Online Bill Payments: Chasing the Next Big Thing
Aite Group reveals that the share of payments made online at banks' or billers' Web sites will rise from 14% in 2006 to 28% by 2010. To grow faster than the market, online bill payment processors will need to continue chasing new bill payment processing o
Boston, MA, October 16, 2006 – In a new report, Online Bill Payments: Chasing the Next Big Thing, Aite Group looks at processors' efforts to tap into new revenue opportunities beyond the core bill payment processing service. The report provides an overview of the payment, channel and revenue trends in consumer bill payment processing and discusses the state of the competitive landscape in the consolidator segment. In addition, the report highlights some of the largest growth opportunities for online bill payment processors that are beyond their core consumer bill payment service, including walk-in bill payment, expedited bill payment, small-business bill payment, and bill presentment.
The report recommends that banks should seize new opportunities for themselves as their processing partners become larger and more diversified companies. "As processors broaden their capabilities and relationships, banks should explore ways to leverage those in order to nurture new opportunities for themselves, such as with the development of products targeting the unbanked," said Gwenn Bézard, a Research Director with Aite Group and the author of the report. The report also argues that instead of shunning them, banks should embrace alternative channels such as e-mail and mobile phones. "Instead of letting billers lead the charge, banks should consider integrating those services into their consolidator model," suggests Bézard.
The vendors mentioned in the report include: AOL, CheckFree/PhoneCharge/APS, ChoicePay, Citibank, Digital Insight, Experian/LowerMyBills.com, Fidelity Information Services/Certegy, Fiserv/BillMatrix/Paytraxx, Fort Knox National, GE Money/CashWorks, iPay Technologies, JPMorgan Chase/PayConnection, MasterCard RPPS, Metavante, NACHA, NCO, Online Resources/Princeton eCom, Striata, Transactis, Visa ePay, Wachovia, Wells Fargo, Western Union/Speedpay, Yahoo!, and Yodlee.
This 32-page Impact Report contains 25 figures. Clients of Aite Group's Retail Banking Service can download the report