Recent figures suggest that consumers are back to buyingvehicles at a pre-recession pace – sales this year have alreadysurpassed 15 million, with May producing the highest sale figuresin six years.

Not only are consumers buying vehicles, but their shoppinghabits are changing, with the Web now the most influential source.A recent study by AutoTrader.com has shown that car shoppers arebecoming more and more likely to use the Internet to find out abouta particular car, while a survey of buyers in the used car marketfound that 76% of used-car buyers say they use the Internet in thecar-shopping process, up from 71% in 2011.

And the consumer is now demanding different finance options ontheir purchases: the average length of a loan is now 72 months fornew vehicles and 58 months for used; people are opting to paybi-monthly; and Gen Y are buying fewer, smaller and older cars. Allare looking for more flexible payment channels such as mobile andonline.

A digital strategy is now a necessary component for the autofinance industry and not just for the purchase, loan or leaseorigination. Auto finance servicers need to be aware that thesesame Web-savvy consumers expect to use online technology to paytheir loan or lease, as well as to access information and buyadditional services or products for their car.

The industry must shift to electronic payment channels to offermore varied, convenient and compliant options while still acceptingpaper checks and cash.

Mobile-Optimized Auto Finance Add to this thegrowth in mobile, and it's clear that the auto finance industrymust sit up and take note of these payment channels. Customers areusing their mobile phones to pay their bills. The Pew ResearchCenter cites that at least 50% of the U.S. population now usesmobile smart phones, and an October 2012 Litle & Co. studyshowed that 25% of consumers with a smartphone or tablet computermade payments using their devices.

This number is a clear indication that the auto finance industryneeds to add mobile solutions in order to give customers the optionto pay however they wish.

Convenient, Flexible Payment Solutions Theseproven payment technologies are already there and available, andcan enable auto finance companies to offer consumers the sort ofpayment options which are available in other markets – from payingphone bills to making bank transfers. And the use of these paymenttechnologies has an added bonus in terms of customer service – theyhelp build loyalty programs, deliver payment alerts, and enablepeople to manage their debts.

So auto finance companies need a digital strategy that wrapsinto it a payment processing solution that manages ACH accounts,credit and debit card transactions in addition to ways to automateacceptance of paper checks, money orders and cash payments – thesort of service we offer our customers.

But on top of this, there are new, consumer-friendly paymentoptions available for auto finance companies to offer theircustomers. I have listed some here:

• Web Payment Portal – Used for single,future-dated and recurring loan and lease payments, consumers arehappy and comfortable with payments via a Web payment portal. Theyshould provide clients with their own secure Web payment portal,branded with the relevant company's name and logo to engender thetrust of customers. These accept and process electronic check,debit or credit card payments and encourage customers to settlepayments effectively – and provide consistent enforcement andconsolidated information for an auto finance company.

• Mobile: Payment, Mobile Wallet, Text Solution– Supporting mobile payments provides a convenient option tosupport today's on-the-go consumer. The market is already seeingthe growth in mobile wallets for the maintenance of payment accountinformation and loyalty programs. The industry can leverage thistechnology to reduce costs associated with traditional consumerbilling – printing and postage time and costs – sendingtime-sensitive notices and outstanding balance statements andpayment reminders. Through a mobile-optimized payment portal,customers can perform a number of electronic transactions includingmaking payments and additional purchases. The text functionalityenables a finance company to send automated payment reminders,balance due notices or post-dated check notifications and makepayments by return text.

• IVR – A solution that allows callers tointeract with an automated telephone-payment system to make ACH,debit and credit card payments 24/7. IVR is seen as key growth areaand we recently conducted research that showed that IVR is set toalmost double from 33% to 60% in 2013.

• Full Electronic Bill Presentment and Payment(EBPP) – For print, mail or email communications forstatements and billing reminders.

But What About Compliance? Recent changes inthe CFPB's legal positioning has given the bureau a range of newinvestigative powers, including the ability to review salecontracts, telephone recordings, account transfers, trainingprograms and scripts for employees, to name but a few.

Managing the constant flow of information, rules and regulationscan be challenging. Technology can assist in this area, as theregulations and procedures for disclosure and payment receipt aretransparent, and can be easily and consistently provided. All ofthese payment solutions enable companies to build compliance intotheir payment collection procedures.

Customer Value The challenges the auto financeindustry is facing are part of a consumer-driven revolution; theincrease in the use of Web and mobile for payments in otherindustries is significantly impacting the automotive industry, andtaking a proactive approach to offer multiple, varied paymentoptions will be key in order to encourage customers to pay ontime.

Marya Ulis isstrategic alliance director at BillingTree inPhoenix.