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Third-party digital bill payment provider Doxo is partnering with Plaid, a fintech that enables consumers to connect their bank accounts to other financial services providers through APIs. The partnership allows users to see their bank account balance in real time when they pay bills and is intended to help reduce overdraft fees.
Here’s what it means: With a bolstered feature set, Doxo’s solution could attract more business.
Overdraft monitoring further differentiates Doxo’s solution, which can lure more billers to its network. Billers that join Doxo’s bill pay network will be able to offer the overdraft monitoring benefit to their customers in June.
And Doxo has been working to build out its platform’s accessibility: The firm recently added Apple Pay as a payment option on its platform. Allowing billers to offer their customers flexible payment options and other benefits could attract more businesses to run on the Doxo network, which could ultimately increase its volume.
The bigger picture: The solution could further streamline digital bill pay and offer consumers more transparency into their accounts to better manage their money.
Doxo’s solution could allow customers to better monitor their expenses: The average customer pays6 to 10bills a month.That’s created a gap in the market for a solution that allows bill payments from multiple providers, while also giving customers a lens into their finances.
As digital bill pay rises, consumers are going to want the process to be as streamlined as possible: The share of bills paid digitally should rise from 56% in 2016 to 77% in 2022, according to Business Insider Intelligence estimates.
And digitizing bill payments inherently streamlines the process; the ability to view an account balance while keeping track of multiple bills can provide consumers with transparency needed to better manage their money.
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