence in the system.
4. Payment Security
In an age of growing concern over data breaches and financial fraud, switching to digital options can provide a safer alternative to traditional methods.
Digital methods can help reducetherisk of fraud and theft by eliminating the need to send funds through the mail entirely. Technologies like encryption and tokenization make it easier to verify transactions and protect payment information, keeping your citizens safe.
For example, secure stateless tokenization (SST) is an advanced cryptographic technology that works by replacing sensitive payment information with a completely randomized token. Unlike older forms of tokenization, SST lacks a centralized token database, which better protects user data from hacking attempts.
5. Speed
Although processing times for digital payments can vary, electronic payments help ease citizens' minds by eliminating the need to send cash or checks through the mail. It also gives them more flexibility to make a last-minute payment.
Rather than waiting days or weeks to know that the agency received their payment, they can digitally send a payment in seconds and check its status any time using an integrated online self-service portal.
This capability simplifies accounting operations on your agency's end by increasing visibility into all incoming payments.
6. Greater Control
Putting more power into your citizens' hands can help you boost payment numbers by better accommodating their preferences and needs. Solutions with intuitive self-service platforms allow citizens to manage their accounts by making payments, setting communication preferences and changing payment information at their convenience.
For instance, if a citizen only wants to receive alerts about upcoming payments via SMS text, they caneasily adjust that settingfrom the web portal or mobile app. The process is just as easy if they need to edit their contact or payment information or set up automated payments.
Choosing a digital payment solution with features that benefit both your agency users and citizens is essential for getting the most out of your investment. That's why we're here.
How KUBRA Can Help
If your agency needs a cutting-edge payment solution, consider partnering with KUBRA. Our cloud-based e-billing platform enables you to securely deliver bills and facilitate payments all through one intuitive online interface.
KUBRA EZ-PAY®is our all-inclusive,on-demand paymentsolutionthat supports both enrolled and non-enrolled payments. The platform accepts various digital payment methods so you can offer your citizens unmatched payment flexibility:
- Credit cards
- Visa® debit
- Debit Mastercard®
- PIN-less debit
- Apple Pay®
- Google Pay™
- PayPal®
- Venmo®
We also support awide range of digital payment channels, including web, chat, smart speaker, Pay-by-Text and mobile app.
And you aren't limited to digital channels. Our solutions also cater to traditional and in-person payment options for citizens who may still be hesitant to switch to digital.However yourcitizensprefer to pay, our solution can help you meet their needs and expectations.
Plus, the user-friendly design makes it easy for citizens to navigate the system, manage their settings and make payments without any unnecessary hassle or stress. You'll get more on-time payments, and your citizens will benefit from greater transparency and flexibility.
Learn More About Streamlining Digital Government Payments With KUBRA
Our mission at KUBRA is to help you enhance your citizen experience by offering a suite of fully integrated payment and customer service software products for organizations in various sectors, including government and municipalities.
Learn more about how our products can help by seeing KUBRA'sdigital government agency payment solutionsin action. Contact us today torequest your personalized demo.
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