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How Americans Pay Their Bills: Sizing Bill Pay Channels and Methods

JANUARY 2017

David Albertazzi

This white paper was commissioned by ACI Worldwide and written by Aite Group. All views and

opinions expressed and all information presented are that of Aite Group. ACI Worldwide

provides this white paper for informational purposes only.

How Americans Pay Their Bills: Sizing Bill Pay Channels and Methods JANUARY 2017

© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com

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TABLE OF CONTENTS IMPACT POINTS .............................................................................................................................................. 6

INTRODUCTION .............................................................................................................................................. 7

METHODOLOGY ........................................................................................................................................ 7

BILL PAYMENT BY CHANNEL AND METHOD ................................................................................................... 8

CATEGORIES OF BILLS PAID ....................................................................................................................... 9

AVERAGE AMOUNT PER BILL .................................................................................................................. 12

SEGMENTATION OF BILLS PAID .............................................................................................................. 13

BILL PAYMENT BY BILL CATEGORY ................................................................................................................ 23

CABLE/TV/INTERNET ............................................................................................................................... 23

MORTGAGE ............................................................................................................................................. 25

RENT ....................................................................................................................................................... 27

OTHER REAL ESTATE FEES ....................................................................................................................... 29

PROPERTY TAXES .................................................................................................................................... 31

WATER/SEWER ....................................................................................................................................... 33

ELECTRICITY............................................................................................................................................. 35

GAS/OIL ................................................................................................................................................... 37

GARBAGE ................................................................................................................................................ 39

PROPERTY INSURANCE ........................................................................................................................... 41

LANDLINE PHONES .................................................................................................................................. 43

HOME SECURITY ..................................................................................................................................... 45

AUTO/CAR LOAN/LEASE PAYMENTS ....................................................................................................... 47

AUTO/CAR INSURANCE ........................................................................................................................... 49

VEHICLE REGISTRATION .......................................................................................................................... 51

MAJOR CREDIT CARDS ............................................................................................................................ 53

RETAIL/DEPARTMENT STORE CREDIT CARDS ......................................................................................... 55

STUDENT LOANS ..................................................................................................................................... 57

OTHER LOANS ......................................................................................................................................... 59

FEDERAL INCOME TAXES ........................................................................................................................ 61

STATE INCOME TAXES ............................................................................................................................. 63

PARKING TICKETS/COURT FEES AND FINES ............................................................................................ 65

UNIVERSITIES/COLLEGES/TRADE SCHOOLS ............................................................................................ 67

PUBLIC/PRIVATE PRESCHOOL/ELEMENTARY SCHOOL/ SECONDARY SCHOOL ....................................... 69

CELLPHONES/WIRELESS PHONES ............................................................................................................ 71

LIFE INSURANCE ...................................................................................................................................... 73

HEALTH INSURANCE ................................................................................................................................ 75

MEDICAL ................................................................................................................................................. 77

CHARITABLE DONATIONS ....................................................................................................................... 79

CONCLUSION ................................................................................................................................................ 82



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RELATED AITE GROUP RESEARCH ................................................................................................................. 83

ABOUT AITE GROUP...................................................................................................................................... 84

AUTHOR INFORMATION ......................................................................................................................... 84

CONTACT ................................................................................................................................................. 84

ABOUT ACI WORLDWIDE .............................................................................................................................. 85

LIST OF FIGURES FIGURE 1: BILL PAYMENT TYPES ................................................................................................................... 14

FIGURE 2: 2016 ONE-TIME BILL PAYMENT VOLUME BY CHANNEL .............................................................. 14

FIGURE 3: 2016 ONE-TIME BILL PAYMENT GDV BY CHANNEL ...................................................................... 15

FIGURE 4: 2016 RECURRING BILL PAYMENT VOLUME BY CHANNEL ............................................................ 15

FIGURE 5: 2016 RECURRING BILL PAYMENT GDV BY CHANNEL ................................................................... 16

FIGURE 6: PERCENTAGE OF ONLINE BILL VOLUME BY TYPE OF SITE ............................................................ 17

FIGURE 7: 2016 BILL VOLUME BY METHOD .................................................................................................. 17

FIGURE 8: PERCENTAGE OF BILL VOLUME BY METHOD ............................................................................... 18

FIGURE 9: 2016 GDV BY METHOD ................................................................................................................ 18

FIGURE 10: PERCENTAGE OF GDV BY METHOD............................................................................................ 19

FIGURE 11: PERCENTAGE OF ONE-TIME BILLS PAID BY CHANNEL BY GENERATION .................................... 20

FIGURE 12: PERCENTAGE OF RECURRING BILLS PAID BY CHANNEL BY GENERATION ................................. 20

FIGURE 13: PERCENTAGE OF ONLINE BILLS PAID BY TYPE OF SITE BY GENERATION ................................... 21

FIGURE 14: PERCENTAGE OF ONLINE BILLS PAID BY GENERATION .............................................................. 21

FIGURE 15: 2016 PERCENTAGE OF BILLS PAID BY METHOD BY GENERATION ............................................. 22

LIST OF TABLES TABLE A: CATEGORIES OF BILLS—DEFINITIONS .............................................................................................. 8

TABLE B: ESTIMATED 2016 U.S. CONSUMER BILL VOLUME ........................................................................... 9

TABLE C: CHANGE IN NUMBER OF BILLS, 2010 TO 2016 .............................................................................. 11

TABLE D: CHANGE IN GDV OF BILLS, 2010 TO 2016 ..................................................................................... 11

TABLE E: 2016 AVERAGE BILL AMOUNT AND CHANGE IN HOW PAYMENT IS MADE FROM TWO YEARS AGO

............................................................................................................................................................. 12

TABLE F: CABLE/TV/INTERNET ONE-TIME BILL PAYMENT VOLUME ............................................................. 23

TABLE G: CABLE/TV/INTERNET RECURRING BILL PAYMENT VOLUME ......................................................... 24

TABLE H: MORTGAGE ONE-TIME BILL PAYMENT VOLUME .......................................................................... 25

TABLE I: MORTGAGE RECURRING BILL PAYMENT VOLUME ......................................................................... 26

TABLE J: RENT ONE-TIME BILL PAYMENT VOLUME ...................................................................................... 27

TABLE K: RENT RECURRING BILL PAYMENT VOLUME ................................................................................... 29

TABLE L: OTHER REAL ESTATE FEES ONE-TIME BILL PAYMENT VOLUME ..................................................... 29

TABLE M: OTHER REAL ESTATE FEES RECURRING BILL PAYMENT VOLUME ................................................. 31

TABLE N: PROPERTY TAXES ONE-TIME BILL PAYMENT VOLUME.................................................................. 31



