2007 Consumer Bill Payment Trends Survey: Volume of Electronic Bill
Payments Reach 39%; Check Bill Payments Decline to 34% ATLANTA,
April 12 /PRNewswire-FirstCall/ -- For the first time, consumers in
Internet-connected households are paying more of their bills online
than by paper check, according to a new study conducted by Harris
Interactive and the Marketing Workshop. (Photo:
http://www.newscom.com/cgi-bin/prnh/20070412/CLTH008 ) The 2007
Consumer Bill Payment Survey showed that, for the first time,
online bill payments exceeded bill payments made by paper check
among online households. Online payments made up 39 percent of the
total volume of bill payments among online households, an increase
of 4 percent over the previous December 2005 survey. In contrast,
the volume of checks sent through the mail fell 4 percent to 34
percent of the overall volume. The Consumer Bill Payment Survey -
the seventh conducted since 2002 and sponsored by CheckFree
Corporation (NASDAQ:CKFR) - highlights consumers' growing use of
online banking and electronic billing and payment services to help
them manage their household finances. The January 2007 survey
polled 2,018 online respondents who were at least partly
responsible for household bill payments. Respondents are
representative of the estimated 82.5 million U.S. households using
the Internet, and the margin of error is plus or minus 2 percent.
The survey findings include: -- A growing number of consumers are
turning to their computers, rather than their checkbooks, to pay
household bills. -- Paying bills online has become a mainstream
activity among U.S. households. -- Western states, followed by the
South, have embraced online bill payment faster than other regions,
which may be driven in part by higher broadband penetration rates
and online banking use in these regions. -- Paperless bills appear
to be catching on as consumers recognize their convenience,
security and environmental benefits. "The fact that online bill
payment has overtaken paper checks shows that people feel secure
managing their finances online," said Gwenn Bezard, research
director with Aite Group. "Once considered a nice-to-have add-on,
online bill payment is now the foundation of the Web banking user
experience. I expect further growth in this area due to Generation
Y's greater reliance on technology in their everyday lives as they
move into early adulthood, and the increasing adoption of
electronic bills, especially as the environment becomes a
mainstream issue." West Leads Nation in Online Bill Payment,
Followed by the South Nationwide, consumers paying at least one
bill online per month rose to 74 percent, compared to 69 percent of
respondents in the previous December 2005 survey. Consumer adoption
of online bill payment has more than doubled since January 2002,
when only 37 percent of online households reported paying at least
one bill online. The West ranks first in overall adoption of
electronic billing and payment, with 78 percent of online
households paying their bills online, according to the survey. The
South ranks second, with 76 percent. The Northeast ranked third in
online bill payment, with 72 percent, and the Midwest trailed, with
71 percent. Factors helping drive regional differences included
higher broadband penetration rates, greater online banking use and
technology-savvy populations in the West and South. In the West, 80
percent of surveyed households receive their Internet service
through a broadband connection and 83 percent use online banking to
check their account activity or transfer funds. By contrast, the
Midwest, which trailed in EBP adoption, 70 percent of households
have broadband Internet connections and 76 percent use online
banking, according to the survey. Consumers in Western states also
were more likely to pay bills at online banking sites (42 percent),
than those in the South (38 percent), Northeast (37 percent) and
Midwest (33 percent). Among the survey's six consumer bill-payer
personality segments, there were more E-Savvy Planners living in
the West (11 percent) and South (15 percent) than in other regions.
This consumer segment enjoys trying the latest technology products
and using financial management tools to organize their finances.
E-Savvy Planners pay bills online because it's safer than mailing a
check, they regularly check their credit reports and are more
likely to use online banking (94 percent) and online bill payment
(91 percent) services than other consumer segments. For more
information on the six types of consumer bill payers, visit
http://www.ebillplace.com/. Rising Postal Rates Encouraging
Consumers to Switch to Online Bill Payment American consumers
increasingly rely on online bill payment services to save time.
Eighty-five percent of survey respondents said, "paying bills
online is faster." But the rising cost of mailing paper checks to
pay bills also may be helping fuel the trend. Some 85 percent of
consumers surveyed said, "paying bills online saves the paper,
stamps and the hassle of paying bills by check." A first-class
stamp cost 37 cents in 2005, compared to the current price of 39
cents. An approved postal rate increase will bring the cost of a
first- class stamp to 41 cents on May 14, 2007. In contrast, the
vast majority of consumers - 93 percent - reported that they get
the online bill payment service for free from their banks or credit
unions. "Electronic bill payment is not only a great way for
consumers to manage their cash flow and ensure on-time payments,
but it is also an often overlooked way to maintain a tidier, more
organized home or home office," said Standolyn Robertson,
president-elect of the National Association of Professional
Organizers (NAPO), and founder of Things in Place, which provides
professional organizing services to residents of the Greater Boston
area. "By opting to receive electronic bills, rather than paper
bills, consumers can reduce or eliminate those stacks of bills near
the front door, on the kitchen table or at their desks, and there
is no bill to misplace or drop behind the couch. By simply signing
up at their local banks or portals, usually for free, consumers can
give themselves the gift of time and the peace of mind that comes
from organization." Convenient, Environmentally Friendly E-Bills
Poised for Adoption Growth Paperless billing seems to be catching
on as consumers become more aware of the environmental benefits of
e-billing. Thirty-nine percent of consumers receiving electronic
bills at bank websites said they no longer receive mailed copies of
the bills. Other key findings related to e-bills included: --
Consumers paying bills at bank websites were more willing to stop
receiving paper bills than those paying directly at biller sites.
