Condo & HOA Payments: then and now

Payments – Then, Now, and in the Future

Speaker Name


• Ben Truehart is the Senior Vice President at PayLease, one of

the nation’s leading e-payment providers catering to the

property management industry. He has over 10 years of

experience in the payments and property management

industries.

• Ben is a frequent speaker and guest panelist at events catering

to property management professionals and has presented at

dozens of conferences over the past few years. He is also a

regular speaker for PayLease’s monthly webinar series that

addresses hot topics in the property management industry.

• Ben holds a degree in Advertising Management and Marketing

from Drake University along with a MBA from the University of

Iowa. Prior to joining PayLease, Ben worked for CDS Global, a

subsidiary of the Hearst Corp, where he was a Product &

Marketing Manager.

Speaker

Ben Truehart

Section One

•Overview

•More

•Still More

Section Two

•Overview

Section Three

•Overview

Section Four

•Overview

Agenda


• What it Means to You

• Preparing for the Future

• Conclusion

• Then & Now

Then & Now


Oh how far we’ve come…

• The beginning: Barter

• 9000 BC: Cattle

• 1200 BC: Cowrie Shells

• 500 BC: Metal Coins

• 806 AD: Chinese Paper Money

• 1661 AD: Bank Notes

• 1785 AD: The US Dollar

• 1950 AD: Diners Club Card

• 1958 AD: American Express and Bank Americard (VISA)

• 1997 AD: First payment made with a cell phone

• 2009 AD: Bitcoin introduced


How do we pay for stuff today?

Currency Credit

Payment Types


Currency Account-based Credit

The Internet: A Game-Changer

Though payment methods remain the same,

the internet has changed the payment types we select


Smart Phones

• The International Data Corporation predicts that by 2015 the Internet will be accessed more often through mobile devices than through PCs

• The number of smartphone users is currently estimated at 163.9 Million and is projected to be 209.7 Million by 2017

• Statista 2014


52%41%

3%2%

2%

Android

Apple

Blackberry

Windows

Other

Source: comScore 2014

Checks are Dying

16

9

0

2

4

6

8

10

12

14

16

18

2013 2014 2015 2016 2017 2018

Billions

of

Dollars

Forecast: Check Transactions - US

Source: Federal Reserve, Business Intelligence012

CAGR= -10.8%


Cash is Fading

$1,340

$1,300

$1,320

$1,340

$1,360

$1,380

$1,400

$1,420

$1,440

2013 2014 2015 2016 2017 2018

Billions

of

Dollars

Forecast: US Cash Transaction Volume

Source: Federal Reserve, Business Intelligence012


For the First Time, Consumers are Using Debit and Credit More Often than Cash

40%42%

7% 7%

4%

14%

34%

19%

27%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Cash Credit and Debit Check OnlineTransfer/Bill Pay

Other

US Number and Value of Consumer PaymentsBy instrument type share of total

Number of Payments

Value of Payments

Source: Federal Reserve, Business Intelligence, April 2014


Perc

enta

ge o

f Paym

ents

The Winners and Losers


It’s all about Channels


Retail store

Mail

Phone

Online

Peer-to-Peer

Video Killed the Radio Star


61%

56%

51%

47%

38%

34%31% 30%

26%23%

13%16%

22%24%

35%

39%42%

44% 45%

50%

0%

10%

20%

30%

40%

50%

60%

70%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Pe

rcen

t o

f B

ill P

aym

en

ts/M

on

th

Check vs. Online Payments

Check Payment

Online Payment

2011 Consumer Trends Survey,

Fiserv Inc., 2011

Online BankingBiller Direct Alternative

Channel: Consumer’s Choice

Online Bill Payment Channels


What Impacts our Channel Selection?