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TABLE O: PROPERTY TAXES RECURRING BILL PAYMENT VOLUME ............................................................... 33

TABLE P: WATER/SEWER ONE-TIME BILL PAYMENT VOLUME ..................................................................... 33

TABLE Q: WATER/SEWER RECURRING BILL PAYMENT VOLUME .................................................................. 35

TABLE R: ELECTRICITY ONE-TIME BILL PAYMENT VOLUME .......................................................................... 35

TABLE S: ELECTRICITY RECURRING BILL PAYMENT VOLUME ........................................................................ 37

TABLE T: GAS/OIL ONE-TIME BILL PAYMENT VOLUME................................................................................. 37

TABLE U: GAS/OIL RECURRING BILL PAYMENT VOLUME ............................................................................. 39

TABLE V: GARBAGE ONE-TIME BILL PAYMENT VOLUME .............................................................................. 39

TABLE W: GARBAGE RECURRING BILL PAYMENT VOLUME .......................................................................... 41

TABLE X: PROPERTY INSURANCE ONE-TIME BILL PAYMENT VOLUME ......................................................... 41

TABLE Y: PROPERTY INSURANCE RECURRING BILL PAYMENT VOLUME ....................................................... 43

TABLE Z: LANDLINE PHONES ONE-TIME BILL PAYMENT VOLUME ................................................................ 43

TABLE AA: LANDLINE PHONES RECURRING BILL PAYMENT VOLUME .......................................................... 45

TABLE BB: HOME SECURITY ONE-TIME BILL PAYMENT VOLUME ................................................................. 45

TABLE CC: HOME SECURITY RECURRING BILL PAYMENT VOLUME .............................................................. 47

TABLE DD: AUTO/CAR LOAN/LEASE ONE-TIME BILL PAYMENT VOLUME .................................................... 47

TABLE EE: AUTO/CAR LOAN/LEASE RECURRING BILL PAYMENT VOLUME ................................................... 49

TABLE FF: AUTO/CAR INSURANCE ONE-TIME BILL PAYMENT VOLUME ....................................................... 49

TABLE GG: AUTO/CAR INSURANCE RECURRING BILL PAYMENT VOLUME ................................................... 51

TABLE HH: VEHICLE REGISTRATION ONE-TIME BILL PAYMENT VOLUME ..................................................... 51

TABLE II: VEHICLE REGISTRATION RECURRING BILL PAYMENT VOLUME ..................................................... 53

TABLE JJ: MAJOR CREDIT CARDS ONE-TIME BILL PAYMENT VOLUME ......................................................... 53

TABLE KK: MAJOR CREDIT CARDS RECURRING BILL PAYMENT VOLUME ..................................................... 55

TABLE LL: RETAIL/DEPARTMENT STORE CREDIT CARDS ONE-TIME BILL PAYMENT VOLUME ...................... 55

TABLE MM: RETAIL/DEPARTMENT STORE CREDIT CARDS RECURRING BILL PAYMENT VOLUME ................ 57

TABLE NN: STUDENT LOANS ONE-TIME BILL PAYMENT VOLUME ................................................................ 57

TABLE OO: STUDENT LOANS RECURRING BILL PAYMENT VOLUME ............................................................. 59

TABLE PP: OTHER LOANS ONE-TIME BILL PAYMENT VOLUME ..................................................................... 59

TABLE QQ: OTHER LOANS RECURRING BILL PAYMENT VOLUME ................................................................. 61

TABLE RR: FEDERAL INCOME TAXES ONE-TIME BILL PAYMENT VOLUME .................................................... 61

TABLE SS: FEDERAL INCOME TAXES RECURRING BILL PAYMENT VOLUME .................................................. 63

TABLE TT: STATE INCOME TAXES ONE-TIME BILL PAYMENT VOLUME ......................................................... 63

TABLE UU: STATE INCOME TAXES RECURRING BILL PAYMENT VOLUME ..................................................... 65

TABLE VV: PARKING TICKETS/COURT FEES AND FINES ONE-TIME BILL PAYMENT VOLUME ....................... 65

TABLE WW: PARKING TICKETS/COURT FEES AND FINES RECURRING BILL PAYMENT VOLUME .................. 67

TABLE XX: UNIVERSITIES/COLLEGES/TRADE SCHOOLS ONE-TIME BILL PAYMENT VOLUME ........................ 67

TABLE YY: UNIVERSITIES/COLLEGES/TRADE SCHOOLS RECURRING BILL PAYMENT VOLUME ..................... 69

TABLE ZZ: PUBLIC/PRIVATE PRESCHOOL/ELEMENTARY SCHOOL/SECONDARY SCHOOL ONE-TIME BILL

PAYMENT VOLUME ............................................................................................................................. 69



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TABLE AAA: PUBLIC/PRIVATE PRESCHOOL/ELEMENTARY SCHOOL/SECONDARY SCHOOL RECURRING BILL

PAYMENT VOLUME ............................................................................................................................. 71

TABLE BBB: CELLPHONE/WIRELESS PHONE ONE-TIME BILL PAYMENT VOLUME ........................................ 71

TABLE CCC: CELLPHONE/WIRELESS PHONE RECURRING BILL PAYMENT VOLUME ...................................... 73

TABLE DDD: LIFE INSURANCE ONE-TIME BILL PAYMENT VOLUME .............................................................. 73

TABLE EEE: LIFE INSURANCE RECURRING BILL PAYMENT VOLUME ............................................................. 75

TABLE FFF: HEALTH INSURANCE ONE-TIME BILL PAYMENT VOLUME .......................................................... 75

TABLE GGG: HEALTH INSURANCE RECURRING BILL PAYMENT VOLUME ..................................................... 77

TABLE HHH: MEDICAL ONE-TIME BILL PAYMENT VOLUME .......................................................................... 77

TABLE III: MEDICAL RECURRING BILL PAYMENT VOLUME ........................................................................... 79

TABLE JJJ: CHARITABLE DONATIONS ONE-TIME BILL PAYMENT VOLUME ................................................... 79

TABLE KKK: CHARITABLE DONATIONS RECURRING BILL PAYMENT VOLUME .............................................. 81



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IMPACT POINTS

This Impact Report is based on a Q3 2016 Aite Group survey of 2,429 U.S.

consumers. It is intended for firms that provide consumer bill payment services

and companies seeking to understand consumers’ bill pay behavior.

