Category Archives: Alacriti Blog

The Importance of Digital Customer Service in Banking to Businesses

As customers become more tech-savvy and demanding, their higher expectations extend to when they go to work and represent their businesses. This has become especially true in recent years, as the pandemic created more pressure for banking transactions to be completed digitally. A seamless experience and convenience in banking is key to businesses of all sizes. And it starts right from the beginning. 42% of U.S. based businesses view onboarding experiences at fintech companies to be more efficient than those at their banks. 

Businesses are an ever-growing opportunity. A decade ago, 2 million businesses were formed per year. Before the pandemic, it was 3 million. Now, by the end of 2022, 5.4 million new businesses are expected to be formed. Neobanks and challenger banks are of course capitalizing on this market, making it vital for traditional financial institutions to compete with their digital capabilities. And these capabilities are significant. Small firms are avid users of digital channels. For instance, almost half (46%) of surveyed small business stakeholders use their mobile banking app daily. For surveyed larger firms, online self-service was the most important factor that business clients cited when weighing a bank’s digital offering. 

Alacriti’s partner, Glia, offers digital-first experiences, including Alacriti’s payment technology, for financial institutions to connect to their customers or members. We sat down with Jenn Markus, Director of Technology Partners at Glia to discuss how important digital customer service is in banking to businesses. 

1. According to Aite-Novarica Group, 5-10% of new online treasury product applications never get completed due to poor onboarding capabilities and experiences. With online customer service like co-browsing, imagine not missing any business because you can help continue to deliver the online experience, even when assistance is required. What other ways would you say financial institutions should leverage online customer service to increase revenue?

There are a number of different ways that online services can grow revenue: a recent Harris Poll showed that 40% of banking customers are willing to leave their primary financial services provider for one that provides a better digital experience. By providing them with that better digital experience, FIs can avoid losing customers through attrition and improve customer retention. Just a 5% increase in customer retention can improve profits by anywhere from 25-95%, according to Bain & Company. Making sure existing users don’t have any reasons to leave goes a long way in securing profits.

Additionally, digital tools can allow Customer Service Reps (CSRs) a greater insight into the needs of website users. With Glia’s Live Observation tool, a CSR could watch a user’s journey through the website, including seeing them struggle with a form, and proactively reaching out to them and offering assistance. 45% of consumers say they’re likely to go elsewhere if a business doesn’t provide a personalized experience, so the ability for CSRs to reach out proactively at the first moment of struggle can make all the difference for customer loyalty. 

2.  What are the benefits of online customer service for business banking? 

Online service really wins a lot of people over with its convenience: almost everyone (over 90% of the US according to Statista) can reach the internet with 24/7 access, and with features like AI-powered chatbots, you can truly use banking services digitally 24/7. They can do all their important banking whenever they want, wherever they need to, without all the hassle of visiting a physical branch. Being able to get in touch with you on their terms, when it’s most convenient for them, is a valuable selling point.

Digital Customer Service will also benefit businesses by providing the FI with more insights into their business customers’ finances. FIs can take advantage of a wealth of data and digital tools to better provide for their business customers, helping individual accounts with unique plans for long-term financial success. 

3. In a survey of 358 small businesses, 45% said they banked with Paypal, 55% said they could consider doing so; and 30% said they currently work with Square, and 43% said they would consider doing so. In your experience, how important is the digital customer experience in banking important to businesses? 

Digital Customer Service has become an increasingly crucial platform for maintaining loyalty. Users become frustrated with the digital experience when it doesn’t meet the needs of their business and can quickly erode their trust. They often expect the same kind of service experience they receive from tech giants or major retailers, and if you don’t deliver it then they may want to seek out someone else who can. It’s easier than ever in the digital age to switch FIs, so maintaining business’ loyalty with great digital experiences is paramount. If you can avoid giving someone any reason at all to leave, you should. 

4. Of businesses surveyed, 52% of surveyed businesses state a seamless experience across the bank is required for or very important to keeping their business; an additional 36% state it is important.” Is it safe to assume the same about businesses? What do you think businesses expect when it comes to online customer service from their institution?

It’s usually safe to assume that the same kinds of things that can cause friction for consumers will also negatively impact businesses. Most people may, in fact, have a higher standard for the banks they trust with their business than the ones they use for their personal finances. Financial institutions should definitely make sure they’re meeting their business clients’ needs as well as their personal account holders. 

Businesses will want to be able to easily monitor their accounts and finances from anywhere, ensuring they have ready access to them and can easily make changes in the event of an emergency. Businesses also want to be able to perform actions like paying bills and transferring money quickly, so they should be easy to find on your site and intuitive to carry out. They expect to be able to quickly get in touch with a specialized business CSR should they ever have any issues: over the phone, online, or however else they like to get in touch. They also will expect support staff to be knowledgeable and trustworthy, so they can feel comfortable trusting them with their business’ finances. At the end of the day, we are serving the people within the business, so providing a seamless, personalized experience makes a difference.

5. Considering nearly 3 out of 4 consumers are willing to go to a competitor, driven by the digital disconnect, what is the best strategy to personalize the digital customer service experience?

At Glia, we often talk about meeting account holders where they are and in their moment of need. By offering multiple avenues to connect online and via phone, you can provide a personalized experience, remove the digital disconnect, and streamline the experience. Whether utilizing online chat, SMS, video, voice, or phone, giving people a lot of different options for how they want to get in contact with you makes sure that you’re meeting them where they already are, which creates a personalized journey. 

It’s also important to ensure that these channels are interconnected, and can communicate with one another: nothing makes someone feel more ignored in a customer service interaction than when they have to repeat what they’ve already said! Make sure that your channels can communicate between one another, passing along context when transitioning the users to ensure that nobody needs to explain themselves all over again. It not only makes service feel more personal, but reduces frustration and makes them much more likely to want to keep coming back.


Alacriti and Glia have partnered to assist financial institutions in providing their members with best in class digital-first service. Glia’s Digital Member Service Platform combines all communications into one unified digital experience. With the partnership, members have access to Ella, Alacriti’s AI chatbot that’s fine tuned to answer bill pay questions and is fully integrated within Glia’s Digital Member Service platform. For more information about Digital Member Service powered by Alacriti and Glia, please please call us at (908) 791-2916 or email info@alacriti.com.

Faster Payments: The Benefits to Businesses

In today’s rapidly evolving financial landscape, businesses are constantly seeking innovative solutions to streamline their operations and improve customer experiences. One solution that has gained significant traction is faster payments. Faster payments, especially instant payments, revolutionize the way businesses send and receive money As businesses strive to stay competitive and meet the evolving expectations of their customers, understanding the benefits of faster payments is important. In this blog, we will explore the advantages that faster payments bring to businesses such as enhanced cash flow management, customer satisfaction, operational efficiency, and more. 

Understanding Faster Payments

Faster payments revolutionize the way businesses send and receive funds eliminating the need for lengthy processing times. Real-time payments are even better, allowing businesses to send and receive funds in real-time, which provides immediate access to liquidity and enables timely financial decisions.

Benefits for Businesses

  • Accelerated Cash Flow: Faster payments enable businesses to expedite their cash flow, minimizing the time between invoicing and receiving funds. According to recent studies, businesses that adopt faster payment solutions experience a significant reduction in payment cycle times, resulting in improved liquidity and better working capital management. Cebr projects real-time transactions will rise to 8.9 billion in 2026— providing a $2 billion net savings for consumers and businesses.
  • Higher Customer Satisfaction: In today’s era of instant gratification, customers expect quick and seamless payment experiences. Faster payments enable businesses to meet and exceed these expectations, leading to highercustomer satisfaction. According to the Federal Reserve Survey, nearly 80% of individuals are interested in leveraging faster payments to pay businesses, and 60% want a real-time view of their account balance and immediate posting of payments they initiate. Real-time payments are increasingly becoming expected by consumers. By meeting this demand, businesses can increase customer loyalty and repeat business.
  • Improved Cash Flow Forecasting: Accurate cash flow forecasting is critical for businesses to make informed decisions and plan for future growth. 72.9% of businesses in a PYMNTS survey said that improvement to their cash flow management was an important benefit of real-time payments. With faster payments, organizations gain real-time visibility into incoming funds, allowing for more accurate cash flow forecasting. This enhanced predictability enables businesses to optimize their working capital, invest in growth opportunities, and mitigate financial risks 
  • Increased Efficiency and Productivity: Faster payments eliminate manual tasks and streamline payment processes, allowing businesses to allocate resources more efficiently. By reducing the time and effort spent on manual reconciliation and administration, businesses can redirect their focus and resources toward core operations and strategic initiatives. This increased efficiency leads to improved productivity and overall business performance. By automating payment processes and reducing manual intervention, businesses can free up valuable employee time.

