REPAY Blog

Digital Payments, Real Results: How Modern Tech Helps Lenders Reduce Loan Delinquencies and Improve Customer Experience

Written by Kristen Hoyman | Sep 29, 2025 5:22:10 PM

Borrowers have changed. Has your payment strategy?

In today’s lending landscape, borrowers expect payment experiences that are fast, intuitive and mobile-friendly. But many lenders are still relying on legacy systems, like paper checks, ACH-only setups and phone-only support that create delays, frustrate customers and fuel delinquencies.

It’s time to rethink payments as more than just a back-office function. In our new whitepaper, REPAY explores how digital-first payment solutions are helping lenders reduce roll rates, increase on-time payments and deliver the kind of borrower experience that builds long-term loyalty.

Here’s a preview of what’s inside: 

Outdated Payments Are Driving Up Delinquencies

Legacy payment methods can quietly eat away at loan performance and operational efficiency. Manual tracking, failed ACH returns and long processing windows all contribute to:

  • Higher delinquency roll rates
  • Increased call center volume
  • Missed payments and charge-offs
  • Poor borrower satisfaction

According to recent data, the average delinquency rate on personal loans is 3.56%, but for borrowers with subprime credit scores, that number jumps to 16.62%.

That means any improvement in payment timing—especially for non-prime borrowers—directly impacts collections outcomes and cost-to-collect.

Why Realtime Payments Make a Real Difference

One of the most impactful shifts lenders can make? Offering realtime debit card payments alongside traditional ACH.

Unlike ACH transfers, debit transactions are authorized and posted instantly. There’s no wait for settlement and no risk of return due to insufficient funds. That alone can lead to:

  • 1-2 point drops in delinquency roll rates
  • Approximately $900 saved per 10,000 payments processed
  • More borrowers paying on time, even when it’s last minute

Borrowers Want Options 

Your borrowers live in a digital world. They expect to manage their finances with the same ease they order dinner or check in for a flight. That means flexibility is non-negotiable.

Our platform gives lenders the ability to accept payments through:

  • Web portals
  • Mobile devices
  • Text-to-pay
  • IVR phone systems
  • Digital wallets (Apple Pay®, Google Pay™, PayPal™)

52% of borrowers now prefer debit over ACH, and even older generations are moving toward digital self-service.

Modern Tech with Real ROI

Upgrading your digital payment solutions for lenders doesn’t mean rewriting your tech stack. Our config-over-code approach allows for:

  • API plug-ins that integrate in hours, not weeks
  • Full omni-channel access without heavy development lifts
  • System integration with your LOS, LMS or CRM
  • Same-day dashboards to flag failed payments for risk

Whether you’re handling personal loans, auto lending or installment financing, REPAY makes it easy to modernize payments without introducing complexity.

Compliance, Security and Support Built In

We know compliance isn’t optional. It’s foundational. REPAY is built to help you meet evolving regulatory demands and protect sensitive financial data with:

  • PCI Level 1 certification
  • End-to-end tokenization
  • Fraud detection and realtime alerts
  • U.S.-based, 24/7 support
  • Dedicated client success managers

Whitepaper: How Modern Lenders Are Reimagining Loan Payments

Our latest resource breaks down everything you need to know about transforming your payment strategy, from borrower behavior trends to implementation best practices.

When you download the full whitepaper, you’ll learn how top lenders are:

  • Reducing loan delinquencies and charge-offs
  • Improving cash flow predictability
  • Offering realtime payments without ACH risk
  • Engaging borrowers through their preferred channels
  • Supporting compliance with minimal internal overhead

Ready to Reduce Loan Delinquencies?

Modern borrowers expect more. And with the right payment strategy, lenders can deliver while protecting revenue, reducing risk and scaling with ease. 

Download the whitepaper today!