The debt collection software market is predicted to grow at a CAGR of 9.9% from 2022 to 2028, reaching US$ 6,068.25 million by 2028.
This growth is mainly due to the rising use of self-service payment models and the adoption of debt collection software to automate the loan collection process.
The market is expected to witness robust growth as businesses implement self-service payment platforms to keep track of their customers, track bill payments, and maintain credibility.
The debt collection software market is also driven by the demand for multichannel communication to reach debtors and improve the collection process through automation.
Self-service payment models enable secure acceptance of all payment methods, helps fintech to manage debt properly and eliminates the need for cashiers or attendants. Examples include: Europay MasterCard (EMV), Magstripe, and Near Field Communication (NFC). The increasing popularity of self-service payments is causing the debt collection software market to grow.
Impact of COVID-19 Pandemic on Debt Collection Software Market Growth
The COVID-19 pandemic caused a decrease in economic activity and loss of fiscal revenue, leading to higher default rates on debts and subsequent increased government spending in several countries. This resulted in an increased need for debt collection software.
The collections software market has been affected by factors such as loss of revenue, limited access to finance, high spending, and insufficient borrowing resources. Despite this, debt collection agencies have taken steps to highlight outstanding debts and provide opportunities for debtors to pay reasonable amounts, which has improved debt management and collection procedures.
The use of customer self-service (CSS) platforms has increased in debt collection, providing benefits such as a single view of each consumer's payment status and automated follow-up actions.
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“Debt Collection Software Market Forecast to 2028”
COVID-19 Impact and Global Analysis by Component, Deployment Type, Organization Size, and Industry Vertical
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