Benefits for Financial Institutions:

Faster payments provide financial institutions with a competitive advantage in the market. According to an article by Alacriti, Consumers Demand Faster Payments, businesses can leverage real-time payments to meet evolving customer expectations and drive innovation in the industry. With increased competition and commoditization of banking products and services, innovation and improved customer experience become essential for differentiation. By embracing real-time payments, financial institutions can meet consumer expectations for speed and convenience, offering immediate bill payments and instant credit, which helps customers avoid late payments and fees. This convenience can create new revenue opportunities as consumers are willing to pay for the privilege of receiving immediate payments. Real-time payment capabilities also attract and retain corporate banking clients, allowing FIs to enhance their treasury services and explore new streams of revenue.

Additionally, by leveraging APIs and partnering with fintech providers, FIs can expand their capabilities and embed payment services into existing products or services, turning payments into a tool for growth rather than a hurdle to overcome. The transparency offered by faster payments improves operational efficiency, provides visibility into fees, and enables FIs to offer cost-effective money movement options. With real-time payments, FIs have the leverage to meet consumer expectations for a wider variety of delivery options in terms of speed and cost. This allows them toto remain competitive, drive customer satisfaction, and position themselves as leaders in the rapidly changing landscape of financial services.

Future Trends and Opportunities:

  • Request-for-Pay (RfP): Request-for-Pay is a real-time payments channel that benefits businesses by simplifying transactions. It allows payees to initiate payment requests, which are received digitally by payers on their mobile devices. Payers can accept or reject the request, triggering a real-time transfer to the payee. This streamlined process eliminates the need for remembering account details and enables faster transactions. RfP also presents opportunities for businesses to improve conversion rates, receive immediate funds, and explore new revenue streams through partnerships. Overall, it empowers businesses to enhance payment experiences and increase operational efficiency.
  • FedNowSM Service: The Launch of the FedNow service in July is another step toward ubiquity for real-time payments.. With the FedNow Service, businesses can enjoy faster and more efficient payment processing, receiving instant payments without waiting periods. This improves cash flow management, enhances customer service, and attracts customers in industries where speed is critical. Additionally, FedNow includes real-time transaction monitoring and advanced fraud detection capabilities, providing businesses with increased security. 

An Opportunity for Businesses:

The shift towards faster payments presents a remarkable opportunity for businesses to transform their financial processes, establish a competitive edge, and exceed evolving customer expectations. As the payment landscape continues to evolve rapidly, it is crucial for businesses to stay informed and proactively adopt innovative solutions to unlock their full potential. By embracing faster payments, businesses can unlock new opportunities for growth and success in the digital age.

For more on business use cases for real-time payments, watch the webinar, Making the (Use) Case for Faster Payments, featuring The Clearing House and the U.S. Faster Payments Council. 


Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNowSM Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.

Maximizing Bill Payments with EBPP

There are quite a few benefits of offering EBPP for a biller versus just having customers mail checks or using online banking bill pay. Stuart Bain, Senior Vice President at Alacriti, was recently interviewed for Alacriti’s podcast where he discussed the benefits of EBPP, its creation, how it supports payments across channels, and the most used features. Here are some key takeaways from the interview. 

Electronic Bill Presentment and Payment (EBPP) offers increased convenience and efficiency for customers and billers

EBPP, also referred to as biller direct, is a service that enables customers to make bill payments directly to the biller through their website or phone. Bain explained that the key benefits of EBPP include providing customers with access to their current billing data, offering more payment options, the ability to create recurring payments, and same-day or real-time payment posting.

Bain stated, “Customers have access to their current billing data because typically they can pull it straight from the biller site, and they can see exactly what they owe at a given point in time.” He also emphasized the importance of offering multiple channels for customers to make payments, saying, “Customers can also use their debit or credit card (if the biller chooses to support them) to make payments rather than having to debit a bank account either via a check or an ACH.”

EBPP solutions have evolved over time to meet changing customer demands and demographics

Initially, EBPP solutions were more rudimentary compared to today’s offerings. Bain noted that they started with a single web channel for enrolled web one-time and recurring payments, basic call center functionality, and basic reporting. However, as customer demands and expectations increased, more channels and features were added to EBPP solutions, such as guest web, AutoPay, chatbots, and IVR.

Bain explained, “We do see a lot of variation, but it also depends on how you actually define most used. As an example, our reporting from our Orbipay EBPP solution shows that the channel that gets used the most by the customers is our guest Web channel.” He emphasized that it’s essential for billers to offer a range of channels to meet their customers’ needs and preferences.

Financial institutions should look for an EBPP solution that offers an omni-channel experience, real-time payments, and flexibility

An ideal EBPP solution should provide a true omni-channel experience, offering a range of direct channels such as customer websites, mobile options, and phone payment options. Additionally, supporting real-time or same-day payment posting is crucial for meeting customer needs. “Around two-thirds of consumers think that it’s very important to them that they can do instant payments. It can’t be something that’s going to take two or three days to apply the payment because it just doesn’t meet the consumer’s need for immediacy,” Bain explained. 

Bain highlighted the importance of a flexible EBPP solution, saying, “The important thing to understand is that it’s not one size fits all. And we play well in that area because rather than a one size fits solution, Alacriti has the ability to drive things through configuration and parameters. While we have a standard build, it can all be tweaked and configured to suit a specific biller. We can typically change things overnight. In addition, the entire system was designed around the concept of real-time (which is a key difference), with support planned for the RTP® network and the FedNowSM Service, while simultaneously being able to support batch-based processes. An example of this is the generation of ACH files to go to clearing.” 

Listen to the full podcast: Episode 11: EBPP

To view data on consumer bill payments, download our Consumer Bill Payments in 2022: Trends Report


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Orbipay EBPP offers convenient and flexible choices that include all the payment channels, payment methods, and payment options expected from a modern digital bill pay experience. For more information, please contact us at info@alacriti.com.

How Gen Z Pays Their Bills

Bill pay is an important part of attracting and retaining accountholders. Almost half of consumers have stated that online bill pay is the reason for choosing a primary financial service provider. Bill pay is quickly growing along with the number of Zoomers, an age group spanning from 11 to 26 years old, whose financial journey is also on the rise. In order for businesses to keep up with Gen Z’s billing and payment needs, it’s crucial to understand what they’re looking for in their billing and payment experience. As a Zoomer myself, I’ve been able to observe how my generation approaches bill payments and why certain methods are preferred over others. In this blog, we’ll explore how Gen Z prefers to pay their bills and their preferred methods of payment.

31% of Zoomers have said that they found the bill payment experience to be stressful— either always or most of the time. This is an opportunity to provide better options of how to pay and when to pay. To keep up with the desire for multiple billing and payment options, businesses need an EBPP system that offers a variety of payment methods e.g., debit, credit, Apple Pay/Google Pay, cash, or ACH, payment options e.g., one-time or recurring, and payment channels e.g., pay by text, intelligent assistants, or mobile. As a generation that values convenience and speed, Gen Z prefers to pay their bills using electronic payments such as debit cards and ACH transfers. As a Zoomer, I would attribute this preference to several factors.

Debit cards are easy to use and provide instant payment processing. Unlike credit cards, which can come with interest rates and fees, debit cards use funds that are currently available. This means that users can avoid accumulating debt and making interest payments. A lot of individuals in this generation are just starting their careers, newly coming out of college and starting new jobs. For that reason, they are extremely cautious about racking up debt or simply do not qualify for credit cards just yet. Hence, making debit cards the preferred card option.

