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Purchase Bill Pay Kiosks With American Rescue Plan Funds

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Still have COVID Relief Funds available?

Get a bill pay kiosk…

The deadline to submit is quickly approaching. Many local governments purchased U.S. Payments (USP) PaySite® bill pay kiosks as a contactless in person option for utility customers in 2020-2021. With the Treasury’s final rule coming April 1, 2022, local governments have the opportunity to implement a contactless in person payment option to mitigate and prevent potential transmission interactions. U.S. Payments interfaces with many accounting and customer information software providers to process utility payments through kiosk, phone, web, and app channels. 

The last year has had a significant impact on how consumers pay bills. The self-service expectation continues to increase, which inclines utility providers to rethink how they serve their cash-payer demographic. 2021 prompted a significant transition in many industries and PaySite goes the last mile to serve cash payers.

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Cash is Here to Stay

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The Shift to Contactless In-Person Bill Pay

As 2021 progressively gets “back to normal” and society is opening up, many Americans continue experiencing challenges like finding new employment, bills piling up, being at risk of eviction or foreclosure, and lacking access to some services. COVID continues pushing technological advancements that are changing the way we buy products and services, but some Americans are being left “in the dust” based on personal financial situations.

Roughly 25% of Americans are considered cash-preferred, relying on cold hard cash as their primary method of choice when making purchases (Barry, 2019). Consider services like streaming, online shopping, grocery pickup or delivery, and food delivery; cash-preferred consumers lack access to a bank account or credit card to enjoy these services. These disparities are apparent in the seemingly essential utility industry, as a large base of customers prefer paying their bills in person. For large investor-owned utilities, retail networks of authorized pay locations is a marquee component in the industry, but the pandemic is shaping a new era for utilities and how they serve their in-person paying customers. 

The Retail Shift to Self-Service

Traditional bill pay platforms for over-the-counter (OTC) transactions are limiting hours and closing counters. There is now a significant trend toward self-serve payment options, particularly for cash-payers, to combat the COVID closures and scaled-back schedules for these services. Like many industries, there is a shift in the in-person bill pay space, as traditional OTC providers partner with self-service kiosk providers like U.S. Payments (USP) and retailers opt to move to a contactless option to serve customers’ bill pay needs. USP’s PaySite® kiosk satisfies the buzz of ‘contactless’ tech and touts sophisticated payment processing with a simple-to-use customer experience. Just like the grocery shift to self-checkout, retailers have a unique opportunity to automate financial services they offer like bill pay and enhance their services for customers.

But Isn’t Cash Going Away?

Au contraire, mon frère. The Federal Reserve is planning a significant increase in bill printing. The fiscal year “2021 print order of 7.6 to 9.6 billion notes is an increase of 1.7 to 3.8 billion notes, or 30.6% to 65.9%, from the final FY 2020 order” (Board of governors of the Federal reserve system, 2021). This planned increase is influenced by the fact that “the demand for U.S. currency rose nearly $1 trillion in 2020 from $1.8 trillion to $2.07 trillion” (Torry, 2021). According to the FED, the 2021 print order is “heavily influenced by the COVID-19 pandemic, as the Federal Reserve has experienced unprecedented demand for currency” (Board of governors of the Federal reserve system). Although businesses continue investing in digital payments, throughout the pandemic, “cash Americans have on hand nearly doubled from pre-pandemic levels” (Delouya, 2020).

Moratoriums are Ending. Here Comes the Cash.

Adding to the many ails pertinent to the pandemic, “twenty-nine to forty-three percent of renter households could be at risk of eviction by the end of the year” (30-40 million people in America could be evicted from their homes by the end of 2020, 2020). Additionally, “an estimated $35-$40 Billion is the current figure for electric utility arrearages” (Customer Survey on Utility Debt, 2021). As moratoriums come to an end, many utilities provide payment arrangement options for customers who heavily rely upon in-person pay methods to settle their debt with the power company. Additionally, this cohort of Americans are much more likely to be classified as cash-preferred, thus increasing the demand for locations offering cash payments. With the impending increase in payment volume and the decrease in over-the-counter locations and availability, there is a glaring disparity many of these Americans are experiencing. Across the nation. Utilities, retailers, and software providers are moving to self-service solutions like PaySite®, to prepare for the influx.

Band it Up

Even as the pandemic winds down, there is still a significant cohort of consumers that utilize cash to pay their utility bills. Consumers are carrying more cash, more Americans are at risk of falling into the cash-preferred demographic, utility moratoriums are ending, and traditional over the counter bill pay is less accessible.  This recipe is propelling the industry to change course and implement self-service in person payment options like PaySite®. Retailers can mitigate long lines and implement another contactless service in the store. Utilities enjoy increased availability for customers and more accurate settlement and reporting. Lastly, customers appreciate the enhanced convenience. Like many industries experiencing a tech leap in response to COVID, the adoption scale of self-service bill pay is on the rise.

