Using Mobile Technology to Improve the Bill Payment Process Will You Pay Me Now? Utility Payment Conference

Today’s Discussion Billing and payment philosophies Consumer payments behaviors MOBILE as an emerging payment channel Customer Case study Q/A

An interesting observation The argument for optimizing…. “If it’s not broken…. leave it alone.” Many organizations do not have a consistent payment strategy Payment processes randomly evolve to include new technology and online payment platforms Untapped Payment Potential Address Margin Concerns Process Efficiency Goals Reduced DSO Improved Brand Awareness Enhanced Consumer Experience Eliminate fractured payment processes Match internal goals with consumer demand

Today’s Payment Channels Paper Lockbox Typically outsourced to bank or 3rd party provider Check and card remit options Walk-In Authorized Agent or Business Offices Primarily cash and check remit options Mobile Implications Potential increased credit card processing fees Opportunity to raise e-Payment and e-Bill adoption rates Integration of mobile bill payment with home banking capabilities; posting issues Auto Debit Typically outsourced to 3rd Party Provider ACH and card remit options Web/IVR Payments Home Banking Reconciliation through bank lockbox or by 3rd party provider ACH or check remit options Mobile

Positive Payment Behavior You need your customers to pay the bill... But what’s really important to your customer? Right Place Right Time Right Method

How Do I Select My Channel? The ability to pay any time plus using a variety of funding methods drives satisfaction and loyalty Shifts in consumer payment behavior is driven by financial issues Time sensitivity remains a big driver Source: Consumer Trends Survey, 2011, Fiserv, Inc.

Time to Pay…Seize The Moment! Payments Volume Differential Consumer Choice of Channels Trends show rising preference of e-payments Biller Direct and Home Banking preferences are tied 74% of consumers believe that payment channel options are important Source: 2011 Billing Household Survey, Fiserv, Inc.

Average Response Times 3.2 DAYS 40 SECONDS 30-42 DAYS Source: Northwestern University, 2011, Lifestyle Communication

Gen Y Behaviors Gen Y consumers expect an immediate, virtual customer experience Technology is their channel; mobility is a must

Rapid Pace of Technology Multi-Use Devices are gaining popularity Mobile Phones Tablets

Mobile Access Access to mobile technology continues to grow Gap between “Feature Phone” and “Smart Device” ownership continues to narrow

Why Mobile Now? 80% of mobile adoption will be Smart Phone by 2015 What is the most common activity when visiting a biller website by mobile phone? 30% of people with mobile phones have visited a Biller website 6MM users have made at least one mobile bill payment 74% of all cell phones are utilizing SMS Text Messaging Source: Javelin Research 2011

Rising Costs of Mobility Explosive Growth predicted for mobile payment and mobile banking As mobile payments grow, so does the use of plastic…. What does this mean to your costs?

How Would You Describe Your Mobile Device? Wouldn’t it be great to hear the customers say this about paying their bills?

CCPS Profile Division of Consolidated Communications Consolidated Public Services is a single, coordinated source for providing the communication backbone for county and state correctional institutions. Since 1984, Consolidated Communications Public Services (CCPS) has provided telecommunications solutions that give correctional institutions the best technology and dedicated support in the industry while maintaining inmate and family morale with reliable phone service.

Decision to Go Mobile Key Consideration: Objectives of program: New opportunity for our customers, we are always looking for ways to take a payment from a customer. Revenue generation Objectives of program: make it easier for everyone involved: user, customer service rep, IT, and make it efficient/easy for the customers.

Choosing a Mobile Partner/Program Existing payment vendor Easy to use solution Turn-key approach – minimal IT resources required SMS based; additional Smart Phone functionality

Gearing Up Decision in Q1 2013; initial implementation Q3 2012 Finalize Agreement and Requirements Development and Integration Testing Client Review and Approval Launch Week 1 Week 2-4 Week 5 Week 6 Decision in Q1 2013; initial implementation Q3 2012 6 week project plan Implementation support includes project management, training, and customized reporting

Adoption and Education 68% increase in customer adoption in last 3 months We hope for increased adoption through targeting specific customers Website Highlights Customer Service/Collection Calls IVR recording Bill Inserts Existing e-billing Registered Users Web Redesign

What does this mean for you? Are you ready to “Mobilize” So What… What does this mean for you? Are you ready to “Mobilize” Disposable income is shrinking Payment cycles are getting longer Consumers face difficult decisions when it comes time to pay the bills “Cross the Channel”

Thank You Steven Estroff Vice President FirsTech Payment Solutions (770) 431-0936 sestroff@firstechinc.com Kelly Cole General Manager Consolidated Communications Public Service (217) 258-2986 (office) kelly.cole@consolidated.com