According to the Mobile Payments Report from BusinessInsider.com, payments using mobile devices continue to increase at double-digit growth rates. Their latest US mobile forecast finds that volume will reach $75 billion during 2016. Volume is expected to increase significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
In addition, there is a significant gap in the age ranges of who will make payments with mobile devices. According to eMarketer.com, younger people are more prone to using mobile payments to pay their bill than are the older generations. In 2015, 17.5% of 25- to 34-year-olds used a mobile payment method vs. just 3.5% of those 65 and older. They predict that by 2017, 37.0% of the younger age group will have adopted the technology.
This growth in mobile payments from young people bodes well for the student loan collection industry. Younger people who have finished college and are starting their first jobs are comfortable with making payments through a mobile device. Offer mobile payments to them as a means of paying down their student debt. This gives them the ability to make payments from anywhere at any time. It also saves you the cost of processing paper checks.
Giving students the freedom to make loan payments via mobile devices allows for faster and more timely collections. As a consequence, it’s a winning scenario for both the collection agencies and the students.
To learn how BillingTree can help boost revenue cycles with mobile payment solutions, contact us today.