In a world where consumers expect instant, seamless transactions, the collections industry is stuck in the past. Traditional collections methods, phone calls, mailed invoices, and outdated IVR systems are slow, inefficient, and often lead to frustration on both sides. Businesses across industries, from healthcare to financial services, are seeing rising delinquency rates and declining recovery success, making it clear that the old ways aren’t working. The answer? A digital-first approach that prioritizes speed, convenience, and automation, including Digital First Payments.
Why Traditional Collections Are Failing
Businesses with accounts receivable (AR) challenges whether in healthcare, utilities, call centers, or membership organizations are facing increasing difficulty recovering payments. The numbers tell the story:
- 85% of consumers prefer digital payment methods over phone or mailed checks (McKinsey & Company).
- A significant portion of people choose to ignore collection calls, with over 40% requesting that debt collectors stop contacting them (CFPB).
- Text messages have a 95% open rate, compared to just 20% for emails (MMA).
With consumers avoiding phone calls and discarding paper bills, businesses relying on legacy collections methods are leaving millions of dollars on the table. It’s time for a new strategy—one that meets consumers where they are and makes paying past-due balances effortless.
The Power of Conversational Commerce in Collections
Authvia’s patented TXT2PAY® technology enables businesses to collect payments instantly via text, email, or QR code no apps, logins, or phone calls required. By integrating secure, compliant, and automated payment workflows, companies can dramatically improve recovery rates while reducing administrative overhead.
How It Works
- Automated Outreach: Customers receive a text or email reminder with a secure payment link.
- One-Tap Payment Approval: No login required just a simple confirmation code to complete the transaction.
- Instant Payment Processing: Funds are deposited securely and immediately, improving cash flow.
The result? 40-60% higher collection success rates in industries like healthcare, utilities, and call center billing.
Shifting the Narrative: From Collections to Customer Experience
The word “collections” has long been associated with aggressive tactics and unpleasant interactions. But what if collections weren’t a battle, but a better experience for both businesses and customers?
A digital first approach transforms collections into a frictionless process that builds trust, not tension. When customers receive a friendly, secure payment request via text, rather than a disruptive phone call they’re more likely to pay faster and in full. In fact, digital payment options increase on-time payments by 33% (PYMNTS.com).
For businesses, this shift means:
- Faster cash flow – Reduce AR aging and increase financial stability.
- Lower operational costs – Eliminate time-consuming agent calls and manual processes.
- Higher customer retention – A positive payment experience keeps customers engaged and reduces churn.
Industries Leading the Charge
While collections is a challenge across industries, some sectors are seeing major gains by adopting digital-first payments:
- Healthcare: Medical bill recovery is simplified when patients can approve payments via text rather than dealing with confusing portals or mailed statements.
- Membership Organizations: Unions, gyms, and nonprofits can replace payroll deductions or paper invoicing with seamless text-based dues collection.
- Utilities & Telecom: Late payment reminders via text lead to higher on-time payments and reduced service disruptions.
- Call Centers & BPOs: By eliminating manual payment collection over the phone, agent handling time is reduced by 40%, freeing up resources for higher-value interactions.
The Bottom Line: The Future of Collections Is Digital
The businesses that win in collections are the ones that embrace speed, automation, and customer convenience. Legacy payment methods are costing companies millions in lost revenue, while digital first collections strategies are delivering record recovery rates.
Authvia’s TXT2PAY® makes it easy to modernize collections, increase roll rates, and accelerate time to cash, all while providing a compliant, secure, and customer-friendly payment experience.The collections industry is evolving. The only question is: Will your business evolve with it? Contact Us today to learn how Authvia can help your collection evolution.