The larger majority of Zoomers (myself included), tend to opt for ACH and debit card payments, with 33% using debit and 41% using ACH payments (see below graph). A big reason for that is the safety and convenience that come with these types of payments. ACH transfers are automatic and do not require any manual intervention. They also reflect how much you have in your account in real-time which helps with future financial planning. Another reason that Gen Z prefers ACH transfers is that they’re often free. Unlike other payment methods, such as credit cards, ACH transfers do not come with transaction fees. This is important considering this generation may not have a lot of disposable income. By using this method, they can save on transaction fees, allowing that money to be used for other expenses. 

Percentage of 2023 U.S. Bills Paid by Method by Generation

A significant part of these preferences can be attributed to the fact that Gen Z specifically is a digital-first generation. They are digital natives that want things to be done at a click of a button—and see no reason why banking should be less convenient than calling an Uber or ordering a pizza. Billing and payments experience expectations are no different. 

Unsurprisingly, when it comes to payment methods, smartphones are the first choice, with 80% of Zoomers logging in to their financial accounts using a smartphone at least once a week (see graph below). With the rise of mobile banking apps, paying bills has become easier than ever. Smartphones offer a seamless experience in which transactions can be completed with just a click of a button. It’s a device that they always have with them and with this payment method, it takes little to no time to complete the transaction. Another advantage of paying bills through smartphones is the ability to set up automatic payments. 34% of Zoomers said they were nervous about whether or not they’re able to remember to pay their bills. With automatic payments, they have the ability to pay bills automatically on a set schedule, eliminating the need to remember to make payments each month. 

Percentage of Consumers With a Financial Institution Relationship Who Log In to Their Financial Accounts Using a Smartphone at Least Once per Week

Zoomers want a modern payment experience that is quick, easy, and convenient. By understanding these preferences, businesses and financial institutions can provide a modern payment experience that meets their needs. In today’s digital first world, it’s important to have a digital bill payment solution that provides a payment experience that is quick, secure, and convenient. By doing so, businesses can attract and retain Gen Z customers and remain competitive in the marketplace. 

Read more about Zoomers in Zoomers: How Much Do They Value Real-Time Payments?


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Orbipay EBPP offers convenient and flexible choices that include all the payment channels, payment methods, and payment options expected from a modern digital bill pay experience. For more information, please contact us at info@alacriti.com.

What are Embedded Payments?

*Originally published on CUInsight.com

The banking industry talks a lot about the fintech revolution, and some financial institutions are going so far as calling themselves tech companies. However, just beyond the normal lip service given to this topic is the real revolution that is happening behind the scenes at most U.S.-based financial institutions—payments transformation. We hear a lot about digital transformation as an umbrella topic, but the conversation sometimes lacks substance. We don’t tend to hear too much about payments transformation, maybe because it’s not visible to the typical consumer, it’s not the fancy mobile app or the new slick UI on the website. Instead, it’s the embedded payment functionality, which makes the UI function slick.

So what are embedded payments anyway? 

Simply put, embedded payments are the money movement functionalities within a bank that have been exposed to upstream applications (e.g., the mobile app or bank website) that enables the user to transact. But that’s only the first step. The real value occurs once the bank layers in the ability for external third parties, like Fintech companies or new economy digital players (e.g., Uber, GrubHub, etc.) to take hold of those functions and embed them in their user experiences. For example, embedded payments allow individuals to connect and save payment methods for later use, at just one click of a button. From the user’s perspective, the payments are invisible, as they don’t have to think about it. The payment just happens as a part of their interaction. A recent study found that 47% of SMBs would be willing to pay the same amount or more for embedded finance solutions over solutions provided by traditional financial institutions.

From the financial institution POV, embedded payments are a true innovation enabler. When I talk to the market about potential use cases for real-time payments, I often find myself talking about the art of the possible. What could faster money movement enable, not so much focusing on the money movement itself, but what experience one could build upon the money movement functionality? It’s a key building block in re-thinking the entire product portfolio. Look at where you can extend beyond the banking products of the 20th century that were limited by analog-digital money movement functionality (e.g., batch-based or paper based products). Start to focus on what your customers truly want and need, products that offer advice, reassurances when warranted, and solutions that meet needs that go beyond just dollars in one account to dollars in another.

Benefits of Embedded Payments

Embedded payments offer numerous benefits for both users and businesses. For that reason, they are quickly becoming a norm in our personal lives. One of the biggest benefits from a user perspective is a seamless user experience. This eliminates complete reliance on going to physical bank branches to obtain financial services such as loans or credit. It also caters well to tech-savvy customers (Millennials and Gen Z) who demand speed and convenience. This also helps businesses understand consumers’ spending habits and needs. 

From the business side, embedded payments allow businesses to receive payments quicker compared to traditional invoicing. This access to alternative forms of funding and a streamlined buying process also leads to increased customer satisfaction and brand loyalty, which in turn also helps increase revenue. In a recent survey, organizations discussed their drivers for a faster rollout of embedded finance: 33% cite the need to improve the customer experience, 26% the demand for financial services, 22% part of their planned business model, and 17% to accelerate new revenue streams for growth. Only 2% said it was because a competitor was doing it.

What about real-life examples? 

  • Uber uses insights from payments data to create a support program for drivers without cash to buy fuel, helping struggling drivers to keep earning.
  • Apple pay enables individuals to make purchases with just a click of a button without having to reach for your wallet
  • Shopify offers integrated payment processing and lending services to their sub-merchants
  • Tesla offers an insurance program that allows customers to purchase coverage almost instantly, eliminating the insurance agent/broker from the purchase process. 

Embedded payments are the fuel that will make the digital transformation journey possible. The industry is expected to grow rapidly, the IDIC predicts that 74% of digital consumer payments globally will be conducted via platforms owned by non financial institutions by 2030. So what are you waiting for?

Want to learn more payments terms? Read the What Are Integrated Payments? blog.


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments, digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

A Quick Run-Down on Real-Time Payments and Liquidity Management

*Originally published on CUInsight.com

As credit unions move forward with real-time payment adoption, how to connect is the primary consideration. However, another major decision is whether or not to use a funding agent (or correspondent partner). Participating in real-time payments increases intra-day liquidity needs, as adequate cash must be immediately available to fund outbound payments. Credit unions need to balance the risk of underfunding payment accounts and the inefficiency produced by overfunding pre-funded accounts. 

A funding agent funds and manages positions in the RTP® network’s joint Federal Reserve bank account on behalf of its participating credit union. And while the Fed doesn’t require financial institutions to prefund any accounts, similar services for the FedNowSM Service are available (called correspondent partners). A correspondent partner can manage a credit union’s profile, cash, and settlement, and make payments. 

For instance, The Clearing House’s RTP network is 24/7/365 and uses a reconciliation window that goes from midnight to midnight. During that time, the prefunded requirements and balances are held separately in a joint account at The Federal Reserve Bank of New York, which needs to be managed and monitored at all times. The joint account is required regardless of a credit union’s home region for a federal reserve bank, meaning without a funding agent, there is a need for a separate joint account. 

A funding agent can hold the account on behalf of the credit union and actually move the money back and forth between the credit union’s account and the Federal Reserve Bank of New York’s account. This service can provide value to the credit union because if available funds get low during off hours, the credit union could run out of funds. A funding agent will pre-fund the account for the credit union, manage the limits, and react to the alerts.

Benefits of using a funding agent or correspondent partner:

  • 24/7/365 facilitation and management of real-time payments – figuring out how to manage the settlement and how it’s going to be monitored is very new for many credit unions
  • Simplifies processing – there is no need to have someone managing and monitoring the account every day
  • Simplifies the reconciliation process – typically, funding agents have consolidated access to all different settlement reports
  • Lower funding requirements – for the RTP network, there is typically a lower pre-funding requirement when a financial institution uses a funding agent

 

The decision to use a funding agent or correspondent partner is individual to each credit union and should be evaluated even before implementing Receive Only. To find out more about credit unions using funding agents to connect to real-time payments rails, watch the webinar, Real-Time Payments Funding Agents 101, featuring Corporate One and Alacriti.


Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNowSM Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.

