Online Bill Payment
There is an average of 14.9 bills paid annually in the United States, and 56% of those bills were paid online in 2017. It appears that younger generations are more likely to pay their bills online, with 61% of millenials paying their bills online, and seniors paying only 42% of their bills online.
Biller websites are gaining the upper-hand
Seniors and millenials alike are more likely to use a biller's website to pay their bills online. In 2016, 72% of bills were paid online, with only 32% being recurring payments and 68% of online bill payers electing to keep their payments as one-time transactions. Of those online transactions, 78% of millenials made their payments on biller websites and seniors made 60% of their online payments using biller websites. Only 27% of online bill payment were made through bill pay services provided by banking websites and apps.
* It is easier for consumers to miss their bill payments when they don't have the physical reminder of a mailed statement.
* Slightly different password requirements across websites require consumers to alter the password they typically use, making them more likely to forget their password and having to use the "password reset" function before they can access their account and pay their bill.
* Paying bills online often results in customers having less access to previous statements, and even at times have to pay a fee to access a statement they may need for tax purposes.
* Misreading an online statement of a simple typo involving decimal point placement can result in over or underpaying bills.
* Paying bills online makes customers vulnerable to hackers accessing their bank information.
accelerating the adoption of online bill payment
* 70% of people who choose to sign up for online bill payment services choose to do so within 30 days of opening their account.
* It is critical to engage customers and educate them about online bill pay services within the first 90 days, using varying different methods to inform of the service and educate about the benefits of paying bills online.
* To maximize the potential of online bill pay subscribers, it is essential to educate front-line staff about the program security and benefits. This will allow customers who are "on the fence" to call and get their questions about security answered directly, and the staff member they are speaking to can remind them of the benefits involved with paying their bills online.
* Offer incentives to customers when they set up a recurring payment, make their first online payment, or reactivate their online account.
Online bill payment is on the rise, and most customers are choosing to pay bills on a biller's website than use bill pay services provided by banks, but there is still room for improvement. By using marketing strategies early on, educating front-line staff on the benefits and security of online bill payment, and offering incentives business would likely see a rise in customers who pay their bills online.