References

30-40 million people in America could be evicted from their homes by the end of 2020. (2020, August 07). Retrieved May 11, 2021, from https://nlihc.org/news/30-40-million-people-america-could-be-evicted-their-homes-end-2020

Barry, E. (2019, March 09). 25% of US households are Either unbanked or underbanked. Retrieved May 11, 2021, from https://www.cnbc.com/2019/03/08/25percent-of-us-households-are-either-unbanked-or-underbanked.html

Board of governors of the Federal reserve system. (n.d.). Retrieved May 11, 2021, from https://www.federalreserve.gov/paymentsystems/coin_currency_orders.htm

Customer Survey on Utility Debt (pp. 1-92, Rep.). (n.d.). DEFG.

Delouya, S. (2020, October 08). Consumers’ ‘savings buffer’ accumulated during pandemic could help aid the economy without stimulus. Retrieved May 11, 2021, from https://www.cnbc.com/2020/10/08/consumers-savings-buffer-accumulated-during-pandemic-could-help-aid-the-economy-without-stimulus.html

Torry, H. (2021, January 31). Don’t bank on covid-19 killing off cash just yet. Retrieved May 11, 2021, from https://www.wsj.com/articles/dont-bank-on-covid-19-killing-off-cash-just-yet-11612105200

Closing the Gap on Tech Disparities for Cash-Preferred Customers

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Post-Pandemic Finance

25% of Americans are unbanked or underbanked according to a November 2020 letter written by a group of US representatives (Patel & Ortlieb). This cohort is synonymously referred to as a cash-preferred population, relying on over-the-counter financial services like check-cashing and money orders to pay rent, utilities, etc. The FDIC estimates that cash-preferred Americans spend $3,000 annually in fees for these alternative financial services (Birken).  

Cash is King in Rural America

Rural America has lost 14% of bank branches since 2012. Compounding the lack of access to in-person financial services with 12% of rural Americans missing out on high-speed Internet options; cash-preferred rural communities are at a disadvantage considering the continued digitization of finances (Meachem). The “high-speed” threshold used in this FCC survey is 25 Mbps, suggesting that far more rural communities experience speeds that don’t support modern streaming technology or other services that have a significant impact on increasing efficiencies of daily life (Meachem). These disparities promote the use of cash for daily transactions, rent payments, and bills. As Covid-19 continues the technological progression to more digital daily interaction, the limited access to Internet service widens the gap in rural communities to capitalize on newfound tech conveniences.

Serving Cash-Preferred Customers

Focusing on the utility sector, cash preferred customers experience incongruity considering convenient pay methods compared to those paying with their checking account or credit card. Often, utilities rely on office locations or a network of local retailers to accept in-person payments. This limits the availability of in-person options, as most office and grocery service desks close between 5-7p. Additionally, slow posting times and long lines, in some cases, create a negative perception regarding the experience. Lobbies and service desks remained close in certain areas of the country, further limiting in-person options. Lastly, companies are limiting person-to-person interactions and customers are expecting an advance in self-service technologies.

Bill Pay Kiosks Go the Last Mile

Utilities and telecom companies throughout the US have implemented bill pay kiosks in recent years to alleviate the ails described above and with the continuing shift in culture, there is a thrust in deploying self-service payment terminals. With real-time posting capabilities, indoor and outdoor kiosk models, 24×7 availability, and targeted acquisition of local retail partners, U.S. Payments (USP) PaySite® kiosk provides fast, easy, and convenient in-person payments for customers. PaySite operates on USP’s patented Transaction Management System, touting real-time posting for customers, PCI Level 1 Compliant security, and simple reporting and reconciliation for biller clients.

References

Birken, E. G. (2020, July 28). The Costs Of Being Unbanked Or Underbanked. forbes.com.

MEACHEM, A. (2020, July 27). Why some rural communities lack high-speed internet. Government Technology State & Local Articles – e.Republic. https://www.govtech.com/network/Why-Some-Rural-Communities-Lack-High-Speed-Internet.html

Patel, B., & Ortlieb, P. (2021, February 12). US payments infrastructure perpetuates financial exclusion. OMFIF. https://www.omfif.org/2021/02/us-payments-infrastructure-perpetuates-financial-exclusion/

Coronavirus Relief Fund Extension for Local Governments

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Still have COVID Relief Funds available?

Get a bill pay kiosk…

Congress has extended the deadline for government entity expenditures in response to COVID to the end of 2021. Many local governments purchased U.S. Payments (USP) PaySite® bill pay kiosks as a contactless in person option for utility customers in 2020. With the relief fund deadline extension, local governments have the opportunity to implement a contactless in person payment option to limit person to person interactions. U.S. Payments interfaces with many accounting and customer information software providers to process utility payments through kiosk, phone, web, and app channels.

