Boston, March 25, 2013 – A new report from Aite Group reviews the relative market share of and progress made by the four largest consolidator bill payment processors in the United States, which combined process more than 85% of U.S. online- and mobile banking-initiated bill payments. The report also provides detailed insights into the state of U.S. consolidator bill payments (i.e., online and mobile banking bill payments).
The consolidator channel continues to grab share of total U.S. consumer bill payments--that's good news for banks. The bad news is that transaction growth has considerably slowed over the past few years. Banks can blame external factors for that: The total volume of consumer bill payments in the United States fell between 2009 and 2011 as consumers cut back on their bill obligations and consolidated their loans, lenders closed accounts, and providers bundled offerings such as cable, phone, and Internet into a single bill for each user. But banks should also blame some internal factors as the consolidator model struggles to win the masses of consumers who pay their bills at the biller's website or through other means.
“There is a silver lining for banks: Mobile is creating new opportunities for the consolidator model to become ever more convenient to consumers than the biller-direct model,” says Gwenn Bézard, co-founder and research director with Aite Group and author of this report. “Banks and their vendors will have to move more quickly to improve the user experience, however, before the new generation of digital mailboxes and aggregators catches up.”
Firms mentioned in this report include Doxo, eBay's PayPal, FIS, Fiserv, Intuit's Mint, Jack Henry's iPay, Manilla, MasterCard RPPS, Online Resources, PageOnce, Payveris, Pitney Bowes' Volly, Visa ePay, and Zumbox.
This 45-page Impact Report contains 52 figures and one table. Clients of Aite Group’s Retail Banking service can download the report.