Bill collections still uses many manual, paper-based, and inefficient processes. However, that is beginning to change as fintech digital innovations are transforming the collections space and making it easier for consumers to pay off debt quickly and seamlessly.  

To find out how, PaymentsJournal sat with Don Apgar, Director of Merchant Services Advisory Practice at Mercator Advisory Group, and Lance Carlson, Co-founder of HealPay.  

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From Antiquity to Modernity 

There is still “a lot of antiquated technology” in the bill collections space, noted Carlson. He added that a common practice in the industry until recently involved storing a spreadsheet with names and overdue account balances on USB drives, and one party would sell the stored information to another that would then collect the debts. This, of course, is a laborious, manual process rife with human error, often leading to mistakes and confusion. Overall, the collections process is often a frustrating one for both consumers and businesses trying to get the debt paid. 

“However, you are starting to see things modernizing,” said Carlson. “We’re starting to automate many of these manual processes.” 

HealPay, for example, offers a consumer-facing digital portal that enables users to set up one-time or recurring payments with merchants or collection firms without having to log in.  

Businesses and collection firms have access to a portal that integrates with leading receivables and claims management software, automates formerly manual processes, and uses data analytics to offer intelligent payment options for partial, full and minimum payments. 

A Better Consumer Experience Leads to More Paid Bills 

While such tech innovation makes things easier for businesses and creates a much better experience for consumers, does it lead to more debt being repaid? That was a question Apgar posed: “How does a friendlier approach to the consumer result in more collections?” 

Carlson began by acknowledging that a segment of the populace simply will not pay past-due bills and “you can’t force them to pay bills if they don’t want to,