TowerGroup, in its recent report entitled "2002 Market Survey Results: Consumers Speak Out about Online Bill Payment and EBPP," estimates that 13% of consumers are using online bill payment functionality -- up from just 2% in 1998.

Additionally, Tower determines that the percentage of consumers viewing electronic bills or billing statements online grew from 1% in 1998 to 20% this year.

Specifically, Tower reports that nearly one-half (46%) of those surveyed pay between two and five bills per month online, but just 16% pay six or more per month online.

Tower surveyed 4,000 US households and weighted the results by age and income to properly represent all US households. The survey determines that 55% of users of online bill payment services pay their bills through online banks or credit unions.

Trailing this figure closely, 39% of online bill payment users pay their bills directly at the billers' sites. Tower notes the strong position banks hold over other online bill paying venues is at risk, and can only be maintained by further demonstration of the value-add compared to non-bank venues.

As for the types of bills consumers are simply viewing online, Tower finds that over one-half are viewing credit card bills online, while 24% review long distance phone bills and 24% review internet service bills online.

For an idea of future growth in the online billing market, Jupiter Research estimates in September 2002 that the number of US households viewing bills online will rise from 18 million last year to 50 million by 2006.

December 2002

As featured on eMarketer.com