Product Type: Market Research Report
Published by: TowerGroup
Published: December 2002
Product Code: R301-0269Description The evolution of the Internet and its use for financial services such as electronic bill presentment and payment (EBPP) are creating a variety of new options for consumers. Yet, development of this market leaves numerous questions unanswered. For service providers and billers offering EBPP, it is critical to monitor and understand how the market is responding to these emerging alternatives.
Table of Contents Highlights
In its 2002 Market Survey of Billing and Bill Payment Practices, TowerGroup studied nearly 4,000 households, weighted by age and income to accurately represent all US households. Results provide a comprehensive assessment of developments in electronic billing and bill payment.
In 1998 according to TowerGroup research, just 2% of households used online bill payment, while TowerGroup finds in 2002 that 13% use these services. In 2002, households are also paying a monthly average of 3.7 bills online.
The status quo remains a substantial obstruction in moving even active online banking and bill payment users to a higher reliance on these services. Twenty-six percent of the households using Internet bill payment and 41% of online banking users still prefer to write checks and use the US mail for bill payment purposes.
TowerGroup estimates that just 1% of consumers viewed bills online in 1998, while in 2002, a full 20% of consumers have viewed electronic bills or billing statements online. Fifteen percent can be considered active users, having reviewed bills online within the month before the survey.
Electronic presentment functionality increases the potential for shifts in providers and practices, creating a threat to banks as well as an opportunity for nonbanks. Just 6% of the current users of electronic presentment say they prefer an online banking service for reviewing their bills.
|
|