Busting 5 Common EBPP Myths

Electronic bill presentment and payments (EBPP) is a wide-reaching discipline that encompasses everything from mobile-enabled bill payments to funding methods like debit cards, credit cards, and ACH. With so many moving parts, it’s easy for myths to develop about the basics of EBPP.

Here we’ll bust five common EBPP myths to help create a better understanding of how it all works.

Myth 1: Mobile devices are the go-to way to make electronic bill payments

There’s no denying that Americans love their smartphones, with almost 84% of the population owning one. And tablets aren’t far behind, with an ownership rate of 63%. But an analysis of bill payments made via Alacriti’s EBPP solution, Orbipay EBPP, shows that most users are still making their bill payments on desktop computers.

While mobile bill payments made a huge jump this last year (mobile payments represent 35% of Orbipay payments-up from 32% in 2021), desktops were still used for 63% of total transactions by the end of 2022. 

Myth 2: Electronic bill payments must be made on desktop computers and mobile devices

Despite the heavy use of desktop computers and mobile devices, they’re no longer the only way to make electronic bill payments. The explosion of chatbots powered by artificial intelligence is making voice payments easy and more accessible than ever. EBPP solutions can now empower users to make payments using smart home speakers like Amazon Alexa and Google Home. A simple spoken command like, “Alexa, pay my auto loan bill,” can trigger an on-demand, user-friendly payment experience that requires no screen time at all.

Myth 3: Mobile bill payments must be made in browsers or dedicated apps

Mobile bill payments no longer require visiting the biller’s website or downloading the biller’s app. EBPP solutions can now enable users to make payments directly through the text messaging platforms they use most. In addition, some EBPP solutions can accept bill payments by leveraging chatbot technology in commonly used apps like Facebook Messenger. Pay-by-Text and Facebook Messenger can deliver bill payments to interfaces that customers are using anyway, eliminating yet another barrier to making on-time bill payments.

Myth 4: People prefer using plastic for electronic bill payments

Considering that 83% of Americans own at least one credit card, it’s natural to assume that cards are used most frequently for electronic bill payments. Despite their popularity, data shows that bill payments made via bank accounts (ACH) are still king, with ACH funding 4.6 billion payments valued at 19.2 trillion during the 3rd quarter of 2022. This reflects an increase of 4.2-6% from the prior year. However, debit cards have a strong foothold as well, representing 16.37 billion in payments. 

Myth 5: Electronic bill payments are made most often on nights and weekends

Our 2022 analysis shows that users like to make their bill payments on weekdays, with Tuesday and Friday being the most popular days of all. One-Time payments (payments that did not use pre-configured AutoPay or Recurring schedules) were made most often on Fridays between 11:00 am and 12:00 pm ET.

The Bottom Line: There are common myths around EBPP that can prevent businesses from providing the most user-friendly experience to their customers. Get the facts by working with an EBPP solution provider that can help bust these myths and deliver the experience that your customers are looking for.

Read more on EBPP and how it’s benefited credit unions in our success stories.

*This is an update on an original post published December 2018


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments, digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

5 Common Cloud Security Myths

A common concern about the cloud is that it represents an additional security vulnerability. In reality, there are security risks that are actually mitigated by the cloud. Satisfaction of compliance requirements and sophisticated security from economies of scale can be achieved by your Cloud provider. Here are 5 common misconceptions about cloud security—debunked.

  1. On-premise configurations are more secure than the cloud

AWS cloud is by far more secure and cost-effective than on-premise. AWS provides enterprise encryption and security at a fraction of the price it would cost on-premise. With on-premise configuration, firewalls and encryption software need to be installed, run, and maintained. AWS cloud has encryption and security protocols built into the AWS infrastructure by default. AWS is responsible for the safety and security of clients’ data, so there is continuous monitoring of the infrastructure with built-in alerts to notify customers of suspicious activity. Secure direct connections via TLS encryption for all AWS services. And AWS is built for compliance e.g., PCI, HIPAA, SCO Federal Government.

  1. The Cloud suffers from more breaches

When the correct security policies for preventing attacks and detecting them are implemented, attacks are no more threatening to the cloud than any other piece of infrastructure. A recent cloud security survey showed that 31% of organizations experienced a security incident in the cloud, with misconfiguration being the leading cause. Hackers are going after servers that haven’t been set up correctly, whether they are in the cloud or off-premise. 

  1. Data is more secure when it is physically controlled

Various high profile security breaches have served to highlight that the physical location of the data matters less than the access and associated controls. AWS data centers have controls that make security possible: 

    • Secure design
    • Business continuity and disaster recovery
    • Physical access
    • Monitoring and logging
    • Surveillance and detection
    • Device management
    • Operational support systems
    • Infrastructure maintenance 
    • Governance and risk
  1. Cloud security tools and capabilities are not ready for my business needs

AWS provides more than 20 services and tools that are more cost-effective than 3rd party tools for on-premise for: 

    • Data protection
    • Identity and access management
    • Infrastructure protection
    • Threat detection and continuous monitoring
    • Compliance and data privacy
  1. Maintaining cloud security is far too difficult

That is where Alacriti Consulting partners with you to maintain policies, procedures, tools, and services so you can focus on your core competency.

Alacriti Consulting, an Advanced Consulting Partner of AWS; provides consulting, migration, management services, and security assessments for AWS environments. Whether you need assistance with data migration or to prepare for compliance audits, Alacriti is here to help. For more information please call (908) 791-2916 or email awsconsulting@alacriti.com.

What Are Integrated Payments?

When you hear the term ‘payments modernization,’ you are also most likely hearing the term ‘integrated payments.’ So what does integrated payments mean? Integrated payments refer to a concept in which payments processing is integrated into a business software package (such as an ERP or accounting package), as opposed to being an isolated product. The end result is a product where vital systems work together rather than a company having to stitch together several products from different vendors to fulfill an end-to-end business process.

It’s a win-win for the business and the solution providers. Simplifying the workflows and speeding up the payment process make the overall cost of ownership for the business lower and their lives simpler. Integrated payments systems can bring many advantages to businesses. Instead of having to manually enter and reconcile transaction data, an integrated ledger will show real-time transaction history. Cash flow is also accelerated as integrated credit card processing means payments are automatically posted. As a result, marketing and customer service are more informed—integrated payments provide more visibility for opportunities. With better reporting, getting the information required to do taxes is much simpler. Also, the end consumer experience is improved overall. They will have a more unified and cohesive payments experience, and will interact with customer service reps who are better able to serve them. 

As an example, in 2021 Sphere announced that they were launching a new iteration of their Health iPASS platform, which integrates patient intake and engagement software with their payment acceptance functionality and security. The combined system has an array of services, allowing patients to check-in, make payments, edit their insurance, etc. By integrating all of the systems, hospitals can accelerate payments and provide better service. Today, the Health iPASS platform remains successful and has resulted in multiple partnerships with leading healthcare providers including Azalea Health, DJO, and many others. 

Having integrated payments means open communication between all of your systems. The principle behind what makes integrated payments successful is a similar concept of the advantages of open APIs. Open APIs make payment modernization possible with legacy infrastructure, as new payments products can easily ‘talk’ to traditional core and online banking systems. For example, many financial institutions do not have the capability to have 24x7x365 availability, which is required by real-time payments. The advantages of real-time payments are vast to both the institution and their account holders. However, they can’t implement real-time payments without help. Alacriti, for example, can connect these financial institutions with The Clearing House RTP® network, making it possible for them to offer real-time payments even though their core processor does not have 24x7x365 availability. 

Learn more about payments terms in our Microservices and API Architecture blog series.


Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNowSM Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.

What is EBPP?

This blog frequently explores issues related to electronic bill presentment and payments (EBPP), from defining frequently used terminology to busting common myths. But what exactly do we mean by EBPP? Here’s a high-level overview of the major components, features, and functionality of an EBPP solution to help get you started.  

