3 Ways Insurance Companies Can Benefit from Cashless Payments

Apr 29, 2021 9:58:00 PM

Now more than ever, cashless payment methods have seen an increase in popularity. More and more countries are beginning to adopt cashless options that cater to a growing generation of digital natives who are used to the ease and convenience that come with living on the internet. The developments made in the digital age have made cash a thing of the past. Because of this, many businesses have opted to move to digital transactions. This payment method offers benefits that cash simply cannot keep up with. As it happens, one of the industries that has been most affected by the shift to a cashless state is insurance.

Insurance, like cashless payments, has also garnered popularity. A majority of the public has purchased insurance--whether health, travel, or life--as a means of protecting themselves against the ongoing global pandemic.  Because of today’s uncertain times, some companies even offer specialized packages that provide insurance for COVID-19. And while this is good for the industry, changes can still be made in terms of transitioning into the new age. Enter cashless payments. 

Cashless payments allow businesses both big and small to process and transact with customers at lightning speed and with relative ease. With cashless payments, customers are assured of fast, safe, and reliable transactions with insurance providers. Still not sold? Here are more reasons why insurance companies should switch to cashless transactions. 

Keep Client Records Updated Easily

Because cashless payments are done digitally, records automatically generate for each customer transaction. This allows a business to conduct market research on customer behavior, track payments for premiums, and even utilize contact information for marketing. What’s more, cashless transactions reflect in real time, thus minimizing the waiting period for policies to take effect and eliminating the back-and-forth that comes with needing to check paper records and receipts. This means that more insurance providers can service more people than ever. 

With regards to insurance policyholders, cashless payments allow them to access and make claims faster than ever. This eliminates having to carry physical money to a physical counter and fill out physical paperwork. Customers can get the care or service that they need in an instant and insurers can be assured that payments will be made promptly and accurately.

Ensure Client Safety and Reduce Cash Exposure

This benefit works both ways. Clients can finally avoid the hassle of having to pay for their policies in person. This eases the burden on the payer and eliminates the need to carry large amounts of money that they may misplace, or worse, expose them to malicious elements.

This also saves money, time and resources on the end of the insurer. Because cash is no longer part of the process, insurance companies save labor and effort by eliminating the need to make multiple trips to the bank. Insurance companies are also able to operate more efficiently thanks to the ease and organization digital records offer. 

Buying Online is Easier and More Convenient 

Let’s face it, the biggest advantage that cashless transactions offer is the ease and convenience that come with online shopping. Before, purchasing a policy meant leaving your home and meeting with somebody. It meant spending a few hours out of your day to negotiate, fill out paperwork, and fall in line. Now, customers looking for an insurance policy can simply log on to a company’s website and select their policy. 

For example, Paymaya’s website plugin allows customers to transact anytime, anywhere. This allows shoppers to pay for goods using credit cards, debit cards, or their e-wallet of choice, and integrates easily into most popular ecommerce platforms, including Shopify, WooCommerce, Cafe24, and Magento. Now, purchasing an insurance policy can be as easy as a few simple clicks. Customers can access their ideal policy and choose a payment option that is right for them all from the convenience of their smartphone. 

Because of cashless payments, customers don’t have to worry about making unnecessary trips to the bank or insurance company outlet, they don’t have to worry about paying for parking, or even having to leave their own homes to get the policies they need. Cashless payments have also saved customers who find buying insurance an intimidating process thanks to the absence of physical contact. Interested parties can simply take their time when it comes to selecting a policy that is right for them without the added pressure of a sales agent. Cashless payments have made buying insurance as easy as a Google search. 

Today’s digital age is ever-changing. And with the ongoing pandemic, a lot of people are looking for certainty during uncertain times. Cashless payments help consumers go about their business in a safe, efficient, and secure manner that just wasn’t possible before. For an insurance provider, going cashless means that the company is able to adapt to the shifting times. It’s a great way to let clients and potential clients know that the company is willing to cater to a newer market and to keep up with constantly changing demands.