The rise of online payment solutions has impacted nearly every industry, shaping consumer expectations for everything from grocery shopping to high-level business operations.  

People aren’t just accustomed to digital payments—they actively seek them. 

While law firms have historically been slower to adopt new technology solutions, the reality is that law firms must keep up with payment trends to stay competitive. At the same time, it’s imperative that firms balance operational needs and compliance obligations. Not doing so can result in half-implemented financial solutions, poor resource use, and costly reputational damage.  

So what do law firms need to know about tech trends to make the right investments for payment solutions?  

An overview of the legal technology landscape 

While this article focuses on payment solutions, it’s important to discuss the broader, legal technology environment. In the last decade, a plethora of legal industry-specific digital solutions have emerged and are being adopted by law firms.  

Besides online payment processors, some of the most commonly used technology solutions include: 

• ​​Practice management software 
• Time and expense tracking tools 
• Secure file-sharing tools 
• eSignature solutions 
• Client relationship management software 
• Client portals 
• Accounting solutions 
• Analytics and reporting software 

While generic versions of these solutions have existed for some time, legal industry versions are emerging due to compliance and ethics concerns, and the unique nature of law firm accounting and performance metrics.  

Additionally, integrated legal software solutions are on the rise to control firm technology costs and to eliminate the cumbersome and inefficient practice of using multiple solutions.

Emerging payment trends in the legal industry 

Many law firms have adopted new payment capabilities, offering multiple digital options for clients.  

Digital wallets 

Digital wallet use has risen significantly in recent years. According to a Forbes Advisory survey, 53% of Americans use digital wallets more frequently than traditional payment methods. Some of the most popular providers include Apple Pay, PayPal, Venmo, and Cash App.  

Digital wallets are not only secure, but convenient and fast. However, the downside for law firms is that these systems are often disconnected from other tools. Most importantly, they can pose a host of compliance concerns for attorneys, from maintaining appropriate data security measures to avoiding ethical missteps in handling client funds.  

Digital payment processors 

Digital payment processors such as Stripe are also widely used as electronic payment facilitators, allowing payments with credit cards, debit cards, and digital wallets. A McKinsey study in 2023 found that 73% of participants reported making online purchases in the last year.  

However, industry-agnostic solutions like Stripe come with compliance issues and other risks because they are not designed to meet the specific requirements of law firms. Legal-specific payment processors address these concerns, with features that offer essential law firm features like trust accounting safeguards.  

Cryptocurrency 

In an effort to keep up with modern payment methods, some law firms are even accepting cryptocurrency payments such as bitcoin, ethereum, tether, and cardano. As a form of payment, cryptocurrency represents a growing share of the market. As of 2024, an estimated 15.56% of the US population (52.9 million people) owned cryptocurrency and 68% of cryptocurrency owners report an interest in using it for a wide range of purchases.  

However, accepting bitcoin or another cryptocurrency carries risks for law firms.  

Cryptocurrencies are not insured or backed by any government body, and the value of bitcoin or other cryptocurrencies fluctuate. Additionally, many people are skeptical about cryptocurrency, so accepting such payments could impact your firm’s credibility and reputation. 

ACH payments 

Automated clearing house payments are a form of eCheck, and offer convenience, speed, and security by transferring funds directly from the client’s account to your firm’s account.  

ACH payments have grown in popularity in recent years. Consumer internet-initiated ACH payments increased by 5.7% in 2023. Same-day ACH payments increased in volume by 22.3% in 2023 as well.  

ACH payments are typically less expensive to process and can be processed faster than non-electronic methods. They’re also easy to automate, making them well-suited to recurring transactions.  

Integrated payment solutions 

Another solution that has arisen for law firms is integrated payment processing.  

Integrated payment solutions incorporate payment processing into the firm’s practice management platform. They allow clients multiple payment options, such as credit cards, debit cards, and digital wallets while keeping all data within one secure ecosystem.  

Several benefits are contributing to the rising use of industry-specific integrated payment solutions: 

• Streamlined workflows and improved efficiency, due to features like automatic data entry, immediate invoice updating, and simplified reconciliation 
• Enhanced data security and compliance features that are built into the system, drastically reducing risk 
• Reduced need for multiple software integrations since the solution is fully integrated 
• Reduced technology spend due to multiple functions offered by the integrated solutions  

Payment processing and data security: what law firms need to know in 2024 

Data security is an increasingly pressing concern for law firms, which handle sensitive client information and financial transactions on a daily basis. Statistics show that 25% of law firms experienced a data breach in 2023.  

With cyberattacks becoming more commonplace, legal professionals need solutions that provide robust security without overburdening resources.  

Today’s integrated payment processors are a valuable option to consider. CosmoLexPay, for instance, safeguards law firm data through bank-grade encryption, multi-factor authentication, and regular security audits to safeguard financial transactions. What’s more, by centralizing payment processing within a secure, legal-specific platform, firms can significantly reduce the risk of data breaches and compliance violations. 

When it comes to security, the stakes are high. A single data breach can lead to severe consequences—financial losses, reputational damage, and potential disciplinary action. In fact, 60% of small businesses that suffer a cyberattack go out of business within six months. 

By investing in a secure, integrated payment solution, law firms can protect their clients’ trust, maintain compliance, and ensure the longevity of their practice in an increasingly digital landscape. 

Introducing CosmoLexPay 

CosmoLexPay has emerged as a leader in the integrated payment solution industry, offering end-to-end electronic payment processing.  

Key features and capabilities of the CosmoLexPay solution include: 

• Secure online payment processing for credit cards and ACH payments 
• Compliance with legal industry regulations such as trust accounting 
• Automated reconciliation and bookkeeping 
• Client portal for easy online payments 
• Detailed reporting and analytics on payment trends 
• Mobile-friendly payment options 
• Multi-factor authentication and encryption for enhanced security 

CosmoLexPay integrates with CosmoLex’s practice management software, which covers client intake, CRM, timekeeping, document management, calendar workflows, trust accounting, and business accounting. 

This unified system saves time by simplifying processes, minimizing lost billable hours with mobile timers, and making accounting tasks, including trust accounting, easier. Its legal-specific features help prevent compliance issues. 

Try CosmoLexPay today and see the difference an integrated solution can make for your firm.