Consumers expect variety, flexibility, speed and convenience from their payment experiences, and these expectations are increasingly applying to healthcare.
A recent consumer survey from Banked found that consumers are likely to change the payment method they use depending on the situation: For example, half of U.S. consumers say they will use multiple payment methods at checkout if they are available in 2023, up from 43% the previous year.
Similarly, 79% of consumers say they use two to five different payment methods each month, a significant increase from 57% in 2022. Modern options such as digital wallets like Apple Pay, Google Wallet and PayPal are becoming increasingly popular due to their ease of use and strong security, with 60% of respondents reporting that they used a digital wallet in the past month.
When it comes to online payment methods, debit cards (67%) are the most preferred, followed by PayPal (53%), credit cards (51.4%), Cash App (31.6%), digital wallets (20.4%), Venmo (16.4%) and bank transfers (10%).
In fact, when it comes to consumer – and patient – preferences for payment options, security and speed are paramount.
Learning from other industries
If other consumer-facing industries, such as retail, are responding to consumer preferences for modern, flexible payment options, shouldn’t the healthcare industry do the same?
Below are three examples of consumer-friendly (and business-friendly) payment options that can be applied to healthcare.
- Self checkout at grocery store: Self-checkout is sometimes a controversial topic and can provoke strong emotions depending on personal preferences. Some people prefer to check out and pay quickly at a kiosk, while others opt to stand in a traditional line even if it means a longer wait. One thing we know is that one size doesn’t fit all in this case, and shoppers prefer options to have a choice. By implementing multiple options for patients, healthcare providers can cater to different preferences. For example, allowing patients to complete payments (such as copayments) on their own device before they arrive, at a self-service kiosk in the waiting room, or by speaking to a receptionist can provide the convenience they’re accustomed to.
- Restaurant QR CodeOne pandemic-era trend that has endured is allowing restaurant diners to pay by scanning a QR code with their smartphone camera. This process puts control of the payment process in the diners’ hands, avoiding the traditional multi-step waiter-driven payment experience. QR code payments also have customer loyalty program benefits, such as capturing customer contact information to send promotional information at a later time. Providers can benefit by including QR code payments on their bills, allowing patients to pay instantly without having to remember usernames and passwords. Additionally, QR codes can be used in waiting rooms to direct patients to download and sign up for the provider’s patient portal, facilitating digital communication between patients and providers.
- Financing and payment plan options: Many items, from airline tickets to sporting goods to clothing, are now offered to consumers on payment plans with financing or installment options. Then again, shouldn’t health care follow suit?
For patients, the benefits of payment plans are clear: medical expenses are rarely planned, so payment flexibility allows patients to pay in full with minimal disruption to other everyday expenses in their daily lives.
For providers, financing can help increase revenue and service flow by allowing patients who pay out-of-pocket for elective services or who have high-deductible insurance plans to schedule procedures with confidence and understand and plan for the financial implications.
There are a variety of installment payment options on the market, each with their own benefits and considerations. Providers should carefully consider whether to invest in a comprehensive funding solution with multiple lenders or work with an existing payment partner to implement a rapid recurring payment product using tokens. When determining which option is right for their organization, providers should consider their patient relationships, the types of procedures and care they provide, and how they can incorporate patient financing tools into their existing patient experience.
The payments landscape is rapidly changing due to changing consumer preferences, emphasizing transparency, speed, convenience and flexibility. To keep up with these payment trends, providers must consider lessons learned from other industries and apply them to healthcare.
Photo: Sorbet, Getty Images
Johnathan (John) Welch is Sphere’s Chief Product Officer, leading the product organization and driving the roadmap for Sphere’s payments and healthcare focused product suite. A native of London, UK, John is an internationally-minded payments expert with over 15 years of experience with some of the world’s largest payment providers and banks, including leadership roles at Wells Fargo, JPMorgan Chase, WorldPay and MasterCard.
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