Recurring payments can benefit many different types of businesses. Recurring payments software can help a variety of customer types make more on-time payments. And with this comes numerous positive effects for organizations.
Let us take a closer look.
How a Recurring Payment System Works
Recurring payment software is often incorporated into payment platforms for payment convenience and payment flexibility. Recurring payment functionality allows customers to schedule payments on specific dates. And, on those specific dates, the customer’s account is then automatically drafted for the specified payment amount.
The benefit of recurring payment software or recurring payment functionality is that it allows consumers to pay automatically on dates of their choosing. This often means that businesses can experience more on-time payments, better cash flow, and usually less of a strain on their call centers.
The Types of Business That Can Benefit from Recurring Payments
Many different types of businesses and customer types can greatly benefit from recurring payment software.
Below, we will look at four different types of organizations and how automated payments can enhance the payment experience for both their business and their customers.
1. Automotive Dealerships
Most everyone is familiar with the monthly car payment. Especially companies who finance vehicles and must then sort out missed payments from their customers every month.
Sometimes missed car payments are not the result of customers not having the financial resources to make a payment. Frequently, customers simply forget to make their car payments. This is where recurring payments can be a big help.
Companies that use payment systems that incorporate recurring payments software allow their customers to effortlessly make automatic payments every single month.
This is just one example of how recurring payments can improve payments for both organizations and customers.
2. Rent-to-Own Businesses
The rent-to-own (RTO) business model serves customers described as “moderate-income customers.” These are customers who have no credit history, bad credit, or simply do not have the financial resources to purchase larger ticket items.
Although the RTO model is often used by people who cannot always make their payments, recurring payment plans can still be effective in helping organizations receive payments on time.
Why not offer customers making regular payments on their big screen TV the option to do so automatically?
3. Law Firms
Law firms are another type of organization that can increase the number of on-time payments by using recurring payments.
Law firms who are collecting debts or simply want to make payments more convenient for their clients can offer payment plans by using a payment platform with recurring payment functionality.
By offering payment plans through automated payments, law firms can not only increase on-time payments but also may reduce the resources needed to seek payments from clients who do not pay on time.
4. Collection Agencies
Collection agencies face many challenges when trying to collect payments from customers. Often, debtors avoid any form of communication from debt collectors.
By using a payment platform with recurring payment functionality, customers can often feel as though they have more control over their payment plans.
In the end, setting up an automated plan can be a very workable solution for collection agencies collecting on debts. Again, the use of recurring payment software can lighten the load on human resources. This, in turn, can help collection agencies save money long-term.
5. Dental Practices
Dental work can be expensive, especially for those who do not have dental insurance. But everyone needs dental care.
By utilizing automated payments, dental offices can work with clients to up custom dental payment plans. Not only will this help dental patients without insurance get dental care, but it can also help dental practices reach new markets.
A Payment Platform with Recurring Payment Software and…
PaymentVision’s new PayWeb360 payment platform has recurring payment technology built in.
Available on any device, the PayWeb360 payment gateway allows customers to easily set up recurring payment plans.
Additionally, PayWeb360 payment technology is PCI compliant, ADA compliant, multilingual, customizable, and has been shown to increase payment completion rates by 300%.
PaymentVision is a technology company that offers a multitude of payment products. One major plus of PaymentVision products is that regardless of the payment method a consumer uses, customer data is all maintained and updated on the backend.
And with law firms, our payment technology seamlessly integrates with multiple types of attorney software.
Recap: Businesses That Should Consider Recurring Payment Software
Recurring payment technology can serve both customers and organizations when it comes to making payments on time.
Today, many payment platforms include recurring payment functionality. Car dealerships, rent-to-own businesses, law offices, and collection agencies can all benefit from offering their clients and customers automatic payment options.
Recurring payment software allows consumers to make payments on a defined schedule. This often improves the payment experience for all parties involved – as automatic payments can increase the number of on-time payments and improve cash flow for organizations.
Interested in accepting multiple types of payments from any device? Let’s chat.