EBPP Defined

EBPP is a holistic approach to presenting electronic bills and accepting digital payments from consumers. An EBPP solution is integrated into a biller’s systems to facilitate seamless e-bill delivery and payments acceptance. It allows billers to deliver the following capabilities to customers:

  • Deliver e-bills in conjunction with or as a replacement for printed paper bills
  • Send account alerts and notifications to consumers through digital channels such as email and text messaging
  • Allow customers to fund digital bill payments using payment methods such as ACH and cards. Manual payments (point of sale card payments, personal checks, cash, etc.) can also be recorded in an EBPP solution
  • Accept payments from a variety of payment channels, including web-based channels, telephone-based channels, and other channels
  • Schedule payments using payment options including auto-pay, payment plans, one-time payments, etc.

Customer Support

In addition to client-facing features and functionality, an EBPP solution also allows billers’ internal staff to perform the following customer support activities:

  • Add new customers, edit existing customer records, and reset user passwords
  • View individual payment details as well as a top-down payments summary
  • Schedule bill payments
  • Communicate with customers via secure messaging

Online Reporting

Finally, an EBPP solution offers online reporting to give billers additional transparency into activities related to payments, customers, and settlement.

  • Generate comprehensive reports on payments processed, returns received, fee and settlement details, enrollment information, and more
  • Reports can be downloaded in multiple file formats

EBPP in Action

How does EBPP work in the real world? 

  • Greater Nevada Credit Union saw a 61% reduction in call volume.
  • Florida Credit Union was able to offer a better payments experience overall, including single sign-on, same-day posting, and displaying data to members in real-time. Total payment volume has also increased by over 20%. 
  • Alabama Credit Union saved 86 man-hours a week across their 50 agents. They also were able to reduce delinquency in first-time indirect loan payments

To read more on EBPP,  go to our blog, Busting 5 Common EBPP Myths?

*This is an update on an original post published March 2019


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. For more information, please contact us at info@alacriti.com.

The Rules and Regulations of Online Payments

Accepting online payments from your customers isn’t just about having a sleek and easy checkout process. Handling sensitive payment data means that businesses are subject to rules and regulations from various entities. In my role as Manager of Operations, I often help our clients navigate the assorted requirements that affect their online payments acceptance programs.

The following is a high-level overview of some key regulations that businesses should have on their radar when it comes to accepting electronic payments, including Nacha’s Operating Rules, the card networks’ best practices for card-not-present transactions, the Payment Card Industry Data Security Standard (PCI DSS), and an overview of FinCEN’s new CDD rule.

Nacha Operating Rules

Transactions made via the Automated Clearing House (ACH) are a popular way for customers to make insurance, utility, and mortgage payments. Businesses that accept ACH payments are subject to Nacha’s Operating Rules, which provide clear guidelines that govern all transactions over the network. Here is some high-level information regarding ACH return thresholds, which are based on both volume and dollar amounts:

  • There is a 15.0% threshold for all returns across the board
  • The threshold for returns for administrative reasons (no account, unable to locate, etc.) is set at 3.0%
  • There is a threshold of 0.5% for returns for unauthorized transactions

What happens if your business exceeds these thresholds? Nacha will initiate an inquiry into whether the Operating Rules have been violated, which may then determine any associated fines or penalties.

Alacriti works closely with its customers to monitor their returns and help them  lower these rates when they start approaching the thresholds. We recommend that all merchants who accept ACH payments perform a thorough review of Nacha’s Operating Rules and stay up to date on changes as they are published.

Card Networks

The major card networks – American Express, Discover, Mastercard, and Visa—have established guidelines for best practices when accepting card-not-present (CNP) payments. Here’s a brief overview of some key guidelines for accepting CNP payments from your customers.

  • Collect the card number, cardholder name (as it appears on the card), the expiration date of the card, and cardholder’s mailing address where they receive the card’s statement
  • Use tools such as Address Verification Service (AVS) and Card Verification Value (CVV) to further verify electronic transactions
  • Use internal or third-party tools to help identify suspicious or fraudulent transactions
  • Provide a record of the transaction via email that outlines order details, return policies, and customer support contact information

Failure to implement these best practices can lead to high levels of returns and chargebacks, resulting in fines and even expulsion from the card networks. We collaborate with our customers to ensure that they understand these best practices to help avoid excessive returns and chargebacks.

PCI DSS Compliance

The Payment Card Industry Data Security Standard (PCI DSS) applies to all organizations that store, process, or transmit cardholder data. It was developed to help keep customers and their sensitive payment data safe. While PCI DSS is overseen and managed by the Payment Card Industry Security Standards Council (PCI SSC), the council does NOT enforce PCI DSS. Instead, the card networks are responsible for making sure that the underlying merchants adhere to PCI DSS. Failure to do so could result in fines and possible cancellation of merchant accounts via the associated merchant’s acquiring bank.

PCI DSS compliance requirements will vary from business to business. For more information on PCI DSS, please click here.

Know Your Customer (KYC)

KYC is an inclusive term used for the processes that businesses undertake to ensure that their customers are who they say they are. KYC is not just one initiative or discipline—it often encompasses different rules and regulations from industry bodies, government agencies, and internal controls. Businesses of all sizes are required to have controls in place that verify the identities of their underlying customers. In addition, U.S. financial institutions are subject to further mandatory KYC regulations.

One of the KYC requirements that affect U.S. financial institutions was rolled out by The Financial Crimes Enforcement Network (FinCEN) in 2018. FinCEN’s Customer Due Diligence Requirements for Financial Institutions (CDD) rule was introduced to improve financial transparency. This is in addition to existing Bank Secrecy Act (BSA) rules regarding Anti-Money Laundering, plus OFAC compliance and the USA PATRIOT Act.

The CDD rule is an amendment to the Bank Secrecy Act (BSA) that helps prevent criminals from misusing companies to disguise illegal activity and money laundering. U.S. banks are affected by the CDD rule because it heightens the requirements for customers’ due diligence. It added a requirement for covered financial institutions to, “Identify and verify the identity of the natural persons (known as beneficial owners) of legal entity customers who own, control, and profit from companies when those companies open accounts.”

The Bottom Line: Accepting online payments from your customers requires adherence to a variety of rules and regulations. Partnering with a seasoned electronic bill presentment and payment (EBPP) provider can help guide you through this process and keep your online payments program running smoothly.

Speaking of mandatory changes, SWIFT’s mandatory adoption of the ISO 20022 standard for cross-border payments in November 2022 will impact financial institutions. Read more about ISO 20022 in ISO 20022: Why After Almost 2 Decades it’s More Important than Ever.

*This is an update on an original post published July 2018


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. For more information, please contact us at info@alacriti.com.

Why is AWS a Good Choice for a Cloud Provider?

You’ve made the decision to migrate to the cloud. But what vendor is best? There are certainly a number of cloud providers to choose from. Here are 8 reasons why Alacriti chose to work with AWS Cloud.

  1. Agility to meet volatile business cycles

The cloud allows your company to move quickly and be agile with so many changes. You pay for what you use and have the ability to add or even downgrade if your business needs change. 

  1. Reorganize IT cost structure moving CAPEX to OPEX 

CAPEX is a capital expense a business incurs to create a benefit in the future. OPEX is an operating expense required for the day-to-day functioning of a business. Buying hardware (CAPEX) upfront and having it depreciate over time is not the way of the future. Companies are finding ways to cut costs, and more predictability allows more flexibility and control.

  1. Agile application release cycles through DevOps

Through this process, developers can assign projects and bring them to completion more rapidly. Bringing products to market faster and within a timeline helps companies go to market faster, continue to automate, and save money. 

  1. Better operational control of the platform

AWS provides you visibility and control of your infrastructure with services like AWS System Manager. AWS System Manager provides a unified user interface so you can view operational data from multiple AWS services.  It also allows you to automate operational tasks across your AWS resources. 

  1. Elasticity to support high seasonality and on-demand consumption

AWS provides customers the ability to scale their platform as their needs decrease and grow during peak times. With a CAPEX model, you are forced to purchase more hardware and are stuck with that expenditure regardless of the amount of data storage needed.

  1. Cost reduction and improved cost predictability

AWS allows you to get out of that Capex model and reduce your overall expenditure. It also allows you to have controlled predictability with your IT spend, knowing how much you will spend monthly. 

