Payment holidays have provided a lifeline for many in the pandemic, but as the planned March end-date[i] fast approaches, consumers and organisations must both prepare for a difficult period of financial transition. Digital payments solutions expert, PayPoint, calls upon consumers and their service providers to mutually agree a flexible payment arrangement to ease the burden for all as financial support schemes draw to a close.  

The offer of payment holidays for mortgages, credit cards, buy-now-pay-later offers and other financial customers will come to an end on 31 March, hitting consumer pockets first. But this will quickly ripple across numerous markets including vital sectors such as housing, utilities and local authorities. Added to this, whilst the government’s 'furlough scheme’ officially comes to an end on 30 September, employer contributions will gradually increase from 1 July 2021, adding to the financial strain for businesses. To responsibly manage debt whilst efficiently collecting arrears, considered communication between the creditor and consumer will be vital for both parties.  

Danny Vant, Client Services Director, PayPoint, explains: “When monthly mortgage bills return for home-owners, many will immediately feel the pinch.  This is likely to have a knock-on effect, hitting other credit agreements and causing arrears to build. One size rarely fits all, so organisations must be able to offer their customers flexible payment terms, tailored to each individual.  The best way to settle arrears is to proactively work with customers and anticipate difficult financial periods waiting on the horizon.”  

PayByLink – available through PayPoint’s digital payment solution, MultiPay – allows businesses to collect due or arrears payments with care, engaging with customers sensitively and responsibly. Importantly, it provides customers with payment flexibility, putting them in control whilst improving cashflow for the business awaiting payment. This also minimises unnecessary payment chasing which is a key burden on call centres.  

Tailored email or text message reminders can be sent to customers about upcoming payments, as well as offering flexible payment terms for households struggling, or seeking agile means to control their finances.  It can also include a secure link to facilitate an immediate and frictionless digital payment. These user-friendly options offer peace of mind, increasing customer engagement and collections success. 

Concludes Danny Vant: “By working closely with customers, considering their financial challenges, and providing payment flexibility, businesses will not only help them navigate the coming months but are likely to benefit from a more efficient payment process. This will ultimately boost customer retention and loyalty at a time when businesses need it most.”  

PayByLink benefits for late payment collection:  

• Sends automated SMS customer reminders – either through PayByLink or using a business’s own CRM system  
• Enhances customer engagement  
• Offers a user-friendly payment option that keeps customers engaged  
• Increases collection of small arrears with ease  
• Easily integrates into your own CRM system  
• Increases efficiency with bulk payment options  
• Reduces spend on collections and write offs  
• Enhances cash flow management  
• Fully PCI compliant and can be used effectively in a call centre environment