Report Highlighted At The IEC 2000 Conference.
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."
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|Title Annotation:||Industry Trend or Event|
|Comment:||Report Highlighted At The IEC 2000 Conference.(Industry Trend or Event)|
|Publication:||EDP Weekly's IT Monitor|
|Date:||Mar 6, 2000|
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