CKFR Checkfree Corp (MM)

CheckFree Survey With the Marketing Workshop, Inc. and Harris Interactive Shows Customers Are More Satisfied at Sites Where They Can View and Pay Multiple Bills Online -- Next Wave of Online Bill Payment Subscribers Want Financial Control, Are Unhappy with Current Paper Process -- ATLANTA, May 18 /PRNewswire-FirstCall/ -- CheckFree Corporation today announced the results of a survey conducted by The Marketing Workshop, Inc. and Harris Interactive that concluded the most satisfied customers are those who use a "consolidated" electronic billing and payment service, where they can pay multiple bills, including electronic bills, from a single site. These consumers were more favorably disposed toward the companies that offered these types of services than the satisfaction levels of consumers paying bills one at a time at different "biller direct" sites. In fact, more than 50 percent of those who paid multiple bills from one site indicated that they were, as a result, less likely to switch to another financial institution. The survey found that consolidated site users believe they are better able to manage and organize their finances, appreciate reminders that help them protect their credit scores by paying on time, and that the sites save time and hassle. The Marketing Workshop/Harris Interactive survey of 2,000 consumers, sponsored by CheckFree, was representative of the online population of approximately 65 million consumer households in the United States. The study also identified the next group of potential subscribers and their characteristics, more than half of whom have already tried paying one or more bills from a biller direct site. CheckFree Analytic Research Services is focused on sponsoring primary and secondary research as a value-added part of its relationship with its business customers, to help ensure the success of their programs by providing market leading expertise. CheckFree conducts research year-round to plan future product innovations, and to fully understand consumer wants and needs. "As mainstream consumers continue to adopt personal electronic commerce, the consolidated model of electronic billing and payment is proving to be a winner for consumers, billers and financial institutions. Consumers who use these services report a more satisfying experience overall when they can receive electronic bills and make payments to anyone from one site," said Steve Olsen, executive vice president and general manager, Electronic Commerce division, CheckFree. "At the same time, these financial services sites retain valuable customers, and benefit from enhanced overall satisfaction. The next group of mainstream consumers is slightly different from current users, and we have studied the mindset of this group, including the benefits that have the greatest appeal." Consolidation + CheckFree e-Bill(SM) = More Satisfied Customers Consumers have several options when choosing to pay bills online. The consolidated method enables consumers to pay any bill from a single Web site, such as a bank, brokerage, credit union or Internet portal. The survey confirmed that consolidated users are "heavier users" of banking services at financial institutions. A higher percentage of consolidated users have checking, savings and money market accounts, and car, personal/student and home equity loans with these institutions. Consolidated sites increasingly offer the ability to receive electronic bills online at their financial services site. Customer satisfaction with both the financial institution and the online banking service was even stronger among consumers who were accessing live, data-fed e-Bills sent by their biller to the financial site to view and pay. * 62 percent of consolidated users with e-Bill are satisfied with their online banking services, a 15 percent increase over those who do not use the consolidated service. * 67 percent of consumers who receive e-Bills rated themselves as "very satisfied" paying bills via the consolidated method, a 23 percent increase over those who pay bills at biller direct sites. Why do Consumers Choose an Electronic Billing and Payment Service? The Marketing Workshop/Harris Interactive survey examined the reasons people choose to receive and pay e-Bills at a consolidated site and determined that the leading benefits are: * Time savings -- 85 percent said that they save time. Saving time was also cited as the primary reason for receiving and paying e-Bills at one site. * Convenience -- 83 percent indicated that it is more convenient to receive e-Bills than paper bills. * Credit rating protection -- 78 percent stated that email notifications remind them to pay the bill online, which helps protect a consumer's credit score. * Improved organization -- 75 percent said that paying from one site helps them to organize their bill payments. Identifying the Next Wave of Users Today, CheckFree helps more than 13 million consumers pay bills online from more than 1,200 sites, and delivered 22.5 million e-Bills in its most recent fiscal quarter. The market is continuing to grow, with TowerGroup reporting that online banking and electronic billing and payment will increase rapidly at rates averaging 15 to 40 percent from 2003 through 2007. This growth indicates that many consumers will consolidate their bill viewing and payment behavior as part of online banking. According to The Marketing Workshop/Harris Interactive, the "Next Wave" of consumers are those who have indicated a high likelihood of subscribing to an online bill payment service within the next year. Characteristics of the Next Wave include: * Seeking to take control of their finances -- 71 percent say they hate to feel behind when paying bills. * Sick of buying stamps -- 60 percent don't like purchasing stamps. * Already using biller direct -- 50 percent of the Next Wave have tried paying bills online by first paying a bill using one or more individual biller Web sites. * Wanting to eliminate hassle -- 45 percent of the Next Wave say they sometimes forget due dates, and 45 percent do not like writing checks to the same companies each month. * Dissatisfied with current bill payment process -- Only 44 percent of the Next Wave are "satisfied" with the way they currently pay bills. About CheckFree ( http://www.checkfreecorp.com/ ) CheckFree (NASDAQ:CKFR) is the leading provider of financial electronic commerce services and products. Founded in 1981 and celebrating its 23rd year in e-commerce, CheckFree is comprised of three divisions: Electronic Commerce, Software, and Investment Services. CheckFree launched the first fully integrated electronic billing and payment solution in 1997. In the quarter ended March 31, 2004, more than 13 million consumers initiated online payments through services offered by CheckFree's Electronic Commerce division. Electronic billing and payment is available through more than a thousand financial services organizations, including banks, brokerage firms, Internet portals and personal financial management (PFM) software. At these sites, consumers are able to electronically receive and pay essentially all the bills most common to a U.S. household. CheckFree delivers 22.5 million e-bills each quarter. CheckFree Investment Services provides a broad range of investment management services to thousands of financial institutions nationwide. The division's clients manage nearly 1.5 million portfolios totaling more than $900 billion in assets. CheckFree's Software division provides solutions through three operating units: CheckFree ACH Solutions, CheckFree Financial and Compliance Solutions (CFACS), and CheckFree i-Solutions. CheckFree ACH Solutions provides software and services that are used to process more than two-thirds of the nation's nine billion Automated Clearing House payments, while CFACS provides reconciliation, financial messaging, workflow and compliance software and services to more than 600 organizations in the banking, brokerage, investment management, insurance and credit card industries, among others. CheckFree i-Solutions is the leading provider of e- billing and e-statement software and services for both business-to-consumer and business-to-business applications. Certain of CheckFree'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 CheckFree's business, and other risks and uncertainties detailed from time to time in CheckFree's periodic reports filed with the Securities and Exchange Commission, including CheckFree's Annual Report on Form 10-K for the year ended June 30, 2003 (filed September 15, 2003), Quarterly Report on Form 10-Q for the quarter ended September 30, 2003 (filed November 13, 2003), Quarterly Report on Form 10-Q for the quarter ended December 31, 2003 (filed February 12, 2004), and Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 (filed May 14, 2004). One or more of these factors have affected, and could in the future affect CheckFree'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 CheckFree, or any other person, that the objectives and plans of CheckFree will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and CheckFree assumes no obligation to update any forward-looking statements. DATASOURCE: CheckFree Corporation CONTACT: Media, Judy DeRango Wicks, +1-678-375-1595, or , or Investors, Tina Moore, +1-678-375-1278, or , both of CheckFree Corporation Web site: http://www.checkfreecorp.com/ Company News On-Call: http://www.prnewswire.com/comp/821650.html

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