Innovations In Online Bill Payment

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From its inception, online bill payment has made waves in the industry. The latest research from Mercator Advisory Group explores developments in online bill payment and their effects on the industry's future. Beginning with a look at the two generally accepted bill payment models, direct-biller and consolidator, the report looks at how a new online bill model, the Direct-Aggregator is changing the billing game. Direct-aggregators stand to capture significant customer attention and slow the growth of consolidator sites.

From its inception, online bill payment has made waves in the industry. The latest research from Mercator Advisory Group explores developments in online bill payment and their effects on the industry's future. Beginning with a look at the two generally accepted bill payment models, direct-biller and consolidator, the report looks at how a new online bill model, the Direct-Aggregator is changing the billing game. Direct-aggregators stand to capture significant customer attention and slow the growth of consolidator sites.

"Online bill payment is a complicated industry where small changes to infrastructure, business models and consumer behavior can have dramatic effects. In the last year or so, both the rules for online bill payment and the players on the field have changed," according to Mike Friedman, Director of Mercator Advisory Group's Emerging Technologies Service and lead analyst on the report. "There is plenty of room for continued growth in online billing; however, the strategic playbook that was in place only a few years ago, may already be outdated."

In Innovations In Online Bill Payment, Mercator Advisory Group examines the three business models defining online bill payment in today's market. The research also identifies the shifting strategic focus of online bill payment sites and how FSI's offering pay-anyone solutions will need to adjust. With online bill payment being offered more and more as a free service by consolidators, the use of premium services and cost-saving measures will be critical to continued success. The report examines both available premium services and the steps banks can undertake to lower the cost structure of their bill payment divisions.

The report also looks at the competitive landscape and discusses new products and features at leading online bill payment sites. New businesses are entering the online bill payment space with innovative approaches to capture customer attention. Drawing from refined understanding of consumer preferences, companies are tailoring their offerings to capture more specific and segmented demographics.

Electronic bill payment has significantly changed the way consumers pay bills and financial institutions provide online service; however, the fundamental nature of bill payment is unchanged by its migration to online channels.

The Direct-Aggregation billing model has emerged and will likely slow the growth of consolidator sites as well as encourage non-online bill payers to switch to online bill payment.

Recent shifts to free online bill provision for customers have changed the way financial institutions and other bill payment providers think about online bill payment.

New services from bill payment vendors such as faster money transfers and account aggregation packages seek to increase the ability of online billing providers to raise revenues and lower costs.

A list of electronic billing vendors, including CheckFree, Metavante, Online Resources and Billeo is provided highlighting new features and offerings

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. Please visit us online at http://www.mercatoradvisorygroup.com.

For more information call Mercator Advisory Group's main line: 781-419-1700 or send email to info@mercatoradvisorygroup.com.

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Robert Misasi
MERCATOR ADVISORY GROUP
781-419-1700
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