Frictionless Bill Pay Makes a Difference When Consumers Consider Skipping a Payment

As the inflationary vice tightens, more Americans are making partial bill payments or skipping some months altogether.

This was among the findings in “The One-Stop Bill Pay Playbook,” a PYMNTS and Mastercard collaboration based on survey findings from 2,140 U.S. consumers, which examined how cash-strapped Americans are starting to prioritize which bills get paid on time and which don’t.

Per that study, 27% of consumers surveyed “are more likely to remit partial payments for credit card bills than for other bills — an expected outcome given that credit cards provide the flexibility to carry a balance. An unexpected reality is that utilities come in second, at 18%.”

When consumers start to fall behind on essential services like utilities, it brings into question consumer financial health that is already suffering, pointing to a possibility of things getting worse before improving.

Of particular interest in the latest bill pay findings are breakdowns by demographic group and financial lifestyle that shed light on the trend of robbing Peter to pay Paul, as the saying goes.

Focusing on those who skipped at least one payment in the past 12 months, there were some surprises.

For example, nearly one-quarter (23.2%) of consumers earning over $100,000 annually skipped at least one bill payment in the past year.

In terms of generational breakdowns, millennials are the group most likely to have skipped a payment in the past year at 45.5%, as are 44.8% of those living paycheck to paycheck and struggling.

While consumers are less likely to skip payments on utilities and insurance, nonessentials like streaming entertainment don’t fare as well.

Per the study, “streaming subscription services fall at the other end of the spectrum, with just 17% of respondents saying when their budgets are stretched, they would pay these bills in full and 55% indicating they would be likely to cancel the services. Membership subscriptions and digital media subscriptions are similarly lower priority.”

The study also noted that an easy bill-pay experience can often decide whether a consumer skips, pays partial, or pays the full-due balance on a given bill.

“The significant role of smooth payments experiences stands out. PYMNTS’ data reveals that 14% of bill-payers who prioritize at least one bill over others identified the ease of making payments as a key factor in that decision-making process,” the study stated.

Get Your Copy: The One-Stop Bill Pay Playbook