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Editorial Viewpoint Staying a Step Ahead of the Revolution |
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Spotlight On iPay Technologies, LLC |
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Spotlight On American Credit Alliance |
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NEWS REPORT New MasterCard RPPS Reports Deliver Focused ... |
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NEWS REPORT MasterCard RPPS's Value-Loading Network Helps... |
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NEWS REPORT Survey Reveals Importance of Online Bill Payment to... |
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NEWS REPORT Customers Value RPPS Update, Survey Says |
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NEWS REPORT Online Biller/Creditor Directory Enhancements... |
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INDUSTRY INSIGHTS Q and A With Aaron McPherson |
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NEWS REPORT 
Survey Reveals Importance of Online Bill Payment to Consumers |
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| Convenience, Control, and Security Draw Consumers to Financial Institutions' Bill Payment Websites | ||||
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A new Harris Interactive® survey sponsored by MasterCard RPPS shows that consumers are finding valuable advantages to online bill payment services offered at their financial institution's website. The study's findings offer evidence that an increasing number of consumers are paying their bills online through their financial institution's website not only for the convenience of paying all their bills in one place, but also for the benefit of complete, one-stop financial management. Also important is the peace of mind consumers enjoy in dealing with an institution with which they already have a trusted relationship. “We commissioned this study as part of our ongoing effort to better understand consumer attitudes and behaviors regarding online bill payment, so that we and our participants can better design and market online payment services,” says Jennifer Covello, MasterCard RPPS. “Consumers recognize that paying bills online frees them from time-intensive paper-based methods, and for those who use other online channels, their financial institution's online bill payment service saves them from the hassle of going to individual sites,” she adds. Why consumers pay bills online More than one-third of respondents (37%) currently pay at least one of their bills online—a clear indication that online bill payment is nearing mainstream status—with 41% of these paying bills through their financial institution's website. Consumers cited seven primary reasons for paying bills online at their institution's website:
Nearly three-quarters of respondents (73%) use their financial institution's website because they can take care of all of their banking needs—viewing accounts, transferring funds, paying bills, etc.—in one place. In this context, online bill payment achieves the status of a financial management tool. Other motivating factors include
Incentives play an important role in getting consumers to try online bill payment at their financial institution's website. Nearly two-thirds of users (62%) were offered an incentive, with 87% receiving a promise that the service would remain free of charge, a particularly attractive feature. Why consumers don't pay bills online The primary barrier to paying bills online, cited by 50% of respondents, is concern about the security of personal financial information. The next four most frequently cited reasons reveal consumer misunderstanding about online bill payment:
The good news is that all of the barriers can be effectively addressed through focused educational efforts. What bills are paid online Credit card bills (72%) are the type most frequently paid through a financial institution's website. These are followed by utilities (66%), phone/cellular service (65%), cable/ISP (53%), insurance (47%), and mortgage (33%). Interestingly, women are more likely than men to pay most of these types of bills with this method. What consumers get online “The study clearly supports the MasterCard RPPS belief that the ability to pay bills at a financial institution's website is the optimal solution because it simplifies the lives of busy consumers, especially those with diverse banking needs,” says Covello. Of particular note, 44% of respondents who use this method maintain that they would change financial institutions if their current institution stopped offering the service,” she notes. “Clearly, many see the service as an integral component of their financial management and a critical facet of their banking relationship. That's great news.” About the Harris Interactive Survey Harris Interactive conducted the ninequestion QuickQuerySM online survey within the United States from Feb. 27, 2004, through March 2, 2004, interviewing a nationwide cross-section of 2,233 adults ages 18 and older. Figures for age, gender, race, education, region, and income were weighted where necessary to bring them in line with their actual proportions in the online population.  | ||||
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