RealTime IT News

Report: Electronic Bill Payment To Grow Rapidly After Year 2000

Most consumers are aware of electronic bill payment and an increasing number are now interacting with businesses electronically, according to a report from Santa Clara, Calif.-based Netroscope, an Internet market research and consulting firm.

However, although 96% of consumers surveyed have heard about electronic bill presentment and payment, only 18% are currently paying some of their bills electronically.

Twenty-seven percent of surveyed consumers said they plan to pay bills electronically within the next 12 months and 34% said they do not plan to pay bills electronically in the foreseeable future.

According to the Netroscope survey, convenience, ease of access, billing information management and retrieval, reduction in late/delinquency rate, and money and time savings are perceived advantages of electronic bill presentment and payment by consumers.

"By carefully evaluating the EBPP approaches, and considering balanced customer, bank and biller perspectives, financial organizations can help minimize risks and maximize opportunities for these three principal constituencies involved in the billing and payment process," said Byron Patra, senior analyst at Netroscope.

"By offering integrated services, tools and financial software, organizations can position themselves to up-sell and cross-sell products in the context of addressing their customers' specific needs..."

"Many roadblocks to EBPP's success exist today," Patra said. "Considering the current adoption rates for billers, banks, and consumers, there will be only a modest increase in EBPP in 1999. However, the advantages of EBPP are so compelling that we anticipate an 'explosive' surge after 2000."

The report titled, "Electronic Bill Payment and Presentment: Real Opportunities and Threats" examines the key factors that contribute to a successful EBPP adoption, identifies potential market opportunities, discusses bill presentment and payment integration approaches, evaluates various technology components, and identifies the missing opportunities for both banks and billers in customer profiling, billing standards, and new services. The study is priced at $495.