For decades, collections have been a battle of persistence. Call centers, mailed notices, and email reminders have been the standard tools in accounts receivable, but consumers are changing, and so must collections strategies. Businesses that still rely on outdated communication and payment methods risk slower recovery rates, increased operational costs, and frustrated customers.
The future of collections isn’t just digital, it’s direct, automated, and customer centric. And it starts with text-based payments.
Why Traditional Collection Methods Are Failing
Traditional collections are riddled with inefficiencies:
- Ignored Calls & Emails: Over 60% of consumers ignore collections calls entirely (ACA International). Meanwhile, email engagement rates hover around 20%, not enough to drive timely payments.
- Slow, Manual Processes: Every additional step in the payment process logging into a portal, finding an account number, or calling an agent creates friction and delays.
- High Operational Costs: Transferring calls, handling disputes, and managing lengthy follow-ups strain both financial and human resources.
These outdated approaches not only result in slower payments but also erode consumer trust and satisfaction.
Text-Based Payments: The Collections Game-Changer
The answer isn’t more calls or more emails—it’s reaching consumers where they already engage: text messaging.
- 95% Open Rates: Text messages have near-instant visibility, compared to email’s 20% engagement (MobileSquared).
- Instant Payment Options: Customers can receive a payment request and complete the transaction in seconds, no logins, no waiting.
- Frictionless Experience: A simple, direct payment request via text reduces the barriers to completing a payment, leading to higher recovery rates.
Proven Results: Text Payments in Action
Industries that rely on collections, from healthcare to utilities to membership-based organizations, have seen massive improvements in receivables with text-based payments.
- 40-60% Higher Payment Success Rates: Businesses using text-based reminders and payment links have seen substantial increases in collection rates.
- Faster Cash Flow: Customers pay an average of 50% faster when offered text-based payment options.
- Reduced Operational Costs: Automating collections with text payments eliminates unnecessary call handling, saving agents valuable time.
How Authvia is Transforming Collections
Authvia’s patented TXT2PAY® solution eliminates friction in the collections process by combining compliance, security, and automation.
- Automated Payment Requests: Send secure payment links via text, email, or QR code to prompt immediate action.
- Seamless Customer Experience: No apps, logins, or complicated portals, just a simple reply-to-pay experience.
- Compliant & Secure Transactions: Fully PCI compliant, reducing fraud risk and protecting customer data.
- Omnichannel Integration: Extend beyond text with email and digital invoices, ensuring maximum engagement.
A Smarter Approach to Collections
Businesses that modernize their collections strategy with text based payments don’t just recover more debt, they improve customer relationships and reduce operational burdens.
- Higher Recovery Rates: Customers respond faster and more positively to text-based payment requests.
- Lower Collection Costs: Fewer manual interventions mean reduced overhead and increased efficiency.
- Better Customer Experience: Respecting consumer preferences leads to higher engagement and satisfaction.
The Future of Collections Starts Today
Collections are no longer about chasing consumers down, it’s about making payments as seamless and convenient as possible. Text-based payments aren’t just the next step, they are the new standard.
Authvia is leading the way, helping businesses get paid faster, reduce costs, and modernize collections for the digital age.
Want to revolutionize your collections strategy? Let’s talk.