Across the most frequently paid types of bills in 2016, U.S. consumers paid more

than 14.7 billion bills, spending US$3.9 trillion. Bills for utilities, credit cards,

cable/TV/internet, and cellphones account for roughly half of all bills paid.

Among the 14.7 billion bills paid in 2016, approximately 10 billion, or 68%, are

made as one-time payments, and 4.7 billion, or 32%, are set up on a recurring

basis.

Among the 14.7 billion bills, approximately 8.2 billion, or 56%, are made online

via a biller, bank, or third-party website.

The percentage of online payments made on biller sites has grown from 62% in

2010 to 73% in 2016 at the expense of bank bill pay, which declined from 38% in

2010 to 27% in 2016.

Payments made through the Automated Clearing House (ACH) exceed 6.8

billion, and Americans still write slightly more than 2.5 billion checks, provide

their debit card information to pay nearly 2.2 billion bills, and use their credit

card information to pay another 2.2 billion bills.

The use of mail to make one-time bill payments differs by generation, with 40%

of the bills paid by seniors sent through the mail. That percentage declines with

each younger generation, down to 15% for millennials.

The use of billers’ websites represents 44% of all one-time bill payments made

by millennials, while it represents 19% for seniors.

As a percentage of recurring bills paid, the use of biller sites declines with age, at

53% for millennials and 38% for seniors, and mail or phone bill pay is highest

among seniors (34%) and lowest among Generation Xers (19%).

In terms of payment methods, seniors pay a larger percentage of bills using

checks than do younger generations: 31% for seniors versus only 8% for

millennials. Millennials and Gen Xers, however, pay more of their bills using

debit cards than older consumers do.



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INTRODUCTION

U.S. consumers pay a lot of bills: approximately 14.7 billion bills in 2016, shelling out roughly

US$3.9 trillion. What was once a relatively simple transaction, usually involving handing over

cash or writing a check, has evolved into a wide range of transactions involving many different

payment methods and channels. Over the last few years, consumers have been significantly

reprioritizing how and when they pay their bills, often based on cash flow and convenience.

This Impact Report, sponsored by ACI Worldwide, first sizes the channels and methods

consumers used to pay their most common bills in 2016 and uncovers insights into how all

generations—seniors, baby boomers, Gen Xers, and millennials—are conducting bill payment

activities. Second, the report analyzes bill payment volume and gross dollar value across the 29

most popular bill categories.

The report will be of interest to payment executives who are interested in keeping tabs on U.S.

consumer bill payment trends as well as to the vendor community servicing the bill payment

market.

METHODOLOGY

The following analysis is based on a Q3 2016 Aite Group survey of 2,429 U.S. consumers. The

survey was conducted online among U.S. consumers who participated in a research panel. The

profile of the sample is in proportion to the U.S. population for age, gender, income, geographic

region, and race. The data for the full sample for each year have a margin of error of 3 points at

the 95% level of confidence; statistical tests of significance were conducted at the 95% level of

confidence.

Participants in the research indicated that they are involved in paying most or all of the bills in

their households. Much of the analysis in the report is based on the volume of bills paid by these

households:

31,238 bill types/285,382 bills paid by 2,429 respondents in 2016

6,748 bill types paid by 1,107 respondents in 2013

52,319 bill types/595,493 bills paid by 4,696 respondents in 2010

Population data from the United States Census Bureau was used to calculate projections for the

total U.S. bill payment market.

Further, in this report, bill payment behavior is analyzed by age of the bill payer—actually, the

bill payer’s generation. For this purpose, seniors are defined as individuals who were born before

1946, baby boomers between 1946 and 1964, Gen Xers between 1965 and 1980, and Gen Yers

or millennials between 1981 and 2000.



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BILL PAYMENT BY CHANNEL AND METHOD

For the purpose of this study, Aite Group compiled bill payment information across the following

29 most popular categories of bills (Table A).

Table A: Categories of Bills—Definitions

Bill category Additional definitions

Cable/satellite TV/internet N/A

Mortgage N/A

Rent N/A

Other real estate fees Includes homeowners or condominium association fees

Property taxes Paid directly to the city/town and not paid with the mortgage payment or held in escrow

Water/sewer N/A

Electricity N/A

Gas/oil N/A

Garbage N/A

Property insurance For homeowners or renters

Landline phones Wired in the residence and billed separately from TV/internet

Home security N/A

Auto/car loans and lease payments N/A

Auto/car insurance N/A

Vehicle registration Includes new and existing vehicle(s) registrations

Major credit cards Such as Mastercard, Visa, Discover, and American Express, but not credit cards from particular department stores or gasoline companies

Retail/department store credit cards Such as Macy’s or Target

Student loans N/A

Other loans Includes home equity, personal loans, boat loans, and recreational vehicle loans

Federal income taxes Paid directly to the U.S. Treasury and separate from taxes withheld from pay

State income taxes Paid directly to the state and separate from taxes withheld from pay



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Bill category Additional definitions

Parking tickets/court fees and fines N/A

Universities/colleges/trade schools For public or private higher education tuition, fees, and room and board

Public/private preschool/elementary school/secondary school

For tuition, activity fees, transportation fees, after-school care, etc.

Cellphones/wireless phones N/A

Life insurance N/A

Health insurance Paid specifically by the individual and not through payroll deduction

Medical payments Such as hospital, laboratory, doctor, or dentist bills, not including copays

Charitable donations Made either as a one-time or as a monthly payment

Source: Aite Group survey of 2,429 U.S. consumers, Q3 2016

CATEG ORIES OF B ILLS PAID

Across the 29 most popular categories of bills, Americans paid approximately 14.7 billion bills in

2016, shelling out roughly US$3.9 trillion. Nearly 3.6 billion of those bills are for utilities

(electricity, water/sewer, gas/oil, and garbage), followed by credit cards and cable/TV/internet

(each with nearly 1.3 billion bills) and cellphones/wireless phones with 1.2 billion bills. In gross

dollar volume (GDV), credit card bills take the biggest chunk of change out of consumers’

wallets, accounting for one in five dollars spent on bills, or nearly US$719 billion. Mortgage

payments represent nearly US$630 billion (Table B).