Below are PaySite kiosk models for installation at an office or at a local retail location:  

    The New Normal

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    Utilities, Grocery Stores, and Convenience Stores are Making In Person Payments Safer and More Convenient.

    Technological Response to the Pandemic

    The Covid-19 pandemic is prompting a widespread leap in technological innovation across the nation. America is growing accustom to delivery, curbside pickup, and comfortability with ecommerce. As markets experience these shifts, what are the implications for utility organizations? As lobbies across the country remain closed, consumers preferring to pay in person are forced to pay through alternative methods. Often, these consumers are unbanked or underbanked and rely on cash methods to make payments.

    Kiosks Growing in Popularity

    Inquiries and orders of bill pay kiosks continue increasing as 2020 progresses. Utilities are protecting staff and customers by implementing kiosks at their office(s) and retail locations. Similarly, grocers with money centers are moving to automated methods to limit over-the-counter transactions. Convenience stores are expanding the services they offer to customers by adding payment kiosks. Kiosks increase the availability and convenience of paying in-person while limiting face to face interactions.

    What is the New Normal?

    Two of the marquee industries falling under the “essential business” category are grocery and convenience store verticals. Americans are still making trips to pick up groceries for the week and as areas of the country implement reopening phases, the quarantine-crazed are getting out of the house. Grocery and c-stores are routine stops for the majority of Americans. Many utilities depend upon these locations as their primary in person pay locations. As grocers look to limit employee to customer interaction, self-service is being adopted across the country. Traditional over-the-counter bill pay is falling to the wayside as grocers are pivoting to self-serve payment kiosks. An added benefit to this shift is the reduction of labor tied to the already thin margins associated with traditional bill pay. Convenience stores are also adoption kiosks as a way to increase foot traffic. Tulsa based, U.S. Payments, partners with many C-store and grocery stores to host the PaySite® bill pay kiosk. Partners enjoy >1,200 incremental monthly door swings and serves as a safer option considering Covid-19.

    What Have We Learned?

    The spread of the virus is propelling industry changes to help keep people safe. Even if the virus fades in 2021, companies have established a safer environment for customers and employees. These changes have potential implications for seasonal flu and future novel viruses.

    Purchase Bill Pay Kiosks with Funds from the CARES Act

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    In response to COVID-19, the U.S. Treasury is distributing funds for “necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019” (CARES Act provides assistance for state and local governments,” n.d.)

    At a minimum, limiting person to person interaction can have an immense impact on eliminating possible transmission events. With in person payments being a major contributor to these instances, government operations are looking to self-service options to reduce office traffic.

    U.S. Payments has arguably the best solution to eliminate person to person transactions with cash, check, or card. The turnkey PaySite® kiosk touts battle tested hardware for placement inside a lobby, in a vestibule, through an exterior wall, or as a drive-thru payment option.  With real-time payment posting capabilities, citizens have the peace of mind to know their payment is promptly reflected on their account and processed in a highly secure fashion. As a PCI Level 1 service provider, U.S. Payments assumes responsibility for customer information and with a nationwide network of technicians, U.S. Payments maintains a kiosk uptime greater than 95% for more than 1,250 kiosks in 47 States.

    With the speculated fall uptick in cases, compounded with seasonal flu, companies worldwide are adopting strategies to mitigate in person traffic and eliminate close proximity interactions. With PaySite, government agencies achieve a more cost effective solution to accept in person transactions; pushing citizens from the counter to the kiosk. Below are all the PaySite models that fit the application you’re looking for and U.S. Payments interfaces with 200+ customer information systems providers.

    Government organizations eligible to receive aid are classified as “a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000” (CARES Act provides assistance for state and local governments,” n.d.). For government entities representing less than 500,000 constituents, state approval may be available to secure CARES Act funds.

    • Thruwall Kiosk
      Outdoor Thru-Wall (Rear Access)
    • Outdoor Bill Pay Kiosk
      Outdoor Thru-Wall or Drive-Up (Front Access)
    • Indoor Bill Pay Kiosk
      Indoor Free-Standing
    • Tabletop Bill Pay Kiosk
      Countertop

    References

    The CARES Act provides assistance for state and local governments. (n.d.). Front page | U.S. Department of the Treasury. https://home.treasury.gov/policy-issues/cares/state-and-local-governments

    Fredericks, B. (2020, April 22). CDC chief Redfield ‘misquoted’ on ‘fall coronavirus outbreak,’ Trump says. New York Post. https://nypost.com/2020/04/22/cdc-chief-misquoted-on-fall-coronavirus-outbreak-trump/