Emerging Trends in U.S. Payments and Bill Presentations Systems

The main reason for doing this study is that advances in telecommunications and information technologies are leading to a revolution in the U.S. payment industry. This study seeks to answer such questions as how will consumers and businesses invoice and pay others in the future? Diverse payment products such as paper-based payments (cash and checks) and electronic payment products and services (credit and debit cards, electronic funds transfer, home banking, etc.) are analyzed in detail as well as underlying socioeconomic currents, technology developments, market conditions and opportunities and 10 year forecasts. The emerging electronic bill presentment and payment (EBPP) market is examined in particular detail. The role of the Internet and e-commerce are reviewed in the context of business-to-business, consumer-to-business and other payment relationships as well as the emergence of new competitors such as "infomediaries." This comprehensive BCC, Inc. study analyzes the current U.S. market and identifies the most promising electronic and other payment opportunities for the next 10 years.

The scope of the report includes cash (coin, currency and digital cash), paper (regular checks, money orders, and travel checks) and electronic checks, electronic funds transfer (EFT), credit cards, debit cards, smart cards, electronic bill payment and presentment (EBPP). Also included are other PC-based payments, telephone payments, and other emerging electronic payment products and services used by consumers, business and government in making and receiving payments to and from each other. The scope of this report is comprehensive, covering the present status of, and future prospects for paper-based and electronic payments in the U.S. It covers the many issues concerning the merits and future prospects of the payments business, including strategies and e-commerce technologies. Transactions made via automated teller machines (ATMs) and point-of-sale (POS) terminals are included in the report and broken out separately for comparative purposes. From an accounting standpoint in the scheme of the payment flows (and transactions), however, these transactions are included in credit cards, debit cards, and automated clearinghouse transactions.

Title

• Introduction
  
  
• Study Goals And Objectives
  
  
• Reasons For Doing The Study
  
  
• Scope And Format
  
  
• Contribution Of The Study
  
  
• Information Sources
  
  
• Related Bcc Documents
  
  

Socioeconomic Overview And Government Regulation

• Overview
  
  Demographic Background
  
  
• Long-Term Economic Trends
  
  
• What Is Money?
  
  
• Government Regulation And Other Issues
  
  
• Reserve Requirements
  
  
• Deposit Insurance
  
  
• Consumer Protection
  
  
• Privacy Laws
  
  
• Government Policies Promoting Electronic Payments
  
  
• Antitrust Issues
  
  
• E-Signature
  
  
• Other Policy Issues
  
  
• Will The New Dollar Coin Be Accepted?
  
  

U.S. Payments By Type

• Overview
  
  
• Cash
  
  
• The Nature Of Cash
  
  
• Cash Handling And Other Costs
  
  
• Impact Of Credit, Debit And Stored-Value Cards
  
  
• The Atm
  
  
• Outlook For Cash
  
  
• Checks
  
  
• The Nature Of Checks
  
  
• Markets For Checks
  
  
• Advantages Of Checks
  
  
• Check Processing
  
  
• Economics Of Processing
  
  
• Electronic Means Of Enhancing Check Processing
  
  
• Electronic Imaging
  
  
• Electronic Check Presentment
  
  
• Check Conversion
  
  
• Market Players
  
  
• Impact Of Electronic Payment Means
  
  
• Outlook For Checks
  
  
• Credit Cards
  
  
• The Nature Of Credit Cards
  
  
• The Types Of Credit Cards
  
  
• General-Purpose Cards
  
  
• The Role OF Non-Bank VS. Bank Cards
  
  
• Visa
  
  
• Mastercard
  
  
• Discover
  
  
• American Express
  
  
• Outlook FOR General Purpose Cards
  
  
• Retailer Cards
  
  
• Loss OF Market Share TO General-PURPOSE Cards
  
  
• Responses BY Retailers
  
  
• Other Issues
  
  
• What Does THE Future Hold?
  