Table B: Estimated 2016 U.S. Consumer Bill Volume

Bill category Incidence rate

Number of bills (In millions)

GDV (In US$ billions)

Percentage of bills

Percentage of GDV

Electricity 93% 1,327.0 $142.7 9.0% 3.7%

Major credit cards 77% 1,297.5 $718.9 8.8% 18.7%

Cable/TV/internet 88% 1,267.2 $135.7 8.6% 3.5%

Cellphones/wireless phones

83% 1,180.3 $111.0 8.0% 2.9%

Gas/oil 63% 902.9 $63.9 6.1% 1.7%

Water/sewer 68% 819.5 $51.9 5.6% 1.3%

Auto/car insurance 79% 766.9 $129.0 5.2% 3.3%

Health insurance 44% 609.6 $134.5 4.1% 3.5%



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Bill category Incidence rate



Percentage of bills

Percentage of GDV

Landline phones 41% 583.4 $26.6 4.0% 0.7%

Garbage 51% 553.9 $20.3 3.8% 0.5%

Rent 38% 548.4 $381.2 3.7% 9.9%

Auto/car loans 35% 521.4 $210.5 3.5% 5.5%

Retail store credit cards 40% 509.0 $58.1 3.5% 1.5%

Mortgage 36% 506.5 $628.3 3.4% 16.3%

Charitable donations 38% 489.6 $76.9 3.3% 2.0%

Life insurance 45% 486.3 $67.1 3.3% 1.7%

Medical 43% 413.3 $68.3 2.8% 1.8%

Property insurance 54% 347.8 $75.7 2.4% 2.0%

Student loans 17% 236.3 $54.3 1.6% 1.4%

Home security 19% 209.9 $19.8 1.4% 0.5%

Other loans 14% 204.4 $63.6 1.4% 1.7%

Federal income taxes 39% 178.0 $214.4 1.2% 5.6%

State income taxes 33% 149.2 $59.2 1.0% 3.7%

Property taxes 41% 147.0 $155.9 1.0% 18.7%

Vehicle registration 61% 128.9 $14.5 0.9% 3.5%

Elementary school/ preschool

11% 102.6 $45.6 0.7% 2.9%

Other real estate fees 15% 102.0 $33.8 0.7% 1.7%

Fees and fines 13% 85.3 $4.4 0.6% 1.3%

Universities/colleges 9% 62.4 $85.6 0.4% 3.3%

TOTAL 14,736.5 $3,851.5 100% 100%


Table C highlights changes in a few key categories compared to prior years. The number of bills

paid in 2016 is up 2.1% from 2010.1 Credit card, education, cellphone, and cable/TV/internet-

1. Throughout this report, actual 2010 and 2013 data come from the Aite Group Impact reports How

Americans Pay Their Bills: Sizing and Forecasting Bill Pay Channels and Methods, 2010-2013, October

http://www.aitegroup.com/Reports/ReportDetail.aspx?recordItemID=715

http://www.aitegroup.com/Reports/ReportDetail.aspx?recordItemID=715



11

related bills each increased from their 2010 levels (26.2%, 15.1%, 5.6%, and 2.6%, respectively).

Reflecting the trend toward mainly relying on cellphones, the number of bills paid in the landline

phone category declined by nearly 27% from 2010 to 2016.

Table C: Change in Number of Bills, 2010 to 2016

Bill category 2010 number of bills (In millions)

2013 number of bills (In millions)

2016 number of bills (In millions)

2010 to 2016 percentage change

Utilities 3,811.1 3,949.8 3,603.3 -5.5%

Credit card 1,431.3 1,549.3 1,806.5 26.2%

Cable/TV/internet 1,235.1 1,165.5 1,267.2 2.6%

Cellphone 1,117.6 1,188.6 1,180.3 5.6%

Landline phone 796.9 832.7 583.4 -26.8%

Rent 697.9 673.1 548.4 -21.4%

Car loans 570.8 502.2 521.4 -8.7%

Mortgage 621.0 619.2 506.5 -18.4%

Education 143.3 154.9 164.9 15.1%

All bills 14,432.9 14,705.7 14,736.5 2.1%

Source: Aite Group surveys of 2,429 U.S. consumers in Q3 2016, 1,107 consumers in Q2 2013, and 4,696 consumers in Q3 2010

In terms of GDV, Americans pay 0.8% more in bills in 2016 than they did in 2010. The largest

increase comes from cable/TV/internet bills, which jumped 28.5% from 2010 to 2016, followed

by cellphone bills with 22.3%. The GDV of landline phone bills declined by nearly 26% from 2010

to 2016. While the number of bills went up for education between 2010 and 2016, the GDV

went down by approximately 25% (Table D).

Table D: Change in GDV of Bills, 2010 to 2016

Bill category 2010 GDV (In US$ billions)

2013 GDV (In US$ billions)



Credit card $677.0 $732.8 $777.0 14.8%

Mortgage $636.1 $656.9 $628.3 -1.2%

Rent $328.9 $360.8 $381.2 15.9%

2010, and How Americans Pay Their Bills: Sizing and Forecasting Bill Pay Channels and Methods, 2013-2016, September 2013, respectively.

http://aitegroup.com/report/how-americans-pay-their-bills-sizing-and-forecasting-bill-pay-channels-and-methods-2013-2016




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Bill category 2010 GDV (In US$ billions)




Utilities $300.1 $321.9 $278.8 -7.1%

Car loans $220.6 $227.0 $210.5 -4.6%

Cable/TV/internet $105.6 $149.2 $135.7 28.5%

Education $175.3 $189.6 $131.1 -25.2%

Cellphone $90.7 $96.3 $111.0 22.3%

Landline phone $36.0 $37.5 $26.6 -26.0%

All bills $3,588.8 $3,807.6 $3,851.5 0.8%


AVERAGE AMOUNT PER B ILL

The top five bill categories with the highest average amount per bill are mortgage payments

(US$1,226), university/college payments (US$1,218), property taxes (US$1,035), federal income

taxes (US$1,016), and rent payments (US$689). Fifteen percent of fees and fines, 14% of

elementary school/preschool payments, and 14% of university/college payments were made

differently two years ago (Table E).

