43 million consumers will pay for mass payment options
Some 90 million American consumers received mass payments in June 2021 alone, but less than 60% of them were offered the choice of payment method. This reveals a major opportunity for businesses that make mass payments to add payment preferences to the mix, while reducing costs in the process.
This is one of the key takeaways from The Mass Payment report, produced in collaboration with Tango Card, for which researchers surveyed a balanced panel of over 3,900 U.S. consumers on mass payment experiences and preferences. .
Noting that “only 58 million recipients of mass payments in the United States have the opportunity to receive the payments as they wish, but 43 million recipients would be willing to pay extra for the chance to do so,” the news study indicates request which can benefit the payer and the beneficiary.
As the study states, “recipients of mass payments would prefer to have a say in how they receive payments and would be eager to pay extra to be able to do so,” the study finding that 48% of 43 million U.S. consumers who received at least one mass payment in June 2021 are “very” or “extremely” willing to pay a fee to receive mass payments their way.
See also: Mass payment
A considerable market opportunity
With mass payments being widely used to provide incentives, discounts, referrals and advisories during the pandemic and the resulting digital shift, more and more businesses are looking for better ways to channel these funds to recipients of funds. faster and frictionless way that align with their preferences.
For example, the researchers found that consumers received $ 26 billion in rebates in June – the largest increase in total dollar volume of any categories studied – while the average mass payment in June “hit a dollar mark. of $ 157.34, compared to an average value of $ 151.33. last december. That totals $ 21 billion more in mass payments in June than six months earlier. “
As for how consumers want to receive these funds, the Bulk Payments Study states that “digital wallet payments remain consumers’ first choice when it comes to receiving bulk payments. Forty-nine percent of all mass payment recipients say they would choose to receive mass payments through PayPal, mobile wallet, or direct deposit if they could, with PayPal being the most requested digital wallet. Twenty percent of all mass payment recipients would pay to receive payments directly to their PayPal accounts. “
What consumers will pay for a mass payment choice
One fascinating aspect of mass payments is the number of consumers willing to pay for them. One big problem the researchers found is the fact that there isn’t much to choose from yet.
According to the study, “36% of June mass payment recipients had no choice as to how they received these payments, while 43% could choose between two or three methods. Only 21% were offered a choice of four or more methods. In other words, 32 million mass payment recipients in the United States have no options as to how they collect these payments. “
With over 30 million consumers wanting this choice and not getting it, things are about to change.
As the Bulk Payments study concludes, “Not only would 52% of mass payment recipients pay an additional 1% fee to receive payments using their preferred methods, but 49% would be willing to pay up to 10% additional charge to do so. . “