CONSUMER CHOICE
The Case For Streamlined
Payment Solutions In Non-Retail Industries
Payment Expectations
Most of us don’t want to spend any more time making a payment than we have to, whether it’s for a medical expense, monthly bill or something else.
Consumers today expect choices in their payment experience and for all of those choices to be seamless, secure and trusted. However, payments innovation hasn’t progressed evenly across industries, and some have been slower to provide the options consumers prefer.
To find out more about consumers’ payment experiences, American Express and Forbes Insights conducted a comprehensive survey of U.S.-based consumers who had made payments to organizations in government services, education, utilities, residential rent, charities, healthcare and insurance. Respondents were asked to evaluate their preferences and pain points.
Here are three findings that stand out:
- Security is the most valued factor when making any kind of payment, as identified by 94% of respondents. (See Figure 1.)
- Speed and convenience are also important, particularly for younger respondents.
- Credit cards are by far the preferred way to pay, with 73% of respondents ranking them as one of their top three preferred payment methods. (See Figure 2.)
More than anything, people want choice when making a payment, and survey results suggest that providers of goods and services stand to lose about a quarter of their customer base for simply not offering the payment method people most want to use. Across most of the studied industries, if the option were available, nearly 1 in 4 consumers said they would switch to a competing merchant or service provider if they could not use their preferred payment method.
Here are some of the top insights consumers shared about their recent payment experiences in each industry.
Healthcare: 54% prefer to use a credit card, and 87% said it’s important that healthcare providers offer the payment method they prefer.
Key Finding: Healthcare, along with utilities, had the highest percentage of consumers saying it's important that businesses offer their preferred payment method.
Utilities: 63% would set up regular recurring payments or autopay for their utility bill if they could, and 13% said that the payment process took too long.
Key Finding: Consumers want a set-it-and-forget-it option for utility payments.
Insurance: 86% said it’s important for insurers to offer the payment method they prefer, and 24% would switch insurers if they could not pay with their preferred method.
Key Finding: Insurers that do not offer preferred payment options risk losing customers.
Government Services: 55% feel frustrated when credit card payment options are not offered when making government payments, and 15% encountered an issue recently because their preferred payment method was not accepted.
Key Finding: The lack of credit card options fuels frustration with goverment service payments.
Residential Rent: 60% would set up automatic payments, regardless of method, to cover residential rent, and 41% feel frustrated when credit card payment options are not offered.
Key Finding: Given the importance of convenience to tenants, landlords may want to reconsider how they accept rent payments.
Education: 41% feel frustrated when multiple steps are involved in making an education-related online payment, and 21% said the process took too long.
Key Finding: The duration and number of steps required to complete a payment in education affects consumers’ perception of the payment process.
Charitable Donations: 45% are frustrated when they are required to disclose banking details because credit cards, digital wallets or peer-to-peer payments are not accepted.
Key Finding: Disclosing personal information is a concern — and it’s one important reason people want secure choices when making charitable donations.
Why Payment Options Matter
As service providers consider creating a payment experience that is seamless, secure and accepts preferred payment methods, here are the five qualities consumers value most:
Choice: Consumers want choice in how they pay. In every industry, the majority say it is important that providers accept the payment method they prefer.
Security: Most consumers expect organizations that request and process payments to maintain strong security to protect their data and credit. Eighty-five percent agree that the reason they appreciate having multiple payment options is because it allows them to choose the method they find most secure. (See Figure 3).
Convenience: The majority of consumers agree that the ability to view account details and pay bills in one place is a valuable feature that creates a seamless customer experience. Many respondents say they become frustrated when asked to disclose banking details because preferred options are not accepted.
Speed: A significant number of consumers would like to spend less time paying their bills. When asked to pick which innovations they’d most like to see, they favored one-click payments, processing within 30 seconds and ending multi-step payment processes.
Rewards: More than two-thirds say the ability to earn rewards is an important factor when making any type of payment. According to one respondent, the points make up for the time spent paying bills—a counterweight to what can feel to some like a time-consuming process.
The Bottom Line
With innovation on the rise, there’s potential for even greater process efficiency, faster payments and more targeted products and services. Every organization can take advantage of payment innovations and listen to what their customers want: a secure, convenient experience, and most of all, choice.
DEBORAH ORR
Forbes Insights Contributor
Report Commissioned by American Express
Insights by Industry
Methodology
Forbes Insights, in partnership with American Express, surveyed 2,507 U.S.-based consumers in September and October 2024.
Respondents represented age groups including 18-28 (25%), 29-43 (25%), 44-59 (30%) and 60 or older (20%). Half identified as male, 49% as female and 1% as nonbinary. Respondents answered questions about one or two industries where they made a payment in the last six months across: government services (29%), education (27%), utilities (27%), residential rent (25%), charitable donations (28%), healthcare (27%) and insurance (26%).
