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

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

3. 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

4. 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

5. 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

6. 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.

7. 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.

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

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

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

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

12. 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

13. 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?

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

15. 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.

16. 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.

17. 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

18. 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

19. 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

20. 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”

21. Thank You
Steven Estroff Vice President FirsTech Payment Solutions (770) Kelly Cole General Manager Consolidated Communications Public Service (217) (office)