Eighty-four percent of e-bill users said they were willing to
consider shutting off receipt of paper bills through the mail if
offered the choice, compared to 69 percent of those paying at
biller sites. -- Fifty-two percent of e-bill users cited "receiving
bills in electronic form saves paper and energy, helping our
nation's environment" as a major reason they chose to receive
e-bills. -- Overall, the most appealing features of e-bills were
convenience, due- date reminders and "assurance that bills are
never late." -- Among the benefits for banks and billing
organizations, consumers using e-bills also reported significantly
greater satisfaction with their banking and biller relationships
and were less likely to switch providers. Some 58 percent of e-bill
users claimed they were less likely to switch banks as a result of
receiving and paying bills through online banking sites, while 39
percent of e-bill users said they were less likely to switch to a
competitor's service. -- Seventy-two percent of e-bill users said
they were satisfied or very satisfied with their online banking
experiences, compared to 52 percent for those who didn't use
e-bills. More satisfaction also translated into word-of-mouth
endorsements. E-bill users were 58 percent more likely to recommend
their banks' online bill payment services to family members and
friends. Online Bill Payment Adoption Climbs The average survey
respondent paid 11.5 bills in a typical month, with approximately
39 percent of these, or 4.5 bills, paid online, and 34 percent, or
3.9 bills, paid by paper check. Consumers who used online banking
sites for paying bills reported paying more bills per month and
paying far more of them online. These consumers paid 8.2 (63
percent) of their 13 monthly bills online, and just 1.6 (12
percent) by paper check. The survey also showed growth in
consumers' use of online banking sites to pay bills. In the latest
survey, 38 percent of survey respondents said they paid at least
one bill per month at an online banking site, compared to 33
percent in the December 2005 survey. An increasing number of online
banking users are activating online bill payment services, further
fueling EBP adoption. Forty-eight percent of online banking
customers pay bills online, compared to 37 percent at the end of
2003. Those who pay bills at online banking websites reported using
more of their banks' financial services overall than non-EBP users,
including automatic teller machines, demand deposit accounts and
loans. Online bill payment customers also tap into more online
banking features such as electronic statements, online account
transfers and check imaging services. Biller Sites Growing Steadily
Meanwhile, consumers' use of biller websites to pay bills continues
to grow, though at a slower rate than in the past. Fifty-five
percent of 2007 survey respondents made a payment directly at a
biller's website, up from 53 percent in the December 2005 survey.
Consumers with household incomes of less than $50,000 were more
likely to pay their bills at biller websites, while higher-income
groups - particularly those earning more than $100,000 - were more
likely to pay their bills at online banking sites. Consumers cited
"faster," "saves paper, stamps and hassle" and "provides more
control over payment timing" as the top three benefits of paying
bills at online banking sites, according to the survey. Non-users
cited "don't know enough" as the leading reason why they don't pay
bills at their banks' websites. Concerns about online security were
cited by only 13 percent of respondents, compared to 20 percent in
the December 2005 survey. CheckFree Electronic Commerce Division
provides electronic billing and payment services that enable more
than 2,000 financial services organizations to achieve their
customer acquisition, retention and optimization goals through
secure online channels. In fiscal 2006, CheckFree processed 1.13
billion transactions and distributed 184.6 million electronic
bills. CheckFree Electronic Commerce solutions include online
integrated personal finance management, online account opening,
funding and transfer; electronic billing and payment for consumers;
electronic invoice presentment, payment and receivables solutions
for small business banking customers; mobile payment solutions;
flexible Web services technology for electronic billing and
payment; and payment fraud detection and prevention. About
CheckFree (http://www.checkfreecorp.com/) Founded in 1981,
CheckFree Corporation (NASDAQ:CKFR) provides financial electronic
commerce services and products to organizations around the world.
CheckFree Electronic Commerce solutions enable thousands of
financial services providers and billers to offer the convenience
of receiving and paying household bills online, via phone or in
person through retail outlets. CheckFree Investment Services
provides a broad range of investment management solutions and
outsourced services to hundreds of financial services
organizations, which manage about $1.7 trillion in assets.
CheckFree Software develops, markets and supports payment
processing solutions that are used by financial institutions to
process more than two-thirds of the 14 billion Automated Clearing
House transactions in the United States, and supports
reconciliation, exception management, risk management, transaction
process management, corporate actions processing, and compliance
within thousands of organizations worldwide. Certain of the
Company's statements in this press release are not purely
historical, and as such are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
These include statements regarding management's intentions, plans,
beliefs, expectations or projections of the future. Forward-looking
statements involve risks and uncertainties, including without
limitation, the various risks inherent in the Company's business,
and other risks and uncertainties detailed from time to time in the
Company's periodic reports filed with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended June 30, 2006 (filed September 8, 2006), Form 10-Q
for the quarter ended September 30, 2006 (filed November 8, 2006)
and Form 10-Q for the quarter ending December 31, 2006 (filed
February 8, 2007). One or more of these factors have affected, and
could in the future affect the Company's business and financial
results in future periods, and could cause actual results to differ
materially from plans and projections. There can be no assurance
that the forward-looking statements made in this press release will
prove to be accurate, and issuance of such forward-looking
statements should not be regarded as a representation by the
Company, or any other person, that the objectives and plans of the
Company will be achieved. All forward-looking statements made in
this press release are based on information presently available to
management, and the Company assumes no obligation to update any
forward-looking statements.
http://www.newscom.com/cgi-bin/prnh/20070412/CLTH008
http://photoarchive.ap.org/ DATASOURCE: CheckFree Corporation
CONTACT: Media, Judy DeRango Wicks, +1-678-375-1595, , or
Investors, Tina Moore, +1-678-375-1278, , both of CheckFree
Corporation Web site: http://www.checkfreecorp.com/
http://www.ebillplace.com/
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