Printer Friendly

Report Highlighted At The IEC 2000 Conference.

When it comes to saving money, consumers would rather lick their own stamps than pay a bank fee for paying bills online. In 1999, only three million US households were paying their bills online compared with seven million households who view their accounts online and an impressive 20 million stock portfolios that were tracked online in 1999.

When it comes to giving up the old tattered checkbook, consumers are looking for savings as an incentive - and saving time is not enough. In a recent GartnerGroup survey of consumers who were already using online banking or online trading services, 60 percent said they are not willing to pay a fee at all for online bill payment. Today, four out of five banks charge customers for paying bills online. The average monthly fee is more than $6.

"Market pressures to recoup investments and show growth eventually will force Internet bill payment service providers to offer financial incentives to attract a critical mass of consumers," says Avivah Litan, Research Director Payments Systems, at GartnerGroup. "As with many Internet offerings, the consumers will have their way when it comes to fees in the bill payment marketplace."

By 2002, GartnerGroup predicts that 15 million US households will be using online bill payment.

"Marketers at banks need to find more attractive pricing points for this service," continued Litan. "Or they should bundle lower checking account fees as a retention incentive. Once all those account numbers are entered into the system, consumers will be reluctant to begin again with a different online bill payment system."
COPYRIGHT 2000 Millin Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Industry Trend or Event
Comment:Report Highlighted At The IEC 2000 Conference.(Industry Trend or Event)
Publication:EDP Weekly's IT Monitor
Geographic Code:1USA
Date:Mar 6, 2000
Words:258
Previous Article:IDC Launches Web Talk 2000: Event Explores Opportunities In A Market That Will Reach $19B By 2004.
Next Article:IDC Survey Finds Handhelds Are Making Their Way To The Mainstream.
Topics:


Related Articles
Gartner Group and Expocon host the first iEC -- Internet & Electronic Commerce Conference & Exhibition; More than 150 exhibitors and 10,000 attendees...
Technology Industry Experts To Share Their Insight Into The Future Of Electronic Commerce At The Internet & Electronic Commerce Conference &...
Gartner Group to sponsor Internet & Electronic Commerce Conference & Exposition expected to draw 15,000 technology decision-makers.
ADVISORY/Richard Notebaert, Chairman and CEO of Ameritech, Holds Press Briefing at NCF98.
Leading Electronic Commerce Visionaries Keynote At iEC 2000; Learn how to successfully transition from business to e-business at the industry's most...
USA Networks' Barry Diller and Priceline.com's Jay Walker Among iEC Keynote Speakers in New York Feb. 29-March 2.
SUPERnet Registration Opens.
Visionael To Discuss the Provisioning of Premium IP Services At IEC ``Seamless Network'' ComForum.
Information security management best practice based on ISO/IEC 17799; the international information security standard provides a framework for...
Top Industry Executives Explore Broadband and Mobility Trends During IEC Executive Forum at GLOBALCOMM 2006.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters