By: Elisa Logan, Vice President Marketing
Smartphones and mobile payment platforms have already had a huge impact on how the world exchanges money. In just the first six days of the 2019 Lunar New Year, more than 823 million people in China used the WeChat platform to send and receive monetary gifts. Two mobile payment platforms, WeChat and Alipay, now have more than one billion daily active users each. And mobile payments are on target to become the world’s second most popular payment method (after debit cards) by 2022.
So what does this all mean for the insurance industry, where more than two-thirds of all property and accident claims were still paid with paper checks in 2018? For smart insurers, the answer is simple: Opportunity.
Mobile technology has just as much potential to transform the insurance claim payment world as any other industry. And insurers that figure out how to tap into that potential quickly will create an important new competitive advantage—both in terms of the experiences they offer policyholders and service providers and the efficiencies and cost savings they bring to their organizations.
To explore that opportunity, it’s helpful to look at a simple scenario. What if, when a claim has been approved for payment, policyholders simply receive an email or text message with a secure link. Clicking the link loads a secure mobile app where they can review the claim, approve the settlement, check the payment method they prefer (check, ACH, or push-to-debit, etc.), and receive their payment and remittance advice within minutes.
And what if, in the case of more complicated multi-party claims, each policyholder could use the same mobile app to review and approve all the multi-party payment details, approve and select the appropriate payees from a list, and send the payment the way the payee wants it with a few taps.
For policyholders and service providers, this kind of mobile experience feels much more in line with how they send and receive money in 2019, especially compared to waiting for paper checks to show up in the mail like their parents did in 1978. But this kind of mobile expedited payment scenario and the technology that supports it also provide insurance organizations with other important benefits. Mobile expedited payments eliminate check printing and postage costs. They dramatically simplify and streamline complex multi-party payment scenarios. They allow you to make payments a more seamless, integrated piece of your larger, mobile-enabled claims management process. And with the right planning, integration, and technology platform, mobile expedited payments can dramatically simplify claims reconciliation and compliance—by providing a single system of record where financial, claims, and payment delivery data are all stored and managed in a single location.
So the advantages are clear and compelling. But what will it actually take to make that final payment step as modern and mobile as the rest of your claims process? With VPay, the answer is, “Less than you think.” Because VPay allows you to tap into an intelligent, turnkey platform that streamlines and modernizes every aspect of your claims payment process—including mobile expedited payments. And the VPay platform is built to integrate seamlessly with your other claim management systems and processes.
Visit VPayusa.com/mobileclaimpayments to learn more about how you can take advantage of mobile expedited payments and the other benefits of the VPay Payment Platform. And begin the process of turning claim payments into your next big competitive advantage.
 Source: https://www.merchantsavvy.co.uk/mobile-payment-stats-trends/
 Source: Estimates and analysis based on industry knowledge and publicly sourced data.