Table E: 2016 Average Bill Amount and Change in How Payment Is Made From Two Years Ago

Bill category Average amount per bill (In US$)

Two years ago, I made this payment differently than I do today

Two years ago, I made this payment the same way I do today

I did not make this type of payment 2 years ago

Fees and fines $49 15% 67% 18%

Elementary school/ preschool

$437 14% 75% 11%

Universities/colleges $1,218 14% 67% 20%

Home security $93 13% 77% 9%

Student loans $220 10% 71% 18%

Rent $689 10% 76% 14%

Cable/satellite TV/internet

$106 10% 82% 9%

Landline phones $44 9% 87% 4%

Auto/car insurance $167 9% 86% 5%



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Bill category Average amount per bill (In US$)

Two years ago, I made this payment differently than I do today

Two years ago, I made this payment the same way I do today

I did not make this type of payment 2 years ago

Health insurance $201 9% 86% 5%

Electricity $106 8% 87% 5%

Gas/oil $70 8% 87% 5%

Life insurance $134 8% 86% 6%

Medical $160 8% 85% 7%

Cellphone/wireless phone

$93 8% 89% 4%

Retail/department store credit cards

$112 8% 87% 6%

Garbage $35 8% 85% 8%

Water/sewer $63 7% 86% 7%

Mortgage $1,226 7% 85% 8%

Major credit cards $546 7% 87% 6%

State income taxes $337 7% 87% 6%

Auto/car loans/lease payments

$395 7% 80% 13%

Federal income taxes $1,016 6% 85% 8%

Property insurance $213 6% 88% 6%

Other loans $303 6% 75% 19%

Vehicle registration $111 6% 90% 5%

Property taxes $1,035 6% 90% 4%

Other real estate fees $333 5% 84% 11%

Charitable donations $156 5% 92% 3%


SEG MENTATION OF B ILLS PAID

Among the 14.7 billion bills paid in 2016, approximately 10 billion, or 68%, are made as one-time

payments; 4.7 billion, or 32%, are set up on a recurring basis (Figure 1).



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Figure 1: Bill Payment Types


O N E - T I M E B I L L P A Y M E N T B Y C H A N N E L

Among the 10 billion one-time bill payments made in 2016, approximately 4.9 billion bills, or

49%, are paid online, dwarfing each of the 2.4 billion to be paid through the mail, the 1.4 billion

paid in person, the 734 million paid by direct debit, and the 583 million paid by phone (Figure 2).

Figure 2: 2016 One-Time Bill Payment Volume by Channel


I set up automated recurring

(repeating) payments

32%

I make one-time (that is, not automatic) payments

68%

Q. How do you typically make the payment for this bill? (N=285,382 bills paid by 2,429 respondents)

39.1

583.5

734.4

1,267.5

1,417.5

2,407.7

3,567.2

Third-party website

Phone

Direct debit

Bank's website

In person

Mail

Biller's website

2016 U.S. One-Time Bill Payment Volume by Channel(Number of bills in millions; n=188,653 bills)



15

Dollar-wise, among the US$2.7 trillion paid as one-time bill payments in 2016, approximately

US$873 billion is spent at the billers’ websites, US$715 billion is spent via the mail, US$406

billion is spent in person, and US$346 billion is spent via the banks’ websites (Figure 3).

Figure 3: 2016 One-Time Bill Payment GDV by Channel


R E C U R R I N G B I L L P A Y M E N T B Y C H A N N E L

Among the 4.7 billion recurring bill payments made in 2016, approximately 3.4 billion bills, or

71%, are paid online, dwarfing the 1.1 billion paid through the mail or via phone (Figure 4).

Figure 4: 2016 Recurring Bill Payment Volume by Channel


$18.1

$131.2

$210.6

$346.0

$406.5

$714.7

$873.3

Third-party website

Phone

Direct debit

Bank's website

In person

Mail

Biller's website

2016 U.S. One-Time Bill Payment GDV by Channel(In US$ billions; n=188,653 bills)

231.1

937.3

1,125.2

2,426.1

Do not know

Bank's website

Mail or phone

Biller's website

2016 U.S. Recurring Bill Payment Volume by Channel(Number of bills in millions; n=96,729 bills)



16

In terms of GDV, among the US$1.2 trillion paid via recurring bill payments in 2016,

approximately US$530 billion is spent at the billers’ websites, US$301 billion is spent via the

banks’ websites, and US$255 billion is spent via the mail or phone (Figure 5).

Figure 5: 2016 Recurring Bill Payment GDV by Channel


The percentage of online payments made on biller sites has grown from 62% of online bills in

2010 to 73% in 2016, at the expense of bank bill pay, which declined from 38% in 2010 to 27% in

2016. Third-party sites—such as QuickBooks, MyCheckFree.com, or Mint.com—have not grown

in the same time period Figure 6.

$65.4

$255.4

$300.7

$529.6

Do not know

Mail or phone

Bank's website

Biller's website

2016 U.S. Recurring Bill Payment GDV by Channel(In US$ billions; n=96,729 bills)



17

Figure 6: Percentage of Online Bill Volume by Type of Site


B I L L P A Y M E N T B Y M E T H O D

Payments made through ACH exceed 6.8 billion in 2016. Americans write slightly more than 2.5

billion checks to pay their bills in 2016, but they provide their debit card information to pay more

than 2.2 billion bills and their credit card information to pay another 2.2 billion bills (Figure 7).

Figure 7: 2016 Bill Volume by Method


62%69% 73%

38% 30% 27%

2% 0.5%

2010 (n=225,310 bills) 2013 (n=3,566 bill types) 2016 (n=162,265 bills)

Percentage of Online Bill Volume by Type of Site, 2010 vs. 2013 vs. 2016

Third-partywebsite

Bank website

Biller website

126.3

276.6

523.7

2,223.1

2,246.8

2,538.7

6,801.3

Prepaid debit card

Money order

Cash

Credit card

Debit card

Check

ACH

2016 U.S. Bill Payment Volume by Method of Payment(Number of bills in millions; N=285,382 bills)



18

The percentage of bills paid by check went from 37% to 17% between 2010 and 2016, while the

number of bills paid via ACH went from 36% to 46%. Credit cards approximately doubled to

reach 15%, and debit cards went from 11% to 15% during that same period (Figure 8).

Figure 8: Percentage of Bill Volume by Method


ACH payments total nearly US$2 trillion in 2016. Checks are used to pay over US$801 million in

bills in 2016, while card-based (credit, debit, and prepaid) payments account for US$864 million

and cash for US$124 million (Figure 9).

Figure 9: 2016 GDV by Method


36% 36%46%

37%

23%

17%

11%

20% 15%

7%10% 15%

6%4%

4%3%

3%2%4%1%

2010 (N=595,493 bills) 2013 (N=6,748 bill types) 2016 (N=285,382 bills)

U.S. Bill Volume by Method, 2010 vs. 2013 vs. 2016

Prepaid debitcard

Money order

Cash

Credit card

Debit card

Check

ACH

$21.9

$99.6

$124.4

$396.9

$444.8

$801.5

$1,962.4

Prepaid debit card

Money order

Cash

Credit card

Debit card

Check

ACH

2016 U.S. Bill Payment Volume by Method of Payment(In US$ billions; N=285,382 bills)



19

Checks, which represented 38% in terms of GDV of all bills paid in 2010, now represent 21%. On

the other hand, ACH went up from 38% to 51%. Card-based (credit, debit, and prepaid)

payments, which accounted for just 15% of the amount of money spent on bill payments in

2010, are used to spend almost one in four dollars spent on bills in 2016 (Figure 10).

