18 February 2018
visit www.nextgenbanking.co.uk/

US online bill payment to penetrate 63 million homes by 2014 - Forrester

16 June 2009  |  7422 views  |  0 keyboard 2

The number of US households paying bills online will grow from 48 million this year to 63 million by 2014, driven by consolidator sites like Yodlee, according to Forrester Research.

Forrester says that while the 5.4% compound annual growth rate is slowing, the market is still far from saturated.

The firm foresees a shift in the market as more consumers turn to banks and bill payment consolidators like Yodlee and Corillian. This will be driven by several factors, including the convenience of having multiple bills aggregated at a single Web site and the elimination of fees.

By 2012, consolidators' share of the online bill payment market will surpass direct billing by merchants for the first time, says Forrester.

Young consumers - who so far have shown less interest in using aggregators such as banks - will be a key battleground among financial services firms as the market matures.

Edward Kountz, senior analyst, Forrester, says: "To strengthen their position and better support these customers, banks need to add more payment options, deploy online and mobile alerts with greater visibility, and continue to hammer home the message that online bill payment is free."

A study earlier this year from fintech vendor Fiserv found that bank customers who pay bills online are over 15% more profitable and 76% more loyal than those that don't.

However, the provision of free online bill payment services to retail banking customers is also expensive, and will cost the US financial services industry $1 billion by 2010, according to research published by TowerGroup last August.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Online banking bill payers are more profitable and loyal - study

Online banking bill payers are more profitable and loyal - study

02 April 2009  |  12824 views  |  1 comments
Online bill pay to cost US banks $1bn by 2010 - TowerGroup

Online bill pay to cost US banks $1bn by 2010 - TowerGroup

27 August 2008  |  11037 views  |  0 comments
Yodlee raises $35m funding

Yodlee raises $35m funding

04 June 2008  |  9281 views  |  0 comments
A&L sees soaring e-bill payments

A&L sees soaring e-bill payments

29 January 2008  |  4099 views  |  0 comments
Online bill payment key to customer satisfaction

Online bill payment key to customer satisfaction

17 April 2007  |  10355 views  |  0 comments
US consumers switching to automated bill payment

US consumers switching to automated bill payment

25 October 2005  |  5112 views  |  0 comments
Consumers gravitating to bank Web sites for bill payments

Consumers gravitating to bank Web sites for bill payments

28 April 2004  |  3717 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comvisit www.swift.com/your-needs/instant-paymentsVisit www.vasco.com

Who is commenting?

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
10468 views comments | 16 tweets | 11 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8256 views comments | 15 tweets | 41 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
7744 views 10 comments | 21 tweets | 26 linkedin
hands typing furiouslyHow can Blockchain Help with AML KYC
7617 views 3 | 9 tweets | 4 linkedin

Featured job

Basic c.£90K OTE c.£180K plus full benefits pac...
London based

Find your next job