A study conducted by TowerGroup on consumer-orientated electronic bill presentment and payment (EBPP) reports that US billers could save $5.5 billion from a conversion from paper-based transactions to EBPP.
Research tracking current investments in the US billing and payments process estimates that current annual expenditures for billing and bill payment total $86 billion across banks, billers, third-party vendors, consumers and the US Postal Service.
The report claims banks and third party vendors have the greatest potential to generate new revenue, projecting that banks could add $7 billion in new revenue with full conversion to EBPP, while third party vendors could generate an additional $15.7 billion.
Beth Robertson, TowerGroup, who conducted the research says biller migration to EBPP has begun to accelerate over the last year, as technologies to support electronic delivery have reached greater maturity.
She predicts consumer interest in EBPP will build as a wider variety of bills are available online and says banks can build on their current customer and transaction processing franchises to recognize considerable new revenue and retention opportunities.