Figure 10: Percentage of GDV by Method


B I L L P A Y M E N T B Y G E N E R A T I O N

The use of mail to pay bills differs by generation, with 40% of the bills paid by seniors sent

through the mail. That percentage declines with each younger generation, down to 15% of one-

time bills paid by millennials. On the other hand, the use of billers’ websites represents 44% of

all one-time payments made by millennials, while it represents 19% for seniors. The use of

banks’ websites represents 9% of all one-time payments made by millennials, while it represents

16% for seniors (Figure 11).

38% 39%51%

38%29%

21%

9%14%

12%

6%8%

10%5% 4%

3%4%

4% 3%2%1%

2010 (N=595,493 bills) 2013 (N=6,748 bill types) 2016 (N=285,382 bills)

Percentage of U.S. Gross Dollar Volume of Bills by Method,2010 vs. 2013 vs. 2016

Prepaid debitcard

Money order

Cash

Credit card

Debit card

Check

ACH



20

Figure 11: Percentage of One-Time Bills Paid by Channel by Generation


The use of biller sites is the same for millennials as it is for Gen Xers and baby boomers, but

declines among seniors (53% for millennials and Gen Xers, and 52% for boomers, versus 38% for

seniors). Mail or phone is highest among seniors at 34% and lowest for Gen Xers at 19% (Figure

12).

Figure 12: Percentage of Recurring Bills Paid by Channel by Generation


44%

38%

32%

19%

18%

13%

12%

13%

15%

21%

29%

40%

9%

14%

13%

16%

7%

6%

6%

4%

6%

8%

7%

8%

0.5%

0.4%

0.4%

0.3%

Millennials(n=49,808 bills)

Gen Xers (n=62,257bills)

Baby boomers(n=58,150 bills)

Seniors (n=48,438bills)

Percentage of One-Time Bill Payments by Channel by Generation

Biller's website In person Mail Bank's website Phone Direct debit Third-partywebsite

53%

53%

52%

38%

25%

19%

24%

34%

19%

24%

17%

17%

3%

4%

6%

11%


Gen Xers(n=30,120 bills)


Seniors(n=10,184 bills)

Percentage of Recurring Bill Payments by Channel by Generation

Biller's website Mail or phone Bank's website Do not know



21

When looking strictly at all bills paid online, 78% of online bills paid by millennials are paid at the

billers’ websites versus 60% for seniors. Banks’ websites represent 22% for millennials versus

39% for seniors (Figure 13).

Figure 13: Percentage of Online Bills Paid by Type of Site by Generation


Online bills as a percentage of all bills decrease with age with millennials at 61%, Gen Xers at

60%, baby boomers at 52%, and seniors at 42% (Figure 14).

Figure 14: Percentage of Online Bills Paid by Generation


78%71% 72%

60%

22%28% 27%

39%

0.5% 0.4% 1% 0.4%





Generational Breakdown of Online Bill Volume by Site Type

Third-partywebsite

Bank website

Biller website

61%

60%

52%

42%

Millennials (n=81,990bills)




Percentage of Online Bill Payments by Generation



22

In terms of payment methods, seniors pay a larger percentage of bills using checks than do

younger generations: 31% for seniors versus 23% for baby boomers, 15% for Gen Xers, and only

8% for millennials. Millennials and Gen Xers, however, pay more of their bills using debit cards

than older consumers do: 22% and 16%, respectively, versus 11% for baby boomers and 5% for

seniors. All other methods of payment remain fairly consistent across generations (Figure 15).

Figure 15: 2016 Percentage of Bills Paid by Method by Generation


44% 47% 47% 48%

22% 16%11% 5%

18%15%

13%13%

8%15%

23% 31%

4% 4% 3%2%2% 3% 2%1% 1% 1%


Gen Xers(n=92,377 bills)



Percentage of Bill Payments by Instrument by Generation

Prepaid debitcard

Money order

Cash

Check

Credit card

Debit card

ACH



23

BILL PAYMENT BY BILL CATEGORY

This section of the report breaks down the data across the 29 most popular categories of bills for

both one-time and recurring bill payments.

CABLE/TV/INTERNET

Cable/TV/internet bills represent the third-largest bill payment category, with 1.28 billion bills

paid annually. A large number of one-time cable/TV/internet bills are paid through the billers’

websites (nearly 350 million bills, or 44.8%, adding up to US$36.6 billion) or with debit cards and

credit cards. This is the result of large billers that aggressively market their online bill payment

capabilities. One-time cable/TV/internet bills have the highest percentage of payments made by

phone at 9% (Table F). Compared to other industries, recurring cable/TV/internet bills have the

third-highest percentage of payments made via the billers’ websites at 59.7%, and the fourth-

lowest percentage of payments made via the banks’ websites at 13.6% (Table G).

Table F: Cable/TV/Internet One-Time Bill Payment Volume

Channel Method Number of bills (In millions)

Method’s percentage of channel by number of bills


Method’s percentage of channel by GDV

Direct debit Total 57.1 7.3% of total $6.2 7.4% of total

In person Check 11.4 21.2% $1.3 23.7%

Money order 3.3 6.1% $0.3 5.6%

Cash 23.3 43.2% $2.4 42.9%

Credit card 7.0 12.9% $0.7 12.1%

Debit card 8.9 16.5% $0.9 15.7%

Prepaid debit card - 0.0% $0.0 0.0%

Mobile wallet - 0.0% $0.0 0.0%

Total 53.8 6.9% of total $5.7 6.7% of total

Mail Check 122.6 85.2% $14.5 86.9%

Money order 9.9 6.9% $1.1 6.6%

Credit card 7.3 5.1% $0.7 4.2%

Debit card 3.5 2.4% $0.3 1.9%

Prepaid debit card 0.7 0.5% $0.1 0.5%




24





Phone ACH 15.0 21.3% $1.6 21.0%

Credit card 15.7 22.4% $1.7 22.8%

Debit card 36.0 51.2% $3.8 51.3%



Biller’s website

ACH 98.5 28.2% $10.5 28.7%

Credit card 90.4 25.8% $9.4 25.5%

Debit card 154.6 44.2% $16.1 43.9%


Mobile wallet 1.6 0.5% $0.2 0.5%


Bank’s website


Third-party website


TOTAL 781.7 100.0% $84.5 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 15,394 one-time bills for cable/TV/internet, Q3 2016

