Gartner Research

Trends in Business-to-Consumer Electronic Bill Presentment and Payment

Published: 25 August 2000

ID: G0092114

Analyst(s): Kenneth Kerr, Avivah Litan


Management Summary This report looks at the trends in electronic bill presentment and payment (EBPP) from the business-to-consumer (B2C) perspective. Business-to-business (B2B) e-billing is a more complex marketplace with a different set of drivers for adoption and different technical and workflow requirements. The report is based in large part on a year-end 1999 Gartner EBPP survey of high-volume billers. Consumer adoption of electronic billing and payments remains low, but high-volume billers are implementing EBPP programs in anticipation of future adoption. The industry has faced the classic "which came first" dilemma: too few e-bills to interest consumers, too few e-bill customers to interest billers. Now, however, significant numbers of high-volume billers are adopting EBPP programs, and midsize e-billers are showing growing signs of interest in joining the EBPP movement through low-cost ASP billing services. It remains to be seen if this increase in e-bill presentment will be answered by mass consumer interest in this new service. o Five industries account for 70 percent of the 17 billion bills sent to consumers: utilities, insurance, credit card, lending and telecommunications. o Thirty-two percent of high-volume (greater than 250,000 bills a month) B2C service billers present bills on the Internet. This will grow to 48 percent by the end of 2000. o Reducing billing costs is the primary adoption driver for these billers, while lack of consumer demand is the main barrier for nonadopters. o Nine percent of bills are now paid electronically, most (79 percent) of which are paid via automated clearinghouse (ACH). Less than one percent of these electronically paid bills are both viewed and paid electronically. o Consolidators are used by almost 80 percent of e-billers. Nearly 60 percent of these use the thick- consolidator model, mainly because of speed to market considerations. However, 63 percent of this population plans to move to the thin...

Table Of Contents
  • Management Summary
  • B2C Market Size
    • Bill Presentment Opportunity
    • Bill Payment Opportunity
    • Billers' Expectations of Future Bill Payments
  • Drivers and Barriers to Billers Adoption of EBPP
    • Strategic vs. ROI Decision Drivers
    • Drivers for Adoption
    • Barriers to Adoption
    • Cost Savings Potential with EBPP
  • Methods Used In Sending E-Bills
    • Current and Planned Methods for Presenting E-Bills
    • Use of Consolidators
    • Primary E-Billing Arrangement
  • Communicating with Customers Through E-Billing
    • New revenue From E-Billing
    • Marketing Through E-Billing
    • Providing Customer Service Through E-Billing
  • Expenditures on EBPP Programs

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