Sizing Same-Day Bill Payments Among Alternative Financial Services Customers
Report Summary
Sizing Same-Day Bill Payments Among Alternative Financial Services Customers
Aite Group estimates that alternative financial services customers generated nearly US$2.3 billion in 2010 same-day bill pay fees.
Boston, June 25, 2012 – A new report from Aite Group estimates the same-day bill pay opportunity among alternative financial services customers, profiles the best candidates for the service among this population, and discusses strategies for capitalizing on the opportunity. It is based on a Q1 2011 Aite Group survey of 500 U.S. consumers who use alternative financial services.
In an effort to recoup the costs of providing electronic bill payment and presentment, many financial institutions and billers offer consumers “same-day” (or “expedited”) bill pay. For a fee—typically US$10 per payment—a biller or bank will accept or deliver a payment from a consumer and ensure the payment is credited no later than the next business day. With 80% of alternative financial services customers making at least one same-day bill payment in 2010, and one in three doing so at least once a month, Aite Group estimates that alternative financial services customers generated nearly US$2.3 billion in 2010 same-day bill pay fees.
“Banks, billers, and prepaid card issuers all have an opportunity to market same-day bill pay,” says Ron Shevlin, senior analyst with Aite Group and co-author of this report. “An understanding of the same-day bill payer’s demographic and product behavior will make a difference in how much available revenue each of these entities can capture."
This 15-page Impact Note contains nine figures and three tables. Clients of Aite Group’s Retail Banking service can download the report.