Table G: Cable/TV/Internet Recurring Bill Payment Volume


Percentage of total by number of bills


Percentage of total by GDV

Channel Mail or phone 115.5 23.8% $12.4 24.3%

Biller’s website 289.9 59.7% $30.2 58.9%

Bank’s website 66.3 13.6% $7.0 13.6%

Do not know 13.9 2.9% $1.6 3.1%

TOTAL 485.5 100.0% $51.2 100.0%

Method ACH 236.0 48.6% $24.9 48.7%

Credit card 185.3 38.2% $20.0 39.0%

Debit card 58.6 12.1% $5.7 11.2%



25






TOTAL 485.5 100.0% $51.2 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 9,288 recurring bills for cable/TV/internet, Q3 2016

MORTGAGE

Over 33% of one-time mortgage payments, adding up to over US$111 billion, are made via the

billers’ websites. One-time mortgage payments made via the banks’ websites represent nearly

19% (Table H). The percentage of recurring mortgage payments made via ACH is the second-

highest of all categories at 89.1%, while the percentage of recurring mortgage payments made

with credit cards is one of the lowest at 5.6% (Table I).

Table H: Mortgage One-Time Bill Payment Volume






In person Check 15.5 59.6% $19.9 62.1%

Money order 1.6 6.1% $2.1 6.7%

Cash 6.2 23.9% $7.1 22.1%

Credit card 1.1 4.2% $1.0 3.1%

Debit card 1.6 6.2% $1.9 6.0%




Mail Check 67.8 87.7% $85.0 88.9%

Money order 5.6 7.2% $6.4 6.7%

Credit card 0.5 0.7% $0.7 0.7%

Debit card 3.4 4.4% $3.5 3.6%



Phone ACH 10.4 76.2% $14.2 79.7%



26





Credit card 3.2 23.8% $3.6 20.3%

Debit card - 0.0% $0.0 0.0%



Biller’s website

ACH 74.0 76.7% $86.0 77.3%

Credit card 6.9 7.2% $7.8 7.0%

Debit card 15.0 15.5% $17.0 15.3%


Mobile wallet 0.6 0.6% $0.5 0.4%


Bank’s website


Third-party website


TOTAL 289.0 100.0% $353.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 5,669 one-time bills for mortgage, Q3 2016

Table I: Mortgage Recurring Bill Payment Volume






Biller’s website 80.4 36.9% $97.3 35.4%

Bank’s website 85.3 39.2% $108.7 39.5%

Do not know 11.0 5.1% $14.8 5.4%

TOTAL 217.6 100.0% $275.3 100.0%

Method ACH 193.8 89.1% $246.4 89.5%

Credit card 12.1 5.6% $14.6 5.3%

Debit card 11.7 5.4% $14.2 5.2%




27





TOTAL 217.6 100.0% $275.3 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 4,287 recurring bills for mortgage, Q3 2016

RENT

Rent payments are somewhat unique in the mix of consumer bills because it’s the one category

in which many of the payments are person-to-person and not consumer-to-business. As a result,

the percentage of one-time in-person payments is the highest among all categories at 55.1%.

One-time rent payments made via the bank’s website are the lowest among all categories with

only 4% (Table J, Table K).

Table J: Rent One-Time Bill Payment Volume






In person Check 118.2 47.4% $82.1 47.3%

Money order 55.1 22.1% $38.2 22.0%

Cash 70.6 28.3% $49.4 28.4%

Credit card 1.3 0.5% $0.9 0.5%

Debit card 3.6 1.4% $2.6 1.5%




Mail Check 71.9 71.3% $49.9 71.0%

Money order 24.8 24.6% $17.5 24.9%

Credit card 1.7 1.7% $1.2 1.7%

Debit card 2.4 2.4% $1.7 2.4%



Phone ACH 3.1 43.5% $2.2 44.0%

Credit card 1.1 15.7% $0.8 15.5%



28





Debit card 2.9 40.7% $2.0 40.5%



Biller’s website

ACH 31.7 53.4% $22.2 53.8%

Credit card 6.9 11.6% $4.8 11.6%

Debit card 20.7 35.0% $14.3 34.7%




Bank’s website


Third-party website


TOTAL 452.6 100.0% $315.2 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 8,836 one-time bills for rent, Q3 2016



29

Table K: Rent Recurring Bill Payment Volume






Biller’s website 34.4 35.9% $23.7 35.9%

Bank’s website 23.4 24.4% $16.2 24.6%

Do not know 6.5 6.8% $4.4 6.7%

TOTAL 95.8 100.0% $66.0 100.0%

Method ACH 66.5 69.5% $45.9 69.6%

Credit card 8.1 8.5% $5.6 8.4%

Debit card 18.6 19.4% $12.7 19.3%


TOTAL 95.8 100.0% $66.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,757 recurring bills for rent, Q3 2016

OTHER REAL ESTATE FEES

Almost half of one-time other real estate bills, which include homeowners or condominium

association fees, are paid through the mail (representing the second-highest percentage among

all categories and nearly 35 million bills adding up to over US$12 billion) and paid for by check

(91.7%; Table L). In terms of recurring payments, ACH represents the highest percentage at

71.1% (Table M).

Table L: Other Real Estate Fees One-Time Bill Payment Volume






In person Check 3.8 52.7% $1.4 62.6%

Money order 0.8 11.6% $0.2 8.4%

Cash 2.0 27.2% $0.5 20.9%

Credit card - 0.0% $0.0 0.0%

Debit card 0.6 8.5% $0.2 8.1%




30







Mail Check 31.8 91.7% $11.4 93.9%

Money order 1.1 3.3% $0.3 2.3%

Credit card 0.6 1.6% $0.1 0.8%

Debit card 1.2 3.4% $0.4 3.0%



Phone ACH 0.3 20.0% $0.1 20.0%

Credit card 0.9 60.0% $0.3 60.0%

Debit card 0.3 20.0% $0.1 20.0%



Biller’s website

ACH 9.2 65.4% $3.1 68.9%

Credit card 2.9 20.6% $0.9 20.6%

Debit card 1.7 12.1% $0.4 9.4%


Mobile wallet 0.3 2.0% $0.0 1.1%


Bank’s website


Third-party website


TOTAL 73.0 100.0% $24.8 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,183 one-time bills for other real estate fees, Q3 2016



31

Table M: Other Real Estate Fees Recurring Bill Payment Volume






Biller’s website 12.5 43.2% $3.9 43.3%

Bank’s website 8.0 27.5% $2.3 25.5%

Do not know 3.3 11.3% $1.3 14.4%

TOTAL 29.0 100.0% $9.0 100.0%

Method ACH 20.6 71.1% $6.6 73.2%

Credit card 6.7 22.9% $2.0 22.1%

Debit card 1.7 6.0% $0.4 4.7%


TOTAL 29.0 100.0% $9.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 705 recurring bills for other real estate fees, Q3 2016

PROPERTY TAXES

Property taxes’ one-time payments sent via the mail have one of the highest percentages among

all categories with 42.7%, and most of them (93.5%) are paid via checks (Table N). For recurring

property tax payments, ACH is the preferred method at 69.4% (Table O).

