Enabling Technologies

Users Paying Their Bills via Mobile Apps has increased two-fold between 2012 & 2013

MEDICI

Even if many of us do not use a mobile wallet to store our credit/debit cards or use them to split bills at restaurants yet, we do end up paying our bills with a mobile app. Why? Because it is a lot easier, simpler and less time consuming than every other option. FISERV Inc. a global provider of financial services technology solutions, has recently published a survey that indicates the usage of smartphones to pay bills has doubled from 8 Mn U.S online households in 2012 to nearly 16 Mn in 2013.

Some of the key points from their survey:

  • Mobile bill payment surged 150% among smartphone  users between 2012 and 2013.
  • Consumers who pay bills using their mobile device do so primarily for its convenience (70%), anytime access (55%) and time savings (49%).
  • The survey found that 83% of consumers are using two or more channels to pay their bills each month.
  • The average number of bill payment methods consumers use ticked up 10% from 2012 to 2013, rising to an average of 3.2 channels each month. While the number of U.S. online households that pay a bill by check declined from 61% in 2012 to 53% in 2013.
  • Many consumers continue to use established methods of paying bills like checks, phone or in-person payments, and 2 out of 3 believe it is important for billers to offer multiple ways to pay bills.
  • The Gen Y effect is evident here as 74% of Gen Y respondents consider offering multiple payment options important, compared to 67% of all respondents.
  • The Billing Household Survey found that the number one motivator to pay bills or pay more bills using a smartphone is the use of an app and smartphone camera to take a picture of the bill, cited by 36% of respondents.
  • Almost 3 out of 4 households that expressed an interest in receiving alerts and reminders said they would have a more positive perception of a biller that sends them a reminder to pay a bill.
  • 66% of the respondents stated that alerts and reminders would increase the likelihood they would use paperless e-bills.
  • More than 1 in 3 tablet owners had used their tablet to visit a biller site in the previous 30 days. The main reason for the visit was to pay a bill (63%) which was followed by accessing invoice information and history (36%).
  • 25% of the owners use their tablet to pay bills at either a biller or financial institution website - an increase of 19% over 2012.
  • The survey also found that 60% of tablet owners would like to receive e-bills on their tablet.
  • More than 80% of consumers who visit a biller's website do so to pay a bill, reinforcing the importance for billers to make billing and payment a prominent and strategic part of the site.
  • 71% of consumers who use a biller site to make payments say that online accessibility has eliminated the need to call customer care.

"While new bill payment channels such as mobile and tablet are coming on strong, traditional channels remain in use, creating a need for billers to support an ever-growing set of billing and payments, channels and payment types," said Jardon Bouska, division president of Biller Solutions at FIESRV. "Americans, particularly Gen Y, are hungry for multiple options for digital bill presentment and payment. Fiserv provides the most comprehensive suite of billing and payment options to billers and financial institutions, enabling them to realize and unlock the new opportunities a shifting consumer bill payment landscape offers," he added.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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