  
• Oil Company Cards
  
  
• Co-Branding AND Other Responses BY Oil Companies
  
  
• Competition FROM Debit Cards
  
  
• Outlook
  
  
• The Internet And Credit Cards
  
  
• Outlook For Credit Cards
  
  
• Debit Cards
  
  
• A Short History
  
  
• Point-Of-Sale (Pos) Technology
  
  
• Growth Of Debit Card Use
  
  
• Electronic Benefits Transfer (Ebt)
  
  
• The Nature And Types Of Debit Cards
  
  
• On-Line Debit Transactions
  
  
• Off-Line Debit Transactions
  
  
• Consumer Acceptance
  
  
• Merchant Acceptance
  
  
• Debit Card Fees
  
  
• Other Factors
  
  
• Outlook For Debit Cards
  
  
• Electronic Funds Transfer (Eft) Services
  
  
• Atm And Pos Systems: Leading Drivers Of Eft
  
  
• Direct Deposit/Payment, Another Eft Driver
  
  
• The Nature Of Eft/Ach
  
  
• Ach Services/Types
  
  
• Advantages Of Ach
  
  
• Markets/Applications
  
  
• Impact Of Electronic Bill Presentment And Payment
  
  
• Impact Of Check Conversion And Related Technologies
  
  
• Outlook
  
  
• The Nature Of Electronic Shopping And Banking
  
  
• Personal Computer (Pc) Banking
  
  
• Personal Computer Use In The Home
  
  
• Closed System Banking
  
  
• Internet Banking
  
  
• Means Of Delivery: Telephone Versus Cable And Others
  
  
• On-Line Banking And The Security Issue
  
  
• Costs
  
  
• Outlook
  
  
• Telephone Banking
  
  
• Technology
  
  
• Advantages Of Telephone Banking
  
  
• Outlook
  
  
• Electronic Bill Presentment And Payment
  
  
• The Mechanics Of Pre-Authorized Bill Payment
  
  
• Biller Direct Model
  
  
• Consolidator Model
  
  
• Other Models
  
  
• Business-TO-Business Applications
  
  
• Benefits Of Using Ebpp
  
  
• Benefits TO Businesses
  
  
• Benefits TO Consumers
  
  
• Potential Ebpp Markets
  
  
• Outlook For Ebpp
  
  
• Ebpp Players
  
  
• Electronic Stored Value
  
  
• Stored Value Cards
  
  
• Single-Purpose Cards
  
  
• Multi-Purpose AND Smart Cards
  
  
• A Smart Card Primer
  
  
• Will Smart Cards Find Acceptance?
  
  
• True Electronic Money
  
  
• Outlook
  
  

Consumer Payment Markets

• Overview
  
  
• Consumer Payment Markets
  
  
• C2c Electronic Payments: The Next "Killer" App?
  
  
• Or Will It Be M-Commerce?
  
  
• Electronic Vs. Paper-Based Payments
  
  
• Cash
  
  
• Credit AND Debit Cards AS Substitutes
  
  
• Meanwhile THE Atm IS Promotes THE Use OF Cash
  
  
• Stored Value Cards: An Alternative TO Cash?
  
  
• Other Factors Impacting Cash
  
  
• Checks
  
  
• Credit Cards
  
  
• Debit Cards
  
  
• Other Electronic Payments
  
  

Business Payment Markets

• Overview
  
  
• Business Payment Markets
  
  
• Electronic Data Interchange
  
  
• The Promise Of E-Commerce
  
  
• Corporate Credit Card Use
  
  

Government Payment Markets

• Overview
  
  
• Government Payment Markets
  
  
• The Promise Of The Internet
  
  
• Electronic Benefit Transfer
  
  
• Benefits Of Ebt
  
  
• Ebt Markets
  
  
• Other Issues
  
  
• Other Electronic Payment Means In Government
  
  

Industry Structure

• Overview
  
  
• The Value Chain: Commerce-Related Payment Revenues
  
  
• Checking Intermediaries
  
  
• Credit And Debit Cards
  
  
• Automated Teller Machines
  
  
• Electronic Funds Transfer Fees
  
  
• Other
  
  
• Processing And Payment Networks
  
  
• The Redrawing Of Industry Boundaries
  
  
• Structural Change In The Payments Industry
  
  
• Margin Erosion
  
  
• Cost Leadership And Outsourcing
  
  
• The Shakeout Continues: Industry Consolidation
  
  
• New Entrants
  
  
• Changing Processor Strategies
  
  
• The Role Of "Infomediaries"
  
  

Company Profiles

• Credit Cards Associations And Companies
  
  
• American Express Company
  
  
• Mastercard International
  
  
• Morgan Stanley Dean Witter & Co.
  
  
• Visa International
  
  
• Card Issuers
  
  
• Bank One Corporation
  
  
• Capital One Financial Corporation
  
  
• The Chase Manhattan Corporation
  
  
• Citigroup Inc.
  
  
• Mbna Corporation
  
  
• Providian Financial Corporation
  
  
• Other Banks
  
  
• Bank Of America Corporation
  
  
• First Union Corporation
  
  
• Fleetboston Financial Corporation
  
  
• Wells Fargo & Company
  
  
• Transaction Processors
  
  
• Concord Efs, Inc.
  
