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Online Bill Viewing and Payment: The End of the "Bank versus Biller" Argument

Product Type: Market Research Report
Published by: Javelin Strategy & Research
Published: June 2006
Product Code: R3424-6
Description
Overview

The "bank versus biller" argument for online bill viewing and payment is passé. This analysis provides a new paradigm for financial institutions regarding their online bill payment programs, based on insight on the number of consumers viewing and paying bills online, the breakdown among account holders at the largest financial institutions, and the differences between con-sumers’ online bill payment preferences and actual behavior.

Primary Questions
  • Where do consumers prefer to view and pay bills—at biller or financial institution sites?
  • What are major trends among a more tenured online bill payment population?
  • How can financial institutions benefit from consumers paying bills at biller sites?
  • What must large banks do to attract customers of second-tier financial institutions?
Findings and Analysis

Despite aggressive promotional spending by the nation’s largest banks, nearly 60% of the more than 51 million US consumers who pay bills online at a financial institution site do so at a sec-ond-tier bank or credit union. Consumers consistently stated that they would prefer to use bank sites; however, consumers actually pay more bills at biller sites. Financial institutions can still benefit if they effectively promote debit card usage among their account holders for bill payment at biller sites.

Audience: Financial institutions’ online banking and debit-issuing divisions, billers, bill payment vendors
Table of Contents

Overview




Findings and Analysis




Online Banking Bill Payment Population




A Disparity Exists Between Consumer Bill Payment Preference and Behavior




Consumer Preference for Bill Payment using Debit Cards Means Interchange for FI’s




Table of Figures

Figure 1: Active Online Band and Credit Union Bill-Pay Population

Figure 2: Consumer Preference and Behavior for Online Bill Viewing and Payment

Figure 3: Preferred Methods for Paying Bills
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