This episode of Payments Nerds, TCH’s podcast series, focuses on the current state of bill pay and how functionality on the RTP network is enhancing the bill pay experience for end users (payers), billers, and financial institutions.

“Over the past couple of years we have actually seen a departure of customers, especially new customers and millennials, from bank-initiated bill pay to biller direct,” said Peter Davey, head of payments innovation at TCH. Today, “77 percent of all bills are actually paid through biller direct channels.”

Payers have gradually moved from traditional bank bill pay offerings, where payments often had to be scheduled a few days in advance, to biller direct payments since they can make payments on the same day. However, the biller direct model adds complexity for bill payers, most of whom have to pay between 5 to 10 bills a month, resulting in the payer having to remember 5 to 10 sets of log on credentials, as well as associated due dates for all of the bills.

“We believe that the new model of bill pay actually provides benefits on the biller and bill payer side, as well as to the financial institutions,” Davey added. 

With RTP network functionality, billers can send request for payments and customers can respond in real time. It gives the biller and customer greater flexibility when it comes to paying bills.

Listen to the full Payments Nerds podcast here.