Online Banking Bill Payments: A Vendor Performance Update
Report Summary
Online Banking Bill Payments: A Vendor Performance Update
While online bill payment via bank Web sites is gaining wider adoption, growth is slowing markedly. It’s time for vendors to get serious about innovation.
Boston, MA, October 12, 2009 – A new report from Aite Group, LLC assesses the performance of leading U.S. online banking bill payment processing vendors - aka consolidator processors - from 2006 to the first half of 2009. Based on data collected by Aite Group from four leading vendors between July and September 2009, the report provides a picture of the level of performance achieved by leading processors, scoring them on 21 key performance indicators.
Online banking bill payment continues to gain wider adoption among consumers and small businesses, but the growth rate is slowing. Emerging products, such as expedited bill payment via the consolidator channel and small-business-specific bill payment solutions, are growing at a faster rate than overall consolidator volumes. Despite this, no vendor has yet managed to make emerging products a large portion of its business.
"Because of the limited gains consolidator processors have been able to achieve in key areas, including the removal of paper from the entire process, the industry remains exposed to disruptive business models and/or technologies," says Gwenn Bézard, research director with Aite Group and author of this report. "With transaction growth slowing and financial institutions making it a top priority to renegotiate deals with existing vendors to get better terms, it's time that processors get serious about innovation."
The report evaluates four consolidator processors: Fidelity Information Services' Metavante, Fiserv, iPay Technologies and Online Resources, and contains extensive information on MasterCard RPPS.
This 55-page Impact Report contains 61 figures. Clients of Aite Group's Retail Banking and Wholesale Banking services can download the report.