Why you should prioritize digital payments
Digital payment processing doesn’t have to be a daunting task. Here are 4 reasons it should be at the top of your priority list.
Answering the why for going digital with payments
The value of digital claims payments is becoming increasingly clear as more businesses ditch paper. But with this change come questions. Why are digital payments better? What are the specific advantages? How do they work? Learn the many advantages and importance of adopting digital payments.
1. Having digital payment options matters to customers
More and more people and businesses are embracing a digital lifestyle. As a result, a wider range of payment options than paper checks and ACH payments is expected.
Numerous benefits come with offering ways to pay digitally. According to a 2023 report by Optum Financial, 58% of providers see faster payment collection and reduced account receivables days when using digital payments systems.
Better payment experience
Moving to digital claims payment processing improves payer relationships with their payees. In our recent report, 6 in 10 providers said they believe faster delivery of payments would improve their payment experience with payers.1
2. Digital payments deliver fast, predictable ROI
Claim payment digitization can have a clear, well-documented impact, starting with reduced payment lag time and increased efficiency and accuracy. Digital payments also offer immediate cost savings in printing, mailing and processing paper checks.
Faster payment processing can also reduce other claim-related costs. According to the latest CAQH index report, cost savings associated with electronic claim payment adoption for the medical and dental industries is $1.4 billion.2
Faster transactions
Digital payments can be delivered much more quickly than sending a check in the mail. Medical providers experienced an average time savings of 4 minutes per transaction when they used digital payments.2
3. Digital payments help reduce fraud
Digital payments significantly help reduce fraud by leveraging advanced security measures. In Q2 2024, there was a 30% year-over-year increase in global cyberattacks. That’s an average of 1,636 attacks per organization per week, highlighting the growing threat.3
Digital payment systems combat cyberattacks by using encryption, making it difficult for fraudsters to intercept or manipulate transactions. Real-time fraud detection capabilities can instantly flag suspicious activities, and detailed audit trails provide transparency and facilitate the investigation of fraudulent activities. Automated verification processes further reduce human errors, adding another layer of security against fraud.
Digital payments can help reduce payment fraud by keeping sensitive information protected.
More secure payments
When surveyed, 7 in 10 payers agreed electronic payment methods are more secure than other methods.1
4. Digital payment options drive provider satisfaction
There's no shortage of reasons to move to digital payments. With a digital solution you can see transaction history and have a single system of record for all payment types. The top paper-based claims pain point is costs related to billing errors and reimbursements.
Faster payment delivery
It is possible to send your payments more quickly through a trusted platform. When surveyed, 63% of providers said they would like faster delivery of payments.2
Switching to digital claim payments can lead to an affordable, self-contained digital transformation win that delivers results quickly.
Sources
- 2023 Report Optum Financial Health Care Payment Methods: Perspectives from Consumers, Providers and Payers. Unpublished, Internal Market Insights Report.
- CAQH. 2022 CAQH Index: A Decade of Progress. Accessed September 1, 2023.
- Informa. Check Point Research reports highest increase of global cyber attacks seen in last two years. July 22, 2024.
Payment solutions, including Optum Pay®, are made possible by Optum Financial, Inc. and its subsidiaries (collectively “Optum”) and their service providers. Banking services are provided by Optum Bank®, Member FDIC, and other financial institutions. Because we are continuously improving our products and services, Optum reserves the right to change specifications without prior notice. Patented technology protected by one or more patents. Additional patents pending.