Electronic Bill Pay and Presentment: Take a Number; a Consumer Will Be Right with You (Maybe) published by Mercator Advisory Group, Inc. in December, 2009. This report consists of 40 pages, 19 exhibits. and the price starts from US $ 2950.
Abstract
The EBPP market in the United States is striking by the persistent challenge
it presents to target a consumer audience whose bill payment preferences
regularly shift between services. While financial institution consolidators
appear to be making headway, direct billers are holding their own, and
in-store money centers are emerging in the market to grab a share of these
transactions. Consumer uptake of e-billing is encouraging, but the motivation
to standardize the underpinnings doesn't appear to be taking shape in a market
where solution providers are actively consolidating.
Historically, the primary EBPP market segments (i.e., FI-consolidators and
direct billers) offer services that are rationalized to the consumer under
opposing value propositions with one common goal - to incent consumers to
manage their payments electronically. Our research indicates that this market
still has plenty of room to grow and indeed, offers these service providers,
particularly the FI-consolidators, the opportunity to elevate the value of
their service to the consumer market.
Mercator Advisory Group's the Electronic Bill Pay and Presentment: Take a
Number; A Consumer Will Be Right With You (Maybe) report examines this
market from the consumer, financial institution, and direct biller
perspectives - including a look at how in-store money centers are muscling in
on the perennial industry feud between traditional delivery types. We also
review the primary solution providers, including new products being launched,
and the opportunity for outsourcing in an increasingly complex market.
“In the bill payment industry, as in most of the financial services
industry today, the market is actively segmenting itself into distinct
solution sets that address the needs of a more granular (and arguably
demanding) consumer market than it has in the past. The entry of potentially
transformative organizations into the financial services industry, such as
Wal-Mart, may serve to siphon off online bill pay users from both direct
billers and consolidator sites alike. ,” Patricia Hewitt,
Director of Mercator Advisory Group's Debit Advisory Service comments.
Highlights of this report include:
- EBPP is growing, but the market is by no means a lock for any given
service provider.
- Consumers continue to choose a variety of bill payment methods making a
“one size fits all” solution difficult to deliver.
- A key component for building market share may be a reframing of the bill
payment experience as one component of an online personal financial management
(PFM) toolset.
- Non-traditional financial services providers, ala WalMart Money Centers,
continue to make inroads into the traditional financial institution space.
- E-billing appears to be of sustained value to consumers and consolidation
of billing service providers may serve to encourage adoption by delivering on
economies of scale and ease of implementation.
One of 19 exhibits in this report:
This report is 40 pages long and has 19 exhibits.
Companies mentioned in this report include: Fiserv, Metavante, Yodlee,
Jack Henry, Online Resources Corp., iPay, Western Union, Money Gram, WalMart,
NACHA.
Table of Contents
Introduction
In The Beginning
- It' s Good to Be a Bill
- Competitive Landscape
- How I Pay My Bills
- The gTalkingh Part
- The gDoingh Component
What' s the Target?
- Refining the Target: The Check is still in the Mail
- The Opportunity in Personal Services
- The Flip Side of Check Writing
- Consumer Payment Automation (CPA)
- Biller Service Providers (BSP)
- It' s Not Just $ and µ
How Can I Serve You?
- Consolidators Consolidating
- How Even is the Playing Field?
- The In-Store Effect
- Co-Opting
Hubs and Wheels and Spokes
- Fiserv
- Metavante
- Online Resources Corporation
- iPay Technologies
- ' P' is for Presentment
EBPP or EPFM?
TABLE OF FIGURES
- Figure 1 Bill Payment Market Topography
- Figure 2 Where Consumers Pay Their Bills
- Figure 3 Consumer Bill Payment Preferences
- Figure 4 USPS Household Diary Study, Bill Payment Method, 2007
- Figure 5 Consumer Bill Pay Survey Comparisons
- Figure 6 Check Volumes and Distribution, 2001 vs. 2006
- Figure 7 Estimated Cost of Getting Paid
- Figure 8 Topography of a Biller Direct Solution
- Figure 9 Consumer Bill Pay Industry Consolidation
- Figure 10 Top Rated, Consumer Reviewed Online Consolidator Bill Pay
Services
- Figure 11 Top Rated Consolidator Solution Providers (U.S. Only)
- Figure 12 Fee-Based vs. Free Bill Pay Consolidator Model
- Figure 13 Online Bill Pay Site Traffic
- Figure 14 Non-bank Bill Payment Channels Evolution
- Figure 15 Rationalizing a Bank-Offered P-to-P Solution
- Figure 16 Metavante Solution for New Online Bill Pay Users
- Figure 17 Five Year Net Present Value of Online/E-Bill Users
- Figure 18 How EBIDS Works
- Figure 19 Evolution of Bank and Consumer EBPP Relationship
