Online Bill Payments Surpass Checks for the First Time Among Internet- Connected Households

ATLANTA - A new study reported today finds that for the first time, consumers in Internet-connected households are paying more of their household bills online than by check. The survey was conducted in January 2007 by Harris Interactive and The Marketing Workshop. (Source: CheckFree Corp.).

For the first time, consumers in Internet-connected households are paying more of their bills online than by paper check, according to a new study conducted by Harris Interactive and the Marketing Workshop.

The 2007 Consumer Bill Payment Survey showed that, for the first time, online bill payments exceeded bill payments made by paper check among online households.

Online payments made up 39% of the total volume of bill payments among online households, an increase of 4 percentage points over a December 2005 survey. In contrast, the volume of checks sent through the mail fell 4 percentage points to 34% of the overall volume.

Striata has found another study by Aite Group predicts that online payments will rise to 28% by 2010. At the same time, check usage for consumer bill payment is falling rapidly, from 50% in 2005 to 27% in 2008 (also predicted by the Aite Group).

The rush to accept electronic payments has been a major driver of Electronic Bill Presentment and Payment (EBPP) programs for many. The focus appears to be shifting. Electronic bill presentment is now being pushed more urgently, in the hopes of reducing printing and mailing costs, and saving a few trees.