+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

U.S. Bill Pay Market: Can Financial Institutions Win Back Payers?

  • ID: 5238669
  • Report
  • January 2021
  • Region: United States
  • 14 Pages
  • Mercator Advisory Group
The U.S. Bill Pay Market Will Edge Closer to $4 Trillion in Annual Processed Volume.

FEATURED COMPANIES

  • ACI
  • Early Warning
  • FIS
  • Fiserv
  • Mastercard
  • The Clearing House

Consumers’ demands and expectations for bill pay created the shift towards digital interfaces and also an expectation around a choice of payments and greater transparency regarding payment status. Their expectations are often better met through biller solutions, not banking platforms. With improved technology for financial institutions, there is an opportunity to bring consumer bill payers back and provide enhanced convenience through a single, consolidated tool, as covered in a new report titled U.S. Bill Pay Market: Can Financial Institutions Win Back Payers?

”More modern options for bank bill pay that include better notifications and payment choice will help to bring consumers back to financial institutions’ bill pay platforms. Bill pay is a critical component to securing consumers’ preferred financial institution status. But I don’t expect that consumers will return to their financial institution to pay bills at same level experienced 10 to 15 years ago. Consumers have created the habit of paying directly with billers and the way that consumers establish services today, including the rise of the subscription model, supports more direct-to-biller activity,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service and author of the report.




Highlights of the report include:


  • Review of the payment methods and channels that consumers are using today to pay bills
  • Estimates and forecast for bill pay activity by paper, card and other electronic methods
  • The impact of COVID-19 on bill pay
  • Discussion of the gap between payments used to pay bills and the payment types consumers prefer
  • Payment methods in the subscription based model
  • Consolidation of fintech bill pay solution providers by processors
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • ACI
  • Early Warning
  • FIS
  • Fiserv
  • Mastercard
  • The Clearing House


1. Executive Summary2. Introduction
3. The U.S. Bill Pay Market Edges Closer to $4 Trillion
  • COVID-19 and bill payments


4. Payment Choice can be a Matter of Necessity, not Preference
  • Real-time payments are beginning to be added as yet another payment option


5. The Financial Institution vs. Biller Environment6. The Way Consumers Buy Services Shifts Payments towards the Biller7. What Payment Providers are Doing8. Conclusion
9. References
  • Endnotes


Figures and Tables
Figure 1: Consumers are equally likely to use automatic bill pay methods as digital payment
Figure 2: Estimated and forecasted bill pay transactions by payment type
Figure 3: Estimated and forecasted bill pay dollar volumes by payment type
Figure 4: Consumers anticipate that they will struggle to make critical bill payments.
Figure 5: There is a stark difference between how consumers pay bills and how they would prefer to pay
Figure 6: Card payments directly with the biller are by far the preferred payment mechanism for digital, subscription services
Note: Product cover images may vary from those shown

Loading
LOADING...

  • ACI
  • Early Warning
  • FIS
  • Fiserv
  • Mastercard
  • The Clearing House
Note: Product cover images may vary from those shown