  1. Facilitate access to enhanced capabilities (e.g.,  analysis of massive amounts of data)

AWS provides multiple services that help facilitate access to enhanced capabilities. For example, Amazon Macie is a fully managed data security and data privacy service that uses machine learning and pattern matching to discover and protect your sensitive data in AWS.

  1. Increased security and controls through automation

Automating security and controls is probably the biggest reason to make the move to the cloud. Not having to allocate more resources and time to something extremely important yet non-revenue generating can be a lifesaver. AWS provides more services and products than any cloud provider when it comes to security and controls for your cloud environment. 

Alacriti Consulting, an Advanced Consulting Partner of AWS; provides consulting, migration, management services, and security assessments for AWS environments. Whether you need assistance with data migration or to prepare for compliance audits, Alacriti is here to help. For more information please call (908) 791-2916 or email awsconsulting@alacriti.com.

Faster Payments Are Set to Revolutionize Modern Digital Payments

*Originally submitted by Mercator Advisory Group

Faster Payments Are Set to Revolutionize Modern Digital Payments

Faster payments and the user experience are the differentiators that will enable banks and credit unions to remain relevant and competitive.

We’ve seen this gradual shift during the past decade as modern payments have undergone a significant transformation based on consumer expectations. And in the past few years, in particular, the shift has accelerated as the pandemic changed the way many are paying for goods and services.

To put it simply, consumers want convenience — and that’s what’s driving this surge in digital payments. “Most people are looking for the iPhone experience,” said Jeff Bucher, Senior Product Manager at Alkami. “On your iPhone, you can click on the app and you can get things right away. You can order food immediately and have it delivered quickly.”

“Banking is important and using banking in the same manner that you use other apps and other interfaces is what people expect,” he added. “At this point, people want digital banking at their fingertips. They want to be able to have a streamlined interface, and they expect robust capabilities — to pay their bills online, pay their friends and family, and pay their loans online as well.”

The growth of faster payments is starting to be reflected in new use cases, according to Mark Majeske, SVP of Faster Payments at Alacriti, especially when looking at real-time payments, which has been available in the U.S. for five years.

“2023 is going to be the year of use cases,” said Majeske. “How do you drive usage of these systems, at the end of the day, adoption of these RTP [real-time payment] rails and FedNow—that’s coming up—really depends on us, with consumers and businesses using it. In the next couple of years, we’re going to see a huge emphasis on user expectations.

Key Differences Between the RTP® Network and the FedNowSM Service

The FedNow Service is poised to go live next year, and it shares considerable similarities with The Clearing House’s RTP network, which launched in the U.S. five years ago.

“Both the RTP network and the FedNow Service are instant, real-time payments, and they’re final,” said Bucher. “This is key to understand — that once you send the payment, it’s done. The only way to get the money back is to request that the money is sent back.”

“It’s a push-only method,” he said. “They’re not batches like ACH [Automated Clearing House] — both use ISO 20022 messaging to communicate, and this is key because ISO 20022 is a messaging method that’s being adopted around the world [and] is becoming more of a standard ever year.”

According to Bucher, both the RTP network and the FedNow Service are similar to wires, but they can replace wires in a lot of different ways because they’re faster, cheaper, and easier. “Some differences between the two are that you have to be on one network or the other,” he said. “They’re not ubiquitous, they don’t crossover, so you can’t send something on the FedNow Service and it will show up on the RTP network. You’re either on the RTP network or you’re on the FedNow Service.”

Another significant difference is that the maximum transaction limits are different. The RTP network has a maximum transaction limit of $1 million, and the FedNow Service $500,000.

Significant Use Cases for Faster Payments

One important use case around faster payments is account-to-account (A2A) money transfers. “We are partnering with Alacriti to offer A2A within our native environment,” said Bucher. “I think it’s something that makes a whole lot of sense. If you want to send money to an external account, say you’re at one credit union and you want to send it to a bank…you want to be able to send it immediately where you [can] press the button and it shows up in your account.”

“It’s a great use case, and it’s very needed and very desired among financial institutions and their users,” he added.

There are also many use cases within the business-to-business (B2B) space that are leveraging real-time payments—to pay for invoices, request payments, and even request payments back on invoices.

For business to personal transactions, a growing number of companies have gig workers who need to be paid daily, so it makes sense to use the FedNow Service and the RTP network for payroll. In addition, insurance payments can also be paid out quickly after a disaster to help people receive funds for housing, food, and clothing.

“Payroll’s another use case,” said Bucher. “There’s a lot of companies that have gig workers or temp workers and you need to pay them on a daily basis—and it makes a whole lot of sense to use real-time payments for that. It could be cheaper and easier than ACH in some instances.”

According to Majeske, real estate and automotive are other industries benefiting from RTP. “Some of the high-level transactions I’m starting to see is basically a car purchase. Let’s say you’re at the car dealership and you go to your mobile phone and sign up or apply for a loan,” he said. “The loan is turned around very quickly and at the end of the day, you’ve got the funds going to the dealership and you’re walking out with a set of keys.”

A Partnership That Works

In order for faster payments to work and for the consumer to take advantage of their offerings, they must be simple to use and fast. Ensuring that the front end of operations also has a user-friendly interface is crucial.

“Alkami takes care of all the back end,” said Bucher. “Alacriti has an engine that chooses the rail on the backside, whether the FedNow Service or RTP network, and we handle the interface to ensure they know we are executing their transactions and they can input what they need.”

“We picked Alacriti to partner with based on the fact that they were further along than a lot of the other potential partners that we talked to,” he added. “They really had an inside track on RTP and they were also in the pilot for the FedNow Service. Now they have strengths where we need them in payments, in particular, and they have a great track record of working with credit unions and banks.”

“It’s a win because at the end of the day, to be successful in faster payments you need the expertise on the payments side,” said Majeske. “Oftentimes, even more importantly, is that you [get] the user experience right, because without that, customers won’t easily use it or adopt it.”

3 Things to Know about Payments Modernization and Digital Banking

3 Things to Know about Payments Modernization and Digital Banking

Faster payments and the user experience are key differentiators in allowing credit unions to remain competitive. They present both an opportunity and a challenge to businesses, especially considering consumers’ post-pandemic expectations when receiving goods and services. In Alacriti’s recent Payments Podcast, we had the opportunity to speak with Jeff Bucher, Senior Product Manager at Alkami about payments modernization and how it fits into an overall great digital banking experience.

Differences Between the RTP Network and the FedNowSM Service

The FedNowSM Service (expected to go live mid-year 2023) shares similarities to The Clearing House RTP® network, with the common goal of allowing banks and consumers to quickly and easily transfer funds 24/7/365. But what makes them different?

RTP was rolled out about 5 years ago by The Clearing House; it was the first new payments vehicle out since ACH and has continued to grow since. This network allows consumers to electronically transfer funds between two different accounts seamlessly, even on weekends and after business hours. It can be used for payroll, bill payments, insurance, and even completion of retail transactions. Similar to the RTP network, the FedNow Service will also provide financial institutions with the ability to provide an instant payment service, allowing payments to be completed and accessed 24/7/365. Both of these rails use ISO 20022 messaging to communicate and send data along with the payments. 

One key difference between the two is that FedNow will open instant-payment services to even more financial institutions. They also differ in transaction limits. “We got a million dollar max transaction limit for RTP”, Bucher explained “FedNow is starting out once they go live, at least from what we’ve heard at this point, about a $500,000 max limit.” The two networks also differ when it comes to backing up the transactions. Financial institutions will keep the funds with the Fed and use FedLine. Whereas with RTP, funds are held by The Clearing House. 

Significant Use Cases 

One of the most beneficial use cases surrounding payments is account-to-account (A2A) money transfers. A2A payments are defined as the transfer of funds from one account to another one owned by the same individual or entity.

“This is what we are putting in place with Alacriti and we’re going to put it native into our online platform at Alkami” said Bucher, “Right now when you do an account-to-account transfer, if you go outside of the current financial institution you’re with, you have to do ACH and, and it’s gonna be a 1-2 business day experience where you have to wait for that payment to show up. With instant payments, it would show up immediately.” 