Biller Direct

• Control & Timing

• More Payment Types

Bank Pay

• Consolidation

• Financial Management


Biller DirectOnline BankingChecks

Trends – Biller Direct vs. Bank Bill Pay


15.9

18.8

27.2

31.4

41.0

44.8 45.7 46.648.0

53.4

11.7

14.415.3

17.9

26.328.2

30.0

32.6

36.4

40.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Millions

of

House

hold

s A

dopti

ng S

erv

ice

Biller Direct vs Online Banking

Biller Direct

Online Billing

2011 Consumer Trends Survey,

Fiserv Inc., 2011

Bill Payments in 2013

• 74% of households pay bills via biller direct or through online banking

• % of households paying bills with checksdrops another 8%

• Limited overlapbetween online bankers and biller-directloyalists


74%

62%

53%

48%

45%

36%

24%

22%

17%

16%

16%

11%

Online (biller or financial institution)

Online at biller site

Check

Auto-Debit (ACH)

With a debit or credit card

Online at a financial institutionwebsite

Both biller and financial institutionsite

In person retailer location

By calling biller

Using a mobile phone

In person at a check cashing,convenience or grocery store

Online through a non-bankingwebsite

Sixth Annual Billing Household Survey,

Fiserv Inc., 2013

What it Means to You


Annual Survey – Benchmarking

• Purpose: To serve as the property management industry’s first benchmark study regarding biller direct online payment adoption

• Methodology:• 2014: Year 3

• Survey and results tabulation completed by third party research firm (New Heights Research)

• Master list created; Sample of 585 management companies were surveyed

• Sample was segmented by portfolio type (HOA, SF and MF)and unit count (100-500, 501-1500, etc.)


72%

77%

83%

67%

69%

74%

67%

75%

79%80%

84%

91%

60%

65%

70%

75%

80%

85%

90%

95%

2012 2013 2014

Perc

enta

ge a

ccepti

ng o

nline p

aym

ents

HOA firms by size accepting online payments


Source: New Heights Research, 2014 Market Survey 012

Total HOA

1501-5000 units managed

501-1500 units managed

5000+ units managed

HOA E-Payment Adoption



5%

4%

8%

7%

5% 5%

10%

4%

16%

0

4%

1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

501-1500 Units 1501-5000 Units 5000+ Units

Change in Online Payments Status Among Core HOA 2013-2014

New penetration

Incremental

Full Switch

Reduced #

Total – 21%

Total – 17%

Total – 30%

Lot’s of Movement and Change…

Offline Payment Options Accepted

95%

48%

94%

12%

33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Money Order /Cashiers Check

ACH / Bank AutoDeduct

Personal Check CC Over the Phone Cash

Offline Payment Types Accepted



Online Payment Options Accepted

61%

67%

72%

37%

88%85%

92%89%

7%

13%

8%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All PMCs 500-1500 Units 1501-5000 Units 5000+ Units

Payment Types Accepted Online

Credit Card

ACH

PayPal



34%32%

41%

24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

All PMCs 500-1500 Units 1501-5000Units

5000+ Units

Percent of Payments Made Online

61%67%

72%

37%

88% 85%92% 89%

7%13%

8%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All PMCs 500-1500 Units 1501-5000Units

5000+ Units

Payment Types Accepted Online

Credit Card

ACH

PayPal

One Key Driver of E-Pay Utilization



Resident Adoption by Portfolio Type


16.5%

11.3%

4.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2009 2010 2011 2012 2013 2014

Utilization by Segment – First 12 Months

Single Family

Multi-Family

HOA

Source: PayLease Admin012

Preparing for the Future


The Future

MAKE IT EASY


4 Recommendations

1. Optimize your Websites and Portals• Mobile Friendly (optimized or responsive)

• App w/ common tools (e.g. e-pay, maintenance requests, etc.)

2. Statement Enhancements• E-Statements

• Mobile billing

• QR codes / SSO (single sign-on)

3. Online Banking Integration • Work with your banking partner to connect with online banking platforms

(MasterCard RPPS, CheckFree, etc.)

4. Set a Goal for Coupon Book Independence!


Defining Your Management Company

This presentation was given at the 2014 CAMfireConference by TOPS Software. CAMfire is an educational gathering of Community Association Management Professionals and TOPS Software users.

To learn more about CAMfire, visit www.camfireconference.com.

For mope community association management information, subscribe to http://camblog.topssoft.com

http://www.camfireconference.com/

http://camblog.topssoft.com/

Condo & HOA Payments: then and now

Real Estate

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