Hidden Costs in U.S. Bill Payments Exceed $100 Billion Annually

The report, titled the Payment Experience Gap, argues that businesses fixate on transaction fees while ignoring the systemic costs that make up over 80% of the total expense. In a representative lending model, the true cost per payment reaches $7.22, with only $1.20 attributed to standard fees. The remaining $6.02 stems from support needs, operational inefficiencies, and customer experience hurdles.

For a mid-market lender processing 500,000 payments annually, these hidden expenses total roughly $3 million. Support costs serve as the primary drain at $2.70 per transaction, followed by operational burdens like ACH returns and manual reconciliation at $2.01. Friction—such as payment abandonment or delays—adds another $1.31. According to Mike Kaplan, Chief Revenue Officer at PayNearMe, this discrepancy is a significant oversight that keeps companies from optimizing cash flow. The findings suggest that by shifting focus from simple transaction processing to comprehensive Payment Experience Management, organizations can transform these back-office costs into a measurable operational advantage.