Additionally, there are also many real-time payments use cases within the business-to-business (B2B) space for payment requests, invoices, and payroll. The ability to move money quickly, know exactly when the transaction occurred, and minimize the risk of disruptions, can add important value to businesses. A growing number of companies have gig workers who need to be paid daily, so it makes sense to use the FedNow Service and the RTP network for payroll. “If you’re paying gig workers or temp workers, they want their payment that day and maybe even that hour so that they can move on and make sure that they have the money in their account. It’s also a big incentive for them to do business or to work for that company that is doing business in that area,” said Bucher. “Regular employees want to see their payroll as quickly as possible. And for a business to be able to send it out and be done with it and it’s final, that’s a great benefit.” 

Faster Payments are Expected Now

User expectations have changed considerably in the last few years, and have particularly accelerated with the pandemic. Individuals are focused on the ease of timing and convenience, expecting instant gratification.

Bucher highlighted this further in the ideology that he referred to as the “iPhone experience,” which he explained as, “you go onto your iPhone, you pull up an app, you want to be able to do something right away. Banking is part of that. So, a lot of people are looking to bank where they can have the digital experience at their fingertips. They expect a streamlined interface, robust capabilities, and want to pay their bills online.”

This expectation of having modernized payment solutions isn’t just expected by consumers, businesses are shifting to anticipate this as well. “Businesses are very focused on faster payments as well. They really want to understand how they can pay their employees, their customers, and even their vendors a lot more quickly and securely,” said Bucher. “They want to do it cheaper as well. Real-time payments are just expected now.”

Modernized bill pay options are crucial for financial institutions to cut costs and reduce operational overhead, which is what a lot of financial institutions are looking to do at this particular point. This is where having a good user experience also becomes critical. People want to move money easily and cheaply, but they also want safety, security, and accuracy within their payments as well. Similar to a seamless digital experience, faster payments are now expected by both consumers and by businesses.

Hear more about payments modernization and digital banking in our podcast with Jeff Bucher, Senior Product Manager at Alkami. 


Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNowSM Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.

Bill Payments: Helping Small Businesses Think Big

Small businesses are a driving force in the U.S. economy. They employ 61.7 million workers, which accounts for 46.4% of all US employees. This shows how heavily the small businesses drive the economy, however even with this, failure rates for small businesses can be high, and lack of cash flow is often a contributing factor. For small businesses that rely on a steady stream of income from bill payments, an electronic bill presentment and payment (EBPP) solution can be a powerful tool to help keep this revenue flowing. And, in the face of the “new normal” and increasing consumer demand for contactless everything, it can be a competitive differentiator.

Despite smaller staff and budgets, small businesses can benefit from big-minded solutions—including EBPP solutions—that serve some of the largest enterprises in the country. How can an EBPP solution help small businesses collect on-time payments and streamline operations? Here are five ways EBPP can help small businesses think big.

  1. Relieve the headache of dealing with bad checks.

Issuing paper bills and accepting payments via cash or check might seem like the least expensive options for collecting bill payments. But the reality is that recording cash payments can be time-consuming and prone to error. And, as stated earlier, there is an increasing demand for contactless billing and payments. Additionally, bounced checks can create collection time lags and other operational challenges that might be difficult for small businesses to control.

Accepting a wide variety of payment methods can help small businesses encourage on-time payments by giving customers the choices they’re looking for. While card payments do have fees associated with them, small businesses can work with their payments providers to establish pricing models that help make these expenses more predictable.

  1. Bring bill payments to mobile devices.

Fueled by increased consumer comfort, demand for contactless payments, better technology, and other factors, mobile payments adoption has been increasing exponentially in recent years and is predicted to grow from 26 billion in 2021 to 49 billion in 2023, representing a growth of 92%. The good news is mobile payment offerings aren’t just something that large organizations can offer. An EBPP solution can empower small businesses to accept bill payments on the mobile devices that customers use most, making these transactions quicker and more seamless than ever.

  1. Get electronic bill payments up and running quickly.

Small businesses might balk at the idea of a long and cumbersome implementation process for an EBPP solution. Forward-thinking EBPP providers can offer an out-of-the-box solution that’s designed specifically for small businesses. This means shorter implementation times that enable small businesses to begin accepting electronic bill payments in no time flat.

  1. Keep bill payments top-of-mind for small business customers

Reminding customers about account balances and upcoming due dates might not be possible without the help of technology. An EBPP solution can automate these processes by sending reminders via email and text messages on the business’s behalf. Doing so can prompt customers to make on-time payments and keep revenue arriving on time.

  1. Offer cutting-edge payments experiences.

Payments are evolving rapidly, and customers want to take advantage of the latest technology. Chatbots powered by artificial intelligence (AI) are facilitating text-based payments (via messaging apps) and voice payments (via intelligent personal assistants). By the end of 2022, 31% of small businesses had adopted AI tools due to the challenges they faced with limited staff, time, and budgets. Fortunately, EBPP solutions can offer small businesses the latest technology of today and help them quickly adapt to the emerging trends of tomorrow to remain relevant.

The Bottom Line: Easy, flexible, and forward-thinking bill payment experiences aren’t just for large enterprises. Small businesses can also take advantage of these benefits by partnering with an EBPP provider built to serve the needs of today and position them for success in the future.

Learn how businesses can use real-time payments to access cash faster and increase employee satisfaction in Real-time Payments: How to Monetize and Stay Competitive.

*This is an update on an original post published August 2018


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Ella is an AI-powered chatbot that facilitates seamless, personalized, and context-aware interactions between you and your customers through messaging apps, intelligent personal assistants, and directly on your website. For more information, please contact us at info@alacriti.com.

Full Coverage EBPP for Auto Insurance

Auto insurance premiums are among the most predictable bill payments in consumers’ lives. All but one state (New Hampshire) requires car owners to have auto insurance policies that help protect drivers, citizens, cars, and property from the damaging effects of auto accidents. Missed auto insurance payments can have serious consequences that go beyond losing the ability to drive the uninsured vehicle. Law enforcement can write tickets, issue fines, and even suspend car owners’ driver’s licenses. Undoing the damage caused by lapsed car insurance can be a headache, costing both time and money.

Given the disruptive repercussions of lapsed auto insurance, it’s important to make the bill payment process as user-friendly as possible for policyholders. A forward-thinking electronic bill presentment and payment (EBPP) solution empowers auto insurers to deliver a seamless experience that can help avoid the negative consequences of missed payments. Here are three ways EBPP can facilitate a more user-friendly bill payment experience for auto insurance policyholders.

  1. Automate auto insurance payments

Allowing policyholders to automate their bill payments can help ensure that they keep their accounts in good standing. Thirty-nine percent, with continuous growth, of individuals prefer using automatic payments as opposed to manually paying on the day of. With EBPP solutions, Policyholders can sign up for e-bills, enroll in AutoPay, manage funding sources, and take comfort in knowing that their auto insurance premiums will be paid in full and on time.

  1. Offer discounts for full premium payments

Today, 5 out of 10 of the largest insurance companies offer a pay-in-full discount. Making a full payment on an annual car insurance premium can help eliminate worry for both policyholders and auto insurers for a full 12 months. Auto insurers might consider offering incentives to encourage full premium payments through flat rate or percentage-based discounts. At this time, many opt for a 6-14% discount. Auto insurers can further facilitate one-time payments by offering policyholders a quick and easy experience where they simply visit a website, key in identifying account information, and make their full premium payment without logging with a User ID and Password.

  1. Mobilize car insurance payments

Paying auto insurance premiums no longer means sending in checks or logging in via desktop computers. EBPP solutions can accept auto insurance payments through optimized mobile websites and innovative channels like text messaging (Pay by Text) and messaging apps (Facebook Messenger). Also, some EBPP solutions even support bill payments through intelligent personal assistants like Amazon Alexa and Google Assistant. This allows policyholders to make voice payments via smart speakers using simple spoken commands resulting in a convenient and personalized payment experience. 

The Bottom Line: Auto insurance payments are simply too important to miss. An EBPP solution can streamline auto insurance payments by automating monthly transactions, supporting discount pricing for full premium payments, and delivering a convenient bill payment experience via innovative channels that policyholders use most.