Table N: Property Taxes One-Time Bill Payment Volume






In person Check 18.0 62.9% $21.5 69.1%

Money order 0.1 0.5% $0.1 0.5%

Cash 5.9 20.5% $5.9 19.0%

Credit card 1.8 6.1% $1.5 4.7%

Debit card 2.7 9.3% $2.0 6.4%


Mobile wallet 0.2 0.8% $0.1 0.4%



32






Mail Check 46.3 93.5% $54.9 95.1%

Money order 1.1 2.3% $1.1 1.9%

Credit card 1.0 2.1% $0.9 1.5%

Debit card 1.1 2.2% $0.9 1.5%



Phone ACH 0.9 31.0% $1.1 37.8%

Credit card 1.1 37.6% $1.1 36.9%

Debit card 0.9 31.5% $0.7 25.3%



Biller’s website

ACH 8.9 46.9% $9.5 48.9%

Credit card 5.1 26.8% $5.4 27.7%

Debit card 5.0 26.3% $4.5 23.4%




Bank’s website


Third-party website


TOTAL 116.1 100.0% $128.3 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,885 one-time bills for property taxes, Q3 2016



33

Table O: Property Taxes Recurring Bill Payment Volume






Biller’s website 13.3 43.2% $11.0 39.9%

Bank’s website 9.1 29.6% $8.3 30.1%

Do not know 1.0 3.2% $1.1 4.0%

TOTAL 30.9 100.0% $27.6 100.0%

Method ACH 21.4 69.4% $20.1 73.0%

Credit card 4.8 15.7% $4.0 14.5%

Debit card 3.4 10.9% $2.7 9.6%


TOTAL 30.9 100.0% $27.6 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 946 recurring bills for property taxes, Q3 2016

WATER/SEWER

One-time water/sewer payments are distributed fairly evenly among the various channels with

19.6% of payments made in person, 28.3% made via the mail, 27.9% made at the billers’

websites, and 12.6% made at the banks’ websites (Table P). Water/sewer’s recurring payments

paid via the mail or phone have one of the highest percentages among all categories with 29.7%.

However, most recurring payments are made via the billers’ websites at 47.6%, and via ACH at

70.4% (Table Q).

Table P: Water/Sewer One-Time Bill Payment Volume






In person Check 52.1 43.9% $3.4 45.4%

Money order 8.7 7.3% $0.5 7.0%

Cash 43.7 36.8% $2.7 36.3%

Credit card 2.4 2.0% $0.2 2.0%

Debit card 11.8 9.9% $0.7 9.3%



34








Mail Check 155.5 91.0% $10.2 91.5%

Money order 7.0 4.1% $0.4 3.9%

Credit card 1.4 0.8% $0.1 0.8%

Debit card 6.0 3.5% $0.4 3.2%



Phone ACH 4.4 14.2% $0.3 13.8%

Credit card 7.7 24.8% $0.5 24.7%

Debit card 17.0 54.7% $1.1 55.5%



Biller’s website

ACH 55.0 32.7% $3.4 32.7%

Credit card 43.9 26.0% $2.7 26.0%

Debit card 68.1 40.4% $4.2 40.4%


Mobile wallet 0.5 0.3% $0.0 0.3%


Bank’s website


Third-party website


TOTAL 604.6 100.0% $38.6 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 11,749 one-time bills for water/sewer, Q3 2016



35

Table Q: Water/Sewer Recurring Bill Payment Volume




Percentage of channel by GDV


Biller’s website 102.2 47.6% $6.3 47.5%

Bank’s website 42.3 19.7% $2.6 19.8%

Do not know 6.6 3.1% $0.4 3.4%

TOTAL 214.9 100.0% $13.3 100.0%

Method ACH 151.3 70.4% $9.4 71.1%

Credit card 40.7 18.9% $2.5 18.7%

Debit card 20.4 9.5% $1.2 9.1%


TOTAL 214.9 100.0% $13.3 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 4,178 recurring bills for water/sewer, Q3 2016

ELECTRIC ITY

Electricity bills represent the largest bill payment category with 1.33 billion bills paid annually. A

large number of both one-time and recurring electricity bills are paid through the billers’

websites (36.9% or 354 million bills, and 54.2% or 200 million bills, respectively), with a large

number of them paid for via ACH. This is once again the result of large billers that aggressively

market their online bill payment capabilities (Table R, Table S).

Table R: Electricity One-Time Bill Payment Volume






In person Check 31.4 29.1% $3.5 30.7%

Money order 7.5 6.9% $0.8 6.8%

Cash 47.8 44.3% $5.0 43.7%

Credit card 6.9 6.4% $0.7 6.2%

Debit card 13.7 12.7% $1.4 12.3%




36







Mail Check 194.6 86.9% $21.9 87.8%

Money order 16.1 7.2% $1.7 7.0%

Credit card 3.4 1.5% $0.3 1.4%

Debit card 9.3 4.2% $0.9 3.6%



Phone ACH 15.7 25.1% $1.7 25.9%

Credit card 10.0 16.1% $1.0 15.9%

Debit card 34.5 55.2% $3.6 54.4%



Biller’s website

ACH 162.7 45.9% $17.5 46.6%

Credit card 60.8 17.1% $6.4 17.0%

Debit card 125.1 35.3% $13.1 34.8%


Mobile wallet 0.5 0.2% $0.1 0.2%


Bank’s website


Third-party website


TOTAL 958.9 100.0% $103.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 18,933 one-time bills for electricity, Q3 2016



37

Table S: Electricity Recurring Bill Payment Volume






Biller’s website 199.6 54.2% