Digital Uptake in Healthcare Payments
It’s no secret that the world is going increasingly digital. This may be most true when talking about the way consumers pay for the goods and services they acquire. For better or worse, many people go through their day to day lives without any cash on hand, relying instead on digital means to pay for what they need. This reliance on the speed and convenience of digital payments has an effect on healthcare, and so deserves our attention. Let’s take a closer look at digital payments.
What are digital payments?
As simple as this sounds, digital payments are, in fact, simply any payment that is made through digital means. Also referred to as electronic payment, in a digital payment both the payer and payee are using digital technology to send and receive money, respectively. There are a number of types of digital payment, including money transfer apps, mobile payment, credit cards, and ACH payments.
Money transfer apps, such as PayPal, Venmo, Google Wallet, Square Cash, and Zelle, among others, allow payers to efficiently send money using their mobile phone, typically with little or no fees associated with the transaction. Mobile payment utilizes a smartphone to make payments, often through close proximity with a receiver of some kind. An example of this would be Apple Pay. Credit cards are likely one of the oldest and most familiar forms of digital payment, and they remain popular because of the rewards programs offered, the security features they have to fight against fraud, and the ability for consumers to pay for goods overtime when needed. Finally, ACH payments, or Automated Clearing House payments, utilize funds pulled directly from your checking account without the need to write a check in order to add to the convenience of the transaction.
What factors are driving the uptake in digital payments?
Likely the most prominent factor in the United States for why digital payments are increasing in popularity is the generational shift that’s occurring. Younger generations are more comfortable with technology and its use in every aspect of their life. They want their consumer experiences to be convenient, and for these younger generations, that translates to doing things the digital way whenever possible. As these individuals are increasingly becoming the generation that most businesses are catering to, the shift to accepting digital payments is accelerating in all industries.
In other areas of the world, other factors are contributing to the digital uptake with regard to payments. In some countries, such as India, the governments are making changes relating to the currency that increases digital payment use, such as removing high-value notes from circulation. In other countries, like Egypt, digital payments are being declared as the only option for certain transactions under law, meaning that individuals have no choice but to adopt digital payment.
Why is this important?
The biggest reason why this is important for a medical practice is that obviously, you need to receive patient payments. Today’s patients, by and large, are operating in a more consumer-driven manner even with regard to their healthcare, and for that reason they want a convenient way to make their healthcare payments. This means that when you adopt digital payments in your practice, it’s better for your bottom line. There are, though, other benefits to be realized by using digital payments, including cost savings and security, both of which add to the appeal of this technology.
What should practices do to keep up?
Honestly, the answer to what practices must do to keep up in a digital world is simply to jump on board with digital payments. Now is the time to be sure that your practice is set up to accept digital payments seamlessly. Get the technology in place, make sure your patients are aware that you’re ready to accept digital payments and watch as your practice benefits.
The digital nature of our society is unlikely to change anytime soon, so rather than try to fight it, it’s best to embrace it. Digital payments are likely to help your practice increase your revenue stream because many patients, particularly those in younger generations, are much more likely to pay their bills on time when they can do so digitally. SolutionsHub is ready to help your practice with implementing digital payments through CueSquared Mobile Pay, a technological tool that allows you to bill and receive payments from your patients right on their mobile phones. Are you ready to learn more? Visit henryscheinsolutionshub.com or call 833-433-2482 for more information.