Should you offer Pay by Text? Read 3 Reasons Why You Need to Offer Pay by Text—Now

*This is an update on an original post published March 2019


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Pay by Text is just one of several Orbipay EBPP features available to help you accelerate receivables. For more information, please contact us at info@alacriti.com

What Are Digital Disbursements?

The relationships that consumers have with retailers and service providers are increasingly digital, from how they communicate to how customers pay these businesses. But funds don’t strictly flow in one direction from consumers to businesses. There are times when businesses must issue payouts to their customers for reasons including rebates, refunds, account overpayments, and claims payouts.

The B2C payout process is largely built around issuing paper checks to recipients. But, forward-thinking companies are reevaluating this workflow in light of digital solutions that streamline so many other aspects of their operations—and the global pandemic is only increasing the need for accelerated digitalization. If customers can make payments on their mobile devices, for example, why can’t they receive digital payouts directly to their bank or credit union accounts or debit cards? Do businesses need to continue investing time and money in issuing paper checks when so many transactions are now digital? Isn’t there a better way?

The overall value of digital disbursements as a user-friendly alternative to paper checks for delivering B2C payouts and consumer demand for contactless and speedier payments is driving increased adoption. And research indicates that faster payments are something consumers are willing to pay a premium for. Thirty-three percent (roughly 52 million individuals) of consumers have expressed that they’re willing to pay an additional fee for instant access to payouts. 

Here are four things to know about digital disbursements:

  1. Digital disbursements use existing payment “rails” to deliver faster payouts.

Digital disbursements can replace paper checks by delivering funds through payment rails that consumers already use. For example, one of the most popular alternatives to paper checks is delivering funds via the ACH network. Customers simply provide their account information and their financial institution’s routing number to sign up for ACH disbursements. Other options such as PayPal, Zelle®, and push-to-card (Mastercard SendTM and Visa Direct) are becoming more widely offered and adopted as well.

  1. Faster payouts can reduce your business’s dependence on paper checks.

How many checks does your business issue to customers on a monthly basis? If it’s a high number, you’re probably spending significant time and money managing the process. Bank of America estimates that the costs of writing a paper check can vary anywhere from $4 to $20, depending on the nature of the business and the transaction. When thinking about the these costs, not only include the physical components of paper checks—the printing, fulfillment, and postage—but also the employee hours spent managing the check issuing process.Digital disbursements can help your business move away from the onerous process of issuing paper checks and replace it with a more efficient digital workflow. 

  1. Customers get their money faster.

When a customer is owed money, they want it in their accounts as soon as possible. This is especially true in circumstances like insurance claims payouts where the need might be urgent. A 2022 Disbursements Satisfaction Report shared that 67% of consumers would be encouraged to keep doing business with senders who offered instant disbursements. As mentioned earlier, customer satisfaction is crucial when thinking about your business’s long term success. With that being said, 58% of claimants with missed expectations noted it was because a payment took longer than they thought it should. Regardless of the situation, faster money means a better customer experience. Digital disbursements can reduce the lag time associated with paper checks and deliver B2C payouts faster than ever before.  

  1. There are experts that can help.

The thought of switching from paper checks to digital disbursements might seem overwhelming in the face of other priorities on your list. This transition can have deep impacts on existing technology, workflows, and security/compliance considerations. But time is of the essence in keeping up with the changing needs, demands, and expectations of your customers. Leveraging solutions developed by established providers that know the ins and outs of disbursement services can get your business up and running quickly, delivering the best possible experience to your customers in the fastest time possible.

The Bottom Line: Digital disbursements are poised to displace paper checks as the go-to for customer payouts. Invest in technology that streamlines the transition for your business while delivering the best possible experience to your customers. 

Digital disbursements are but one of many payment conveniences that businesses can offer. Read 3 Reasons Why You Need to Offer Pay by Text—Now

*This is an update on an original post published April 2021


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences.  To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

Payment Trends During the 2022 Holiday Season

The holiday season is already here, and there is much speculation about how this year’s events will affect the traditional economic impact of this time of year. Here are the payment trends we expect for: 

Retail:

You’ve probably noticed that retail stores have been advertising their Black Friday sales way before Black Friday. The growing trend of early shopping has continued year over year, however this year specifically consumers are especially feeling the pressure of inflation and product availability. In fact, retail sales alone are expected to rise between 6% and 8% over 2021 to between $942.6 billion and $960.4 billion.  

During the last few years, we saw an extraordinary growth in digital sales as it became the new norm for consumers during the pandemic. However, this holiday season, it’s expected that many consumers will shift back to in person shopping and traditional shopping experiences. Interestingly enough, 46% of consumers are starting their holiday shopping sooner than normal this year.

E-commerce:

Predictably, you can expect consumers to be making more payments online vs. in person for what they need. Last year, online sales grew by 8.6%. Whereas this holiday season will beat that number with an increase between 10% and 12% to between $262.8 billion and $267.6 billion. 

Some of the optimism around e-commerce for the holiday season can be attributed to rising prices pushing e-commerce retailers to offer more discount codes in order to attract budget conscious shoppers. In fact, 70% of shoppers are considering online payment plans and financing options as a result of inflation. 

Personalized Omnichannel Experience

Customers are expecting more personalized, omnichannel experiences. Businesses are also more prepared, improving or investing more in services like curbside pickup and expedited delivery. Companies can offer more personalized service by offering tailored offers and messaging. The opportunity to do more is clear, only 33% of consumers believe that companies do a good job of creating relevant experiences for them. (e.g., failing to recognize recent purchasers as existing customers or sending irrelevant offers). 

With the talk of recession and inflation being so prevalent during this holiday season, shopping for value will be a major trend. Meaning that consumers will be looking for retailers that are offering discounts, as well as seamless payment options including digital wallets, financing, and payment plans.  

Fraud

Every year, criminals take advantage of the increase in payment activity during the holiday season, and this year will be no different. This year, online shoppers are a bigger mark. Only 32% of U.S. shoppers plan to shop in-person for Black Friday, which will result in a 17% increase in 2022 online Black Friday shopping from 2021. Consumers can protect themselves by not clicking links in emails, opening attachments from retailers (which may be fraudulent and contain malware), avoiding pop-ups that contain spyware, and steering clear of e-skimmers. E-skimmers can install code on retail websites to gather data when consumers check out, and that can be avoided by using third-party payments providers such as PayPal, Venmo, or Amazon. Financial institutions can help their customers avoid fraud by using robust data analytics to better profile their customers or members’ payment habits, so fraud is easier to discern.

Popularity of Installment Payments

As mentioned previously, Buy Now Pay Later programs will become more popular this holiday season—the projected number of users is expected to hit 59.3 billion in 2022. It’s a polarizing offering as critics believe these programs encourage people who are already in financial difficulties to take on more debt. However, the data shows that the income demographic most likely to use BNPL is $50,000-$74,999. Whatever the stance, it’s clear that this feature is becoming more important to consumers. In fact, a survey from Affirm confirmed that 56% of consumers were looking to use BNPL to fund their holiday shopping. 

Vehicle Purchases

Between the months of November and December, dealership site traffic increases by 25%. Event’s like Black Friday and Year-End Sales, which are meant to get rid of older inventory, encourage shoppers to take advantage of this time of year. However, expectations have lowered for 2022 due to the impact of COVID on supply chains and the Ukraine War. Cox Automotive forecasters lowered their expectations for 2022 U.S. auto sales to 13.7 million new cars and trucks, down 9% from 15 million in 2021. For context, that’s down almost 20% from 17.1 million pre-COVID in 2019. Whether the volume is high or not as projected, with holiday spending on cars, financial institutions have the opportunity to provide a great experience beyond a competitive interest rate. Loan payers should have the option to pay their loans how they want to pay, whether that’s Apple Pay, ACH, or Debit and know immediately when their payment is posted. Financial institutions should have a modern EBPP solution that offers real-time integration with any core and online banking systems, making payments easy and fast. 

The holidays are a great time to show appreciation to accountholders. Skip-a-payment is a helpful option that financial institutions and billers can offer during the holidays. Read more in Skip-a-Pay for the Holidays.


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Skip-a-pay is just one of several Orbipay EBPP features available to help you provide a great payment experience. For more information, please contact us at info@alacriti.com.