Consumer Bill Payments: New Entrants Are Back
A new generation of technology providers is stepping into the US$1 billion EBPP industry. New entrants are betting on the combination of Internet technologies, cards, and the growing integration between payment, bill presentment, and e-care to challenge t
Boston, MA, February 9, 2005 – In a new report, Consumer Bill Payments: New Entrants Are Back, Aite Group reviews consumers’ bill payment methods, scrutinizes the structure of the Electronic Bill Payment and Presentment (EBPP) market, and discusses competitive trends. Aite Group reveals that a new generation of EBPP providers (e.g., Billeo) is entering the consolidation business.
The research firm notes that the new comers tend to piggyback on the growing role of cards in consumer bill payments. “New entrants have spotted the emergence of a new ecosystem that could facilitate the development of alternative consolidation services, and they aim to take advantage of it,” comments Gwenn Bézard, a Research Director with Aite Group and co-author of the report. Bill payments made by debit and credit cards via mail, the Web and the telephone are emerging as solid competitors to the legacy consolidator model. Between 2005 and 2008, cards will increase their share of total consumer bill payments by 8 points, from 10% in 2005 to 18% in 2008, while banks’ Web sites will grow their share by 6 points, from 8% to 14%.
Aite Group recommends retail banks to a) open their consolidator web site to bill payments by cards; b) consider special rewards to credit and debit card holders for initiating bill payments by card via their online banking Web site; and c) make EBPP services with simple routing procedures a la Paypal available to their small business customers.
This is a 30-page Impact Report. Clients of Aite Group's Retail and Wholesale Banking services can download the report.