This publication has been discontinued on July 19, 2011.
Abstract
Old Habits Die Hard
Convincing consumers to adopt online bill pay and electronic bill presentment and payment (EBPP) solutions is the foremost challenge for participants in this market. This is a tough task because for decades consumers have received paper statements and mailed their checks to pay bills. However, market adoption of online bill pay and EBPP solutions is likely to increase once aggregators (banks and financial institutions), direct billers, other vendors, and consumers are convinced about the cost and time savings that arise due to these solutions. Currently, no direct biller or financial institution controls more than 30 percent of customers using electronic/online billing solutions. In fact, this provides a huge opportunity for billing solution providers to quickly increase revenue by focusing on existing customer base as well as potential users.
This strategic analysis service (SAS) from Frost & Sullivan presents a critical evaluation on adoption of electronic/online billing solutions in the United States. It studies two individual billing solution markets-online bill pay and EBPP-and their participants that includes: aggregators (mainly financial institutions that allow customers to pay bills online) and direct billers (product/service providers that allow customers to pay online for goods/services rendered).
Growing Internet Access to Drive Market Adoption of Electronic Billing Solutions
Significant growth in Internet access is likely to encourage the use of online bill pay and EBPP solutions in the coming years. "By 2010, more than 50 percent of the bills are expected to be paid electronically, which is an enormous increase from the current estimate of 10 percent," says the analyst.
"Rising instances of accessing the Internet through wireless applications such as mobile phones and laptops is likely to be the key reason behind such prolific growth," adds the analyst. Time is another critical market driver. Internet-savvy young Americans prefer to pay their bills electronically so that they save valuable time, and in some cases, money too.
Electronic Billing Solution Providers Need to Keep an Eye on Average Price per Transaction
Vendors of EBPP and online bill pay solutions have witnessed steady revenue growth in the past few years and this trend is expected to continue in the future. However, they have to keep an eye on the widening gap in the growth of electronic transactions and the corresponding revenue.
"Both e-Bill presentment and electronic transactions are growing at over 40 percent annually whereas billing solution vendors' revenue is increasing merely by 15 percent," says the analyst. This creates a market environment where average prices are rapidly decreasing. However, vendors can resort to automation to overcome this challenge and achieve economies of scale.
Table of Contents
- U.S. ONLINE BILL PAY AND ELECTRONIC BILL PRESENTMENT & PAYMENT MARKET
ANALYSIS
- Introduction
- Report Title Page
- EBPP Report Disclaimer
- Certification
- Research Methods
- Market Overview
- Key Definitions
- Key Findings
- Drivers & Restraints
- Direct Biller Market Drivers and Restraints
- Aggregators and Financial Institution Market Drivers and
Restraints
- Market Size and Share
- EBPP and Online Bill Pay Overall Market Size and Share
- EBPP and Online Bill Pay Market Size and Share by Revenues
- EBPP and Online Bill Pay Market Size and Share by Transactions
- EBPP and Online Bill Pay Market Size and Share by eBills
- Analysis of CheckFree's Transaction Based Revenue
- CheckFree Transaction analysis for Last Nine Quarters
- Market Share and Size for Active Subscribers in 2002
- Active Online Bill Pay Subscribers for Top Two Vendors
- Explosive EBPP and Online Bill Pay Growth for Quarters Ending
September 01 thru September 03
- Market Forecasts
- Online Bill Pay & EBPP Forecast Methodology
- EBPP and Online Bill Pay Revenue Forecast
- EBPP Forecast by Transaction
- EBPP Forecast for eBills
- EBPP Subscriber Forecast
- EBPP and Online Bill Pay Impact of Revenue and Transaction
Forecasts on Average Price
- Forecast of Internet and Mobile Internet users along with
Population
- Internet Use by Percent of Total U.S. Population
- Forecast of Population and Internet users along with Active Online
Bill Payers
- Future Bills and eBills along with Online Bill Payments
- End User Analysis and ROI Calculations
- End User Overview of EBPP Drivers and Restraints
- End User Analysis of the Current Potential Market
- Three Key factors Neccesary for Online Bill Pay
- ROI for End Users Critical Factors
- End User ROI Model
- Projections of Annual Savings for Online Bill Pay Users
- Interest is a Key Determinate of Consumer Incentive to use Online
Bill Pay
- Conclusions from Consumer ROI Model Analysis
- The Impact of Interest Rates on Consumer Annual Savings with
Online Bill Pay
- Consumer ROI Model Adoption Conclusions
- Critical Relationships Necessary for Consumer ROI
- The Impact of Wealth and Market Strategy on Consumer use of EBPP
or Online Bill Pay
- End User Analysis of the U.S. Mail
- DST Systems is a Good Example of the Evolution from Paper to
Digital
- Financial Institution Case Study and ROI
- Case Study of Bank of America
- Executive Quote from Representative of Bank of America
- Bank of America Statements about Online Bill Pay
- Relationship Growth between CheckFree and Bank of America
- Annual Cost of Software License and Maintenance of Online Bill Pay
Solution for Bank of America from CheckFree
- Bank of America Subscriber Growth has Driven CheckFrees Total
Subscriber Growth
- ROI Implementation Calculation for Aggregators/ Financial
Institutions
- Bank of America ROI Calculations
- Financial Institutions Further Analysis of ROI
- Unique Opportunity for Financial Institutions with Credit Card
Business lines and Online Bill Pay Capabilities
- Direct Biller Case Studies and ROI
- Direct Biller Case Study of Metavante and Alagasco Overview
- Direct Bill ROI Calculations for Case Study of Metavante and
Alagasco
- Key Factors of Demand Analysis for EBPP by Direct Billers
- ROI Implementation Calculations for Direct Billers
- Importance of eBills for Direct Billers
- Importance of Online Bill Pay for Direct Billers
- Charter Communications Direct Biller Case Study
- Charter Communications Executive Quote
- CSG Systems Executive Quote
- Market Participant Profiles
- Profile of CheckFree
- CheckFree Executive Quote
- CheckFree CEO Quote
- Profile of Metavante
- Metavante Executive Quote
- Profile of Yodlee
- Board Member Quote from Yodlee
- Profile of Princeton eCom
- Profile CSG Systems
- Profile of DST Systems
- Profile of edocs
- CEO Quote by edocs
- Executive Quote by edocs
- Market Strategies and Overall Conclusions
- The Impact of EBPP on the Contact Center Industry
- EBPP and Online Bill Pay Overall Market Conclusions and General
Future Outlook
- Future Drivers of EBPP and Online Bill Pay
- Strategies for Financial Institutions
- Strategies for Consumers
- Strategies for Direct Billers
- EBPP and Online Bill Pay: Winners and Losers
- Market Awards
- Frost & Sullivan Awards for the Online Bill Pay and EBPP
Market
- EBPP and Online Bill Pay Market Leadership Award
- EBPP and Online Bill Pay Market Strategy Award
- EBPP and Online Bill Pay Vertical Market Strategy Award
- EBPP and Online Bill Pay Customer Value Enhancement Award
