Online Bill Payment At All-Time High
Two studies recently revealed that consumers are becoming more comfortable with electronic bill payment but the percentages are still relatively small.
A Yankee Group study found that Internet, credit card and long-distance services were showing strong customer adoption of online bill payment. However, the company said that those types of payments were logical choices because Internet customers are already comfortable online and credit card and long-distance companies have been pushing electronic payment for a long time. Overall, Yankee said about 13 percent of the survey respondents were paying Internet service providers online, while 7 percent were paying credit card bills and 5.4 percent were paying long-distance bills. Another 4 percent were paying utility bills that way. Yankee also said that overall, about 13 percent of consumers are paying at least one bill via an online channel.
Meanwhile, MasterCard research indicates that consumers who are paying over the Web prefer to pay all their bills from a single location. MasterCard's Remote Payment and Presentment Service said the reasons they like one location better is that it gives them control over their finances and saves them time and money for stamps, envelopes and checks. Consumers also said they like being able to access payment histories easily. The survey also found that the level of interest among respondents not paying online rose substantially following a step-by-step demonstration of the process.
Copyright © 2003 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 6, 8/03
First published on 08/01/2003