Bill Pay Automation: New Automated Solutions have Banks Learning from Retailers

Question:

We recently became aware of bill pay kiosks at various retail locations in our market, in particular cell phone stores and convenience stores. We are curious about the business model for such an application, how successful these deployments have been, and if there is an opportunity for a small community bank to leverage this new technology.

Answer:

There are two major business models for bill pay kiosks: direct bill pay and aggregate bill pay. Direct bill pay allows customers to pay their bills in person at their service provider's retail location. The cell phone operator you describe is a good example, in that they most likely accept only their bill and not those of their competitors or other types of billers. In addition to cell phone companies, cable operators, utilities, and other service industry retailers have deployed this solution. Their customers avoid long lines when paying their bill in-person. It also frees retail staff from a mundane task and allows them to deliver other value added services in the store--including selling more products and services.

Vendor:

Source Technologies