Sponsored content from ICMA Strategic Partner, Tyler Technologies.

Government payment options can be confusing for residents looking to pay taxes, bills, or fees through different local, county, and state agencies. There are often different preferred payment types, and online payment accessibility varies by department.

Expectations around payments have shifted though, with residents interested in broader accessibility, while governments continue to look for systems that simplify processes for their resource-constrained offices.

Modern payment solutions can deliver improved accessibility for payers by supporting a broad range of payment options without the extra headaches that can traditionally come with accepting payments through a new channel. Governments across the county are increasingly looking modernize their digital payments infrastructure in three ways:

1. Supporting a Payment Method for Everyone

A 2021 survey by the FDIC found that the number of U.S. households without a bank account numbers around 6 million. That includes people who avoid banks because of distrust, or those who can’t meet account requirements. Those residents might pay by cash, but that option can be limiting if it requires visiting a government office during working hours.

Even among those with a bank account or credit card, there’s still high demand for different payment options. Automated phone payments are popular among older residents, while automatic online billing, bank transfers or cards, and alternative payment options like cryptocurrency, Venmo, or PayPal have risen in demand as the younger generation starts making more payments.

2. Reducing Late Fees, Collections, and Employee Strain

When residents have more and better options for payment, there are fewer missed payments, meaning less work for government employees who are tasked with reaching out to residents about late fees, working out payment plans, or even discontinuing service and sending bills to collections.

Reducing late payments helps employees focus on more important work, while also making sure agencies are collecting revenue on time. This helps ensure annual budgets are as accurate as possible, something both residents and government leaders are invested in.

3. Increasing Community Trust and Satisfaction

Payments are an everyday part of living in a community in the United States. From property taxes to fees for parking tickets or business licenses, or even park passes or facility rentals, residents and governments interact around payments multiple times every year.

When the process is simplified and inclusive for all parties, there can be an increase in government trust and resident satisfaction. A modern digital infrastructure can bring a wide variety of payment options into one platform, while streamlining payment receipt for government employees.