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EBPP in Western Europe and the US 2004Product Type: Market Research ReportPublished by: Datamonitor Published: February 2004 Product Code: R313-6490 Description IntroductionEarly forecasts on adoption and growth of electronic bill presentment and payment solutions were optimistic. But despite the potential benefits of this new technology, the predicted growth in Europe has yet to appear, and even in the US providers have struggled to demonstrate healthy business. This briefing examines the reasons behind this and looks at the market's future prospects. Scope Covers the EBPP markets (B2C only) in the US and Western Europe, particularly focusing on the UK Utilizes information from primary interviews with leading market players, such as CheckFree Report Highlights Out of the two main models, the biller-direct approach to EBPP has had much more success with consumers. However, industry experts agree that the future lies with the thin version of the consolidation model, as it allows billers to maintain close customer contact, while offering consumers the convenience of consolidated bill viewing. Despite the competitive advantages EBPP can bring, growth of the market has been below expectations. Though the US is the global market leader, Datamonitor estimates that EBPP accounted for less than 10 per cent of all US bills. In the UK EBPP solutions have yet to catch on, with less than 1 per cent of all bills delivered and paid online. One of the reasons for the indifferent EBPP growth in Europe are existing payment infrastructures. Direct debit, for example, demands minimum effort from consumers and is cheaper than online payment processing. However, online billing offers long-term advantages of targeted marketing and cross-selling which cannot be ignored. Reasons to Purchase Gain understanding of how different models of electronic bill presentment and payment work Identify competitive advantages EBPP solutions can bring to your business Develop successful EBPP strategy through the assessment of benchmarking examples Scope Estimates the current size of the EBPP markets in the US and the UK, and compares it with the market's potential size Assesses EBPP strategies of prominent market players in the US and Western Europe Table of Contents ABOUT DATAMONITOR 2CHAPTER 1 INTRODUCTION 6 What is this briefing about? 6 Scope and definitions 6 Who is the target reader? 7 How to use this briefing 7 CHAPTER 2 EBPP EXPLAINED 8 There are two main models of electronic bill presentment and payment 8 The biller-direct approach establishes EBPP capabilities on a billler’s own website 8 The consolidator approach relies on a central aggregator 10 So far, the biller-direct method has proved more popular, though the future momentum lies with the thin version of consolidation model 12 Various types of players are currently contesting the market 14 Traditional billers can benefit from the cost-saving aspect of EBPP 14 Third party providers have established a strong position in the market 14 FS companies have multiple roles in the EBPP process 15 CHAPTER 3 EBPP - STRUGGLING TO SUCCEED 17 EBPP implementation can provide companies with a number of competitive advantages 17 Cost-saving is one of the most compelling arguments for EBPP 17 EBPP offers competitive advantages through delivery of superior customer service 18 EBPP offers valuable opportunities for targeted marketing 18 EBPP offers enhanced cross and up-selling opportunities 18 EBPP helps in attracting more affluent customers 19 Despite the potential advantages of EBPP implementation, the current market is struggling in terms of its size 19 The US market is far more developed in terms of EBPP use and adoption 19 While in the UK EBPP accounts for a fraction of all consumer bills 20 If EBPP were implemented fully, the potential cost savings would be substantial 21 Though the potential savings can be huge, only the most advanced EBPP models can offer them 22 CHAPTER 4 YET, TURNAROUND IS EXPECTED 25 Introduction 25 A number of obstacles has prevented the EBPP market from growing more rapidly 25 Consumer attitudes towards EBPP have been lukewarm 25 A number of prominent players have been driving the US EBPP market forward 28 CheckFree - the global leader in the provision of EBPP solutions 29 Bank of America - the largest online customer base in the world 31 A number of other companies are also contesting the EBPP market in the US 32 European companies have been slower in establishing a business case for EBPP 33 Alliance & Leicester - giving UK consumers a taste of consolidation 33 The UK Post Office - a less successful attempt at consolidation 34 Companies in different European countries are in various stages of EBPP development 35 CHAPTER 5 CONCLUSION 37 Online bill presentment will drive the future growth of EBPP, but a lot will depend on consumer take-up 37 The future EBPP growth will come through online bill presentment 37 But the growth can only be achieved with the help of consumers 38 Datamonitor Cards Team View 39 CHAPTER 6 APPENDIX 40 Definitions 40 Research methodology 41 Further information 41 Relevant links 41 Relevant reports 42 Datamonitor Financial Services Consulting 43 Datamonitor Retail Banking team 45 How to contact experts in your industry 46 |
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