Delinquency rates are climbing, and so is the pressure on collections teams to recover payments faster and more efficiently. However, improving cure rates has to go beyond the traditional solution of increasing outreach. Reducing friction in the payment process is one of the most powerful tools for collections firms.
According to a recent survey, “4.5% of household debt was delinquent in Q3 2025,” and some of the biggest culprits are credit card debt, student loans and auto loans. That delinquency rate has increased throughout 2025, putting pressure on Accounts Receivable Management teams.
Modern consumers expect the same convenience when resolving debt as they do when shopping or banking. If your payment experience is outdated, delayed or limited to office hours, you may be creating barriers that keep delinquent accounts from becoming current.
The solution is deploying the right digital collections payment tools that are secure, fast, compliant and easy for consumers to use.
A cure rate refers to the percentage of delinquent accounts that become current again. Improving it means collecting more and collecting smarter.
With auto loans and credit card delinquencies hitting multi-year highs in 2025, collections teams are facing more volume, tighter margins and higher consumer expectations. Offering a smooth payment experience can be the difference between recovery and write-off.
Today’s consumers demand digital-first options. If paying a past-due bill requires logging into a portal, waiting on hold or dealing with inflexible schedules, you’re more likely to lose them. Cure rates drop when the path to payment is inconvenient.
Flexible, always-available digital collections payments help remove these barriers. Tools like text-to-pay, debit card acceptance and realtime posting meet consumers where they are: on their phones and on their own time.
To improve cure rates, a payment portal is just the starting point for ARM teams. As we approach 2026, they need a full suite of tools that support fast, frictionless and compliant transactions across channels.
Here are some of the most impactful payment tools for Accounts Receivable Management workflows:
This provides borrowers with a secure, one-click payment experience delivered by text or email. Consumers receive a personalized link that takes them straight to a payment screen, no login or credentials required.
Self-service tools like text-to-pay and interactive voice response (IVR) allow consumers to make payments without needing a live agent.
Accepting debit cards speeds up payments and improves reliability. Compared to ACH, debit transactions result in fewer failed payments and post instantly.
Realtime posting ensures that once a payment is made, it’s instantly reflected in your system. No delays, no errors, no repeated calls. That can have a big impact on your debt recovery rate.
Traditional ACH payments can carry a 15% failure rate in collections environments, often due to outdated bank details or insufficient funds, so going digital can dramatically improve results.
But every extra step in the payment process is an opportunity for drop-off. Asking a consumer to download an app, wait for a live agent or re-enter account information creates hesitation, and in collections, hesitation often leads to non-payment.
Digital collections payment tools are designed to reduce that friction:
These tools meet the consumer in the moment they’re ready to pay, whether it’s after a reminder call, a text or simply when they have the funds.
Digital tools are great for consumers, and they also help your ARM business run smarter.
Here’s what you gain by using collections payment tools like those from REPAY:
These benefits lead directly to better cure rates and a more scalable recovery operation.
Not sure if your current process supports modern cure-rate goals? Use this five-question audit to find out:
If you answered “no” to any of these, it may be time to rethink your payment infrastructure.
Now is the perfect time to learn more about REPAY’s Payment Acceptance solutions for collections firms.
Cure rates won’t improve with persistence alone. They improve when it’s fast and simple for consumers to resolve their debts and when your team isn’t burdened by manual tasks or outdated systems.
REPAY helps collections firms modernize payment acceptance through compliant, realtime tools that reduce servicing effort and increase recovery success. From debit acceptance to pay-by-link and 24/7 self-service, our platform meets consumers where they are so you can help more accounts get current.
Now’s the time to invest in Accounts Receivable Management tools that pay off. Contact our team to get started!
What is a cure rate?
A cure rate is the percentage of delinquent accounts that are brought current, meaning the consumer has made a payment that satisfies the overdue balance. Cure rates are a key metric for ARM firms, as they reflect the effectiveness of recovery strategies and tools.
What is a recovery rate?
A recovery rate measures how much of the outstanding debt has been successfully collected. While cure rates focus on bringing accounts current, recovery rates focus on the overall amount recovered, whether partial or full.
How does digital payment technology help with cure rates?
Digital tools like pay-by-link, text-to-pay and debit card acceptance reduce the friction consumers face when paying. They make the process faster and more convenient, leading to more on-time payments and fewer abandoned transactions.
Why is debit card acceptance important in collections?
Debit cards offer near-instant payment confirmation and carry lower return risk compared to ACH. In collections, debit acceptance helps reduce failed transactions and allows realtime posting, which supports faster recovery.
What does realtime posting mean?
Realtime posting means that once a payment is made, it is immediately reflected in your system of record. This avoids delays in updating account statuses, prevents unnecessary follow-up calls and supports accurate compliance reporting.