Readers here had a few questions about our Bill Payment service on our point of sale software, going by the volume it clearly is very popular. I have been told that applications for it are now five times above what they were. Clearly, its availability has attracted much attention. Partly I think it's because the margins on our Bill Payment are very competitive.
The first point I need to stress is that our integrated solution is available for Bill Payments currently. Almost all of you can have it NOW in our system. That is something, no-one else can say in our marketplace.
Now let me run through a few points.
95% for reasons, I stated earlier pay in cash and for reasons I stated in my early post here, it is unlikely they can pay online. This is unlikely to change in the medium term (5 years).
The Bill Payment service is not the same as the BPAY service in the post office. It's better. You get more commission on almost all transactions and certainly on average. You get paid instantly. Most importantly there are more billers - BPAY has in the post about 2,000 to 3,000 billers while Bill Payments have over 40,000 billers. From a marketing perspective, there are many advantages in this larger pool of billers as our clients as in many areas will have a monopoly on many products as they are the selling long tail and niche products. Also in practice retailers today make most of their profits from items that few others have. Someone needs to pay an obscure bill and they need to pay in cash, where are they going to go? They cannot go to a post office as they do not handle it. Hopefully, they will come to my client, probably once a month.
The fee schedule, we suggest now does have is a payment of $5/month because this gets you currently the best commissions.
Currently, all advertising material is free. If you want more, there are some new posters coming out soon, which I do not have a pricing on, but it's purely up to you whether you want those posters. I would say wait until the Bill Payment service proves itself in your shop before deciding whether to get them. The most important are signs that shows to your customers that you have Bill Pay, and those signs are free.
Some people asked me what is the number of customers a shop are getting on our Bill Payment service. Looking at the figures, although it is a hard figure to qualify, I would say most shops fall into a range between 50 and 300 transactions, revenue you can expect would be between $25 and $150 a month plus whatever else they buy in your shop. However, many of you will do much more than that? How much would say Facebook charge you to get those numbers of people into your shop who may buy nothing?
Although the bills are paid the same day, your bank account is swept the next day, which gives you the time to get the money into the bank.
There are no lock in contracts. If say the VANA system starts, which is quite a while from now and only open to a small percentage of our clients and you decide, for any reason, you want to stop ours and go on their scheme, you can do so. You are not locked in.
Want to know more give us a call.