InvoiceCloud Releases Annual State of Online Payments Report

The survey data found forgotten passwords cause issues, mobile is the most preferred channel, due dates determine bill priority, and more

InvoiceCloud, an EngageSmart (NYSE: ESMT) solution for online bill payment services, released its annual State of Online Payments report in conjunction with Regina Corso Consulting, offering key insights into customer payment preferences and behaviors. This is the fourth year InvoiceCloud has released this report to help enterprise businesses within the financial services, tax, utilities, and insurance sectors keep ahead of important payment preferences and trends by using the survey data to improve customer satisfaction and drive their organization’s bottom line.

The 2023 survey revealed several key takeaways, including:

• The growth of self-service adoption has become relatively stagnant, with 30% of 2023 respondents enrolled in paperless billing for all bills compared to 29% in 2022, and 17% of 2023 respondents enrolled in AutoPay for all their bills compared to 15% in 2022.
• While survey respondents preferred mobile payments overall, fewer respondents are paying healthcare and personal loan bills via digital channels. In 2023, 35% of respondents paid a healthcare bill online compared to 42% in 2022.
• Personal loan bill payments saw a similar decrease with 34% of respondents paying online in 2023 compared to 42% in 2022.
• Forgetting username and password is the top issue with digital payments, with 23% of respondents citing this as their biggest challenge when paying bills online.
• Nearly three in four respondents (73%) prefer insurance claim payments be deposited directly into their bank account.

“The InvoiceCloud team believes that payments—as the most frequent and sensitive customer touchpoint—provide a unique opportunity for businesses to build a trusting, positive relationship with their customers,” said EngageSmart President, Enterprise Solutions Kevin O’Brien. “We are always finetuning our solution to better serve our customers and end-users, and the State of Online Payments report is just one way we keep our fingers on the pulse of the digital payments landscape and ensure our solution satisfies the convenient, varied, and intuitive payment preferences of today.”

This survey, conducted online between October 4th and 10th, 2023, collected responses from 2,001 US adults who are broadly representative of the US population based on age, gender, region, household income, and education according to US Census data and who have paid at least one bill online in the past 12 months.

To download the full report, click here.

About InvoiceCloud:

InvoiceCloud, an EngageSmart solution, is a leading provider of online bill payment services. Founded in 2009, the company has grown to be one of the leading disruptors in the cloud-based electronic bill presentment and payment (EBPP) space, helping institutions put customer experience first. By switching to InvoiceCloud, clients can improve customer engagement, loyalty, and efficiency while reducing churn and missed payments in the process. To learn more, visit www.InvoiceCloud.com.

About EngageSmart:

EngageSmart is a leading provider of vertically tailored customer engagement software and integrated payments solutions. At EngageSmart, our mission is to simplify customer and client engagement to allow our customers to focus resources on initiatives that improve their businesses and better serve their communities. EngageSmart offers single instance, multi-tenant, true Software-as-a-Service (“SaaS”) vertical solutions, including SimplePractice, InvoiceCloud, and DonorDrive, that are designed to simplify our customers’ engagement with their clients by driving digital adoption and self-service. As of September 30, 2023, EngageSmart serves 116,200 customers in the SMB Solutions segment and 3,400 customers in the Enterprise Solutions segment across several core verticals: Health & Wellness, Government, Utilities, Financial Services, and Giving. For more information, visit www.engagesmart.com and follow us on LinkedIn.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “could,” “should,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the first quarter and full year 2023 and thereafter, and other statements that are not historical facts. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, but not limited to, the following: our inability to sustain our rapid growth; failure to manage our infrastructure to support our future growth; our risk management efforts not being effective to prevent fraudulent activities; inability to attract new customers or convert trial customers into paying customers; inability to introduce new features or services successfully or to enhance our solutions; declines in customer renewals or failure to convince customers to broaden their use of solutions; inability to achieve or sustain profitability; failure to adapt and respond effectively to rapidly changing technology, evolving industry standards and regulations and changing business needs, requirements or preferences; real or perceived errors, failures or bugs in our solutions; intense competition; lack of success in establishing, growing or maintaining strategic partnerships; fluctuations in quarterly operating results; future acquisitions and investments diverting management’s attention and difficulties associated with integrating such acquired businesses; general economic conditions (including inflation and rising interest rates), both domestically and internationally, as well as economic conditions affecting industries in which our customers operate; the war in Ukraine; concentration of revenue in our InvoiceCloud and SimplePractice solutions; COVID-19 pandemic and its impact on our employees, customers, partners, clients and other key stakeholders; legal and regulatory risks; and technology and intellectual property-related risks, among others.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, and our subsequent Quarterly Reports on Form 10-Q, as updated by our future filings with the Securities and Exchange Commission (“SEC”). Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law.

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