Online Payment Is Growing Fast
I recently read an interesting presentation about how bill payment methods, specifically online payment, have changed in the last five years made by representatives from Wells Fargo and Great Plains Energy Inc./Kansas City Power and Light. The presenters compiled some telling statistics that should interest any business that bills its customers, especially those like utilities that send out monthly statements. Here are some highlights from the presentation.
Online payment is a growth area
In 2015, online payments grew by 21 percent as payments by check dropped 19 percent. Credit card and debit card payments increased 7 percent and 8 percent respectively.
Biller direct payment programs most popular
The percentage of online households using a biller’s online payment system rose from 53 percent in 2014 to 66 percent in 2015. Across all generations, those who pay bills online most often pay them to the biller instead of through online banking: 71 percent of Millennials; 75 percent Gen Xers; 65 percent of baby boomers and 53 percent of seniors.
About 50 percent of households still used checks for some payments in both years. Mobile payments increased slightly over the two-year period, from 27 percent to 33 percent.
No one way to pay bills
There are a lot of ways to pay bills, and most people don’t pay all their bills the same way. According to the report, 15 percent of consumers say they use six or more payment methods; 10 percent use only one. 23 percent use three methods; 19 percent use four. In 2014, the average number of bill payment methods consumers used each month was 2.9; in 2015 it was 3.6.
Generational differences narrow
There isn’t as much difference in generations as you might think when it comes to electronic vs. paper bill payment. Forty percent of seniors reported paying bills online compared to 47 percent of Millennials and 49 percent of Gen Xers.
Customers like the convenience of mobile bill pay
In 2015, 33 percent of online households paid at least one bill through mobile bill pay, up from only 6 percent in 2011. The top reasons given for pay by phone: easy to do; convenience when on the go; time saving; 24/7 access; good for last-minute payments.
If your company is trying to shift more of its customers to your electronic payment system, talk to us. We have helped many of our clients increase their percentage of online payments with through our e-adoption program.
Interested in how Bluegrass can help?
See what we can do.
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