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Payments – Then, Now, and in the Future
Speaker Name
Payments – Then, Now, and in the Future
• Ben Truehart is the Senior Vice President at PayLease, one of
the nation’s leading e-payment providers catering to the
property management industry. He has over 10 years of
experience in the payments and property management
industries.
• Ben is a frequent speaker and guest panelist at events catering
to property management professionals and has presented at
dozens of conferences over the past few years. He is also a
regular speaker for PayLease’s monthly webinar series that
addresses hot topics in the property management industry.
• Ben holds a degree in Advertising Management and Marketing
from Drake University along with a MBA from the University of
Iowa. Prior to joining PayLease, Ben worked for CDS Global, a
subsidiary of the Hearst Corp, where he was a Product &
Marketing Manager.
Speaker
Ben Truehart
Section One
•Overview
•More
•Still More
Section Two
•Overview
Section Three
•Overview
Section Four
•Overview
Agenda
Payments – Then, Now, and in the Future
• What it Means to You
• Preparing for the Future
• Conclusion
• Then & Now
Then & Now
Payments – Then, Now, and in the Future
Oh how far we’ve come…
• The beginning: Barter
• 9000 BC: Cattle
• 1200 BC: Cowrie Shells
• 500 BC: Metal Coins
• 806 AD: Chinese Paper Money
• 1661 AD: Bank Notes
• 1785 AD: The US Dollar
• 1950 AD: Diners Club Card
• 1958 AD: American Express and Bank Americard (VISA)
• 1997 AD: First payment made with a cell phone
• 2009 AD: Bitcoin introduced
Payments – Then, Now, and in the Future
How do we pay for stuff today?
Currency Credit
Payment Types
Payments – Then, Now, and in the Future
Currency Account-based Credit
The Internet: A Game-Changer
Though payment methods remain the same,
the internet has changed the payment types we select
Payments – Then, Now, and in the Future
Smart Phones
• The International Data Corporation predicts that by 2015 the Internet will be accessed more often through mobile devices than through PCs
• The number of smartphone users is currently estimated at 163.9 Million and is projected to be 209.7 Million by 2017
• Statista 2014
Payments – Then, Now, and in the Future
52%41%
3%2%
2%
Android
Apple
Blackberry
Windows
Other
Source: comScore 2014
Checks are Dying
16
9
0
2
4
6
8
10
12
14
16
18
2013 2014 2015 2016 2017 2018
Billions
of
Dollars
Forecast: Check Transactions - US
Source: Federal Reserve, Business Intelligence012
CAGR= -10.8%
Payments – Then, Now, and in the Future
Cash is Fading
$1,340
$1,300
$1,320
$1,340
$1,360
$1,380
$1,400
$1,420
$1,440
2013 2014 2015 2016 2017 2018
Billions
of
Dollars
Forecast: US Cash Transaction Volume
Source: Federal Reserve, Business Intelligence012
Payments – Then, Now, and in the Future
For the First Time, Consumers are Using Debit and Credit More Often than Cash
40%42%
7% 7%
4%
14%
34%
19%
27%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Cash Credit and Debit Check OnlineTransfer/Bill Pay
Other
US Number and Value of Consumer PaymentsBy instrument type share of total
Number of Payments
Value of Payments
Source: Federal Reserve, Business Intelligence, April 2014
Payments – Then, Now, and in the Future
Perc
enta
ge o
f Paym
ents
The Winners and Losers
Payments – Then, Now, and in the Future
It’s all about Channels
Payments – Then, Now, and in the Future
Retail store
Phone
Online
Peer-to-Peer
Video Killed the Radio Star
Payments – Then, Now, and in the Future
61%
56%
51%
47%
38%
34%31% 30%
26%23%
13%16%
22%24%
35%
39%42%
44% 45%
50%
0%
10%
20%
30%
40%
50%
60%
70%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Pe
rcen
t o
f B
ill P
aym
en
ts/M
on
th
Check vs. Online Payments
Check Payment
Online Payment
2011 Consumer Trends Survey,
Fiserv Inc., 2011
Online BankingBiller Direct Alternative
Channel: Consumer’s Choice
Online Bill Payment Channels
Payments – Then, Now, and in the Future
What Impacts our Channel Selection?