  
• Deluxe Corporation
  
  
• Electronic Payment Exchange
  
  
• First Data Corporation
  
  
• Lml Payment Systems Inc.
  
  
• Electronic Bill Presentment & Payment (Ebpp) And Other Electronic Money Players
  
  
• Bankserv Inc.
  
  
• Beenz.Com Inc.
  
  
• Checkfree Holding Corporation
  
  
• Cyberbills, Inc.
  
  
• Ebay Inc.
  
  
• Paymybills.Com
  
  
• Paytrust Inc.
  
  
• Princeton Ecom Corporation
  
  
• Propay.Com
  
  
• X-Com
  
  
• Technology Providers
  
  
• Billing Concepts Corp.
  
  
• Ecash Technologies, Inc.
  
  
• Exchangepath, L.L.C.
  
  
• Intuit Inc.
  
  
• Microsoft Corporation
  
  
• Qpass Inc.
  
  
• S1 Corporation
  
  
• Yodlee, Inc.
  
  

Appendix: Wholesale Payment Systems

• Overview
  
  
• Domestic Wholesale Payments
  
  
• Fedwire
  
  
• Chips
  
  
• Foreign Payment Systems
  
  
• S.W.I.F.T.
  
  
• Target
  
  
  
  

List Of Tables




Summary Table:  Electronic Payment Overview, Through 2010

1 Share Of U.S. Households Using Payment Instruments


2 U.S. Demographic Outlook And Assumptions, Through 2010


3 U.S. Economic Outlook And Assumptions, Through 2010


4 Regulation Of Payment Methods


5 U.S. Retail Payments Gross Payment Value, Through 2010


6 U.S. Retail Payment Transaction Volume, Through 2010


7 Cash Payments*, Through 2010


8 Food Stamps, Through 2010


9 Point-Of-Sale (Pos) Terminal Outlook, Through 2010


10 Automated Teller Machine (Atm) Outlook, Through 2010


11 Check Payments, Through 2010


12 Consumer Checks, Through 2010


13 Check Clearing, Through 2010


14 Electronic Check Presentment, Through 2010


15 Electronic Check Conversion, Through 2010


16 Credit Card Payments, Through 2010


17 Credit Cards By Type, Through 2010


18 Debit Card Payments, Through 2010


19 Electronic Benefit Transfer (Ebt) Payments, Through 2010


20 Debit Cards By Type, Through 2010


21 Automated Clearing House (Ach) Payments, Through 2010


22 Business Ach Payments, Through 2010


23 Electronic Bill Presentment And Payment (Ebpp) In The Business Sector, Through 2010


24 Home Computer Banking, Through 2010


25 Telephone Banking, Through 2010


26 Electronic Bill Presentment And Payment (Ebpp), Through 2010


27 Stored Value Cards, Through 2010


28 Electronic Money Payments, Through 2010


29 Consumer Payments Gross Payment Value, Through 2010


30 Consumer Payment Transaction Volume, Through 2010


31 Cost Components For Payment Alternatives


32 Distribution Of Establishments By Industry


33 Business Payments Gross Payment Value, Through 2010


34 Business Payment Transaction Volume


35 Financial Edi Payments, Through 2010


36 Government Payments Gross Payment Value, Through 2010


37 Government Payment Transaction Volume, Through 2010


38 Payment Fees And Revenues, Through 2010


39 Sources Of Revenue Of Credit Card Programs


40 U.S. Wholesale Payments Systems, Through 2010

List Of Figures

1 Gross Payment Value By Sector, Through 2010


2 Gross Payment Value: Paper Vs. Electronic, Through 2010


3 Transactions By Sector, Through 2010


4 Transactions: Paper Vs. Electronic, Through 2010


5 Point-Of-Sales (Pos) Terminals, Through 2000


6 Automated Teller Machines, Through 2000


7 Checks As A Share Of Total Non-Cash Payments


8 Cost Of Checks And Direct Deposit, Through 1995


9 Bank Costs Of Processing Transactions


10 Gross Consumer Payments To Sector, By Value, Through 2010


11 Gross Consumer Payment Value: Paper Vs. Electronic, Through 2010


12 Consumer Transactions, Through 2010


13 Consumer Payment Transactions: Paper Vs. Electronic, Through 2010


14 Gross Business Payment Value: Paper Vs. Electronic, Through 2010


15 Gross Government Payment Value: Paper Vs. Electronic, Through 2010