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A New Report From Aite Group |
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Boston, MA, September 29, 2008
– A new report from Aite Group, LLC evaluates the opportunity for banks to reach customers via card-based bill payment through online banking.
The report reveals demographic characteristics of those most likely to pay bills with credit and debit cards, and identifies
the benefits banks will experience and the impediments banks face in promoting card-based online bill payments via online banking.
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As the growth rate for traditional online bill payment slows, Aite Group believes that banks will find their highest
rate of growth in online bill pay from card-based payers. More than two-thirds of online consumers currently pay a portion of their monthly bills with a credit
or debit card, and according to Aite Group forecasts, electronic card-based payments will account for 10% of all consumer payments by 2012 - double its percentage
from 2007. The opportunity for banks, however, isn't in necessarily from generating interchange revenue, but in attracting a segment of valuable consumers to their
own sites, instead of going to biller sites.
"Aite Group believes that the benefits of enabling card-based payments outweigh the negatives for both banks and billers," says
Ron Shevlin, senior analyst with Aite Group and author of this
report. "The business case for card-based bill payment lies in the opportunity for banks to attract and interact with an attractive set of
consumers - consumers that are young, relatively affluent, and (most importantly) actively involved and engaged with the firms with which they do business."
This 18-page Impact Note contains 13 figures and five tables. Clients of Aite Group's Retail Banking service can download the report by
clicking on the icon to the right. 
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Related Aite Group Research:
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To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com |
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