Biller Direct
• Control & Timing
• More Payment Types
Bank Pay
• Consolidation
• Financial Management
Payments – Then, Now, and in the Future
Biller DirectOnline BankingChecks
Trends – Biller Direct vs. Bank Bill Pay
Payments – Then, Now, and in the Future
15.9
18.8
27.2
31.4
41.0
44.8 45.7 46.648.0
53.4
11.7
14.415.3
17.9
26.328.2
30.0
32.6
36.4
40.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Millions
of
House
hold
s A
dopti
ng S
erv
ice
Biller Direct vs Online Banking
Biller Direct
Online Billing
2011 Consumer Trends Survey,
Fiserv Inc., 2011
Bill Payments in 2013
• 74% of households pay bills via biller direct or through online banking
• % of households paying bills with checksdrops another 8%
• Limited overlapbetween online bankers and biller-directloyalists
Payments – Then, Now, and in the Future
74%
62%
53%
48%
45%
36%
24%
22%
17%
16%
16%
11%
Online (biller or financial institution)
Online at biller site
Check
Auto-Debit (ACH)
With a debit or credit card
Online at a financial institutionwebsite
Both biller and financial institutionsite
In person retailer location
By calling biller
Using a mobile phone
In person at a check cashing,convenience or grocery store
Online through a non-bankingwebsite
Sixth Annual Billing Household Survey,
Fiserv Inc., 2013
What it Means to You
Payments – Then, Now, and in the Future
Annual Survey – Benchmarking
• Purpose: To serve as the property management industry’s first benchmark study regarding biller direct online payment adoption
• Methodology:• 2014: Year 3
• Survey and results tabulation completed by third party research firm (New Heights Research)
• Master list created; Sample of 585 management companies were surveyed
• Sample was segmented by portfolio type (HOA, SF and MF)and unit count (100-500, 501-1500, etc.)
Payments – Then, Now, and in the Future
72%
77%
83%
67%
69%
74%
67%
75%
79%80%
84%
91%
60%
65%
70%
75%
80%
85%
90%
95%
2012 2013 2014
Perc
enta
ge a
ccepti
ng o
nline p
aym
ents
HOA firms by size accepting online payments
Payments – Then, Now, and in the Future
Source: New Heights Research, 2014 Market Survey 012
Total HOA
1501-5000 units managed
501-1500 units managed
5000+ units managed
HOA E-Payment Adoption
Payments – Then, Now, and in the Future
Source: New Heights Research, 2014 Market Survey 012
5%
4%
8%
7%
5% 5%
10%
4%
16%
0
4%
1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
501-1500 Units 1501-5000 Units 5000+ Units
Change in Online Payments Status Among Core HOA 2013-2014
New penetration
Incremental
Full Switch
Reduced #
Total – 21%
Total – 17%
Total – 30%
Lot’s of Movement and Change…
Offline Payment Options Accepted
95%
48%
94%
12%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Money Order /Cashiers Check
ACH / Bank AutoDeduct
Personal Check CC Over the Phone Cash
Offline Payment Types Accepted
Payments – Then, Now, and in the Future
Source: New Heights Research, 2014 Market Survey 012
Online Payment Options Accepted
61%
67%
72%
37%
88%85%
92%89%
7%
13%
8%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All PMCs 500-1500 Units 1501-5000 Units 5000+ Units
Payment Types Accepted Online
Credit Card
ACH
PayPal
Payments – Then, Now, and in the Future
Source: New Heights Research, 2014 Market Survey 012
34%32%
41%
24%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
All PMCs 500-1500 Units 1501-5000Units
5000+ Units
Percent of Payments Made Online
61%67%
72%
37%
88% 85%92% 89%
7%13%
8%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All PMCs 500-1500 Units 1501-5000Units
5000+ Units
Payment Types Accepted Online
Credit Card
ACH
PayPal
One Key Driver of E-Pay Utilization
Payments – Then, Now, and in the Future
Source: New Heights Research, 2014 Market Survey 012
Resident Adoption by Portfolio Type
Payments – Then, Now, and in the Future
16.5%
11.3%
4.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2009 2010 2011 2012 2013 2014
Utilization by Segment – First 12 Months
Single Family
Multi-Family
HOA
Source: PayLease Admin012
Preparing for the Future
Payments – Then, Now, and in the Future
The Future
MAKE IT EASY
Payments – Then, Now, and in the Future
4 Recommendations
1. Optimize your Websites and Portals• Mobile Friendly (optimized or responsive)
• App w/ common tools (e.g. e-pay, maintenance requests, etc.)
2. Statement Enhancements• E-Statements
• Mobile billing
• QR codes / SSO (single sign-on)
3. Online Banking Integration • Work with your banking partner to connect with online banking platforms
(MasterCard RPPS, CheckFree, etc.)
4. Set a Goal for Coupon Book Independence!
Payments – Then, Now, and in the Future
Defining Your Management Company
This presentation was given at the 2014 CAMfireConference by TOPS Software. CAMfire is an educational gathering of Community Association Management Professionals and TOPS Software users.
To learn more about CAMfire, visit www.camfireconference.com.
For mope community association management information, subscribe to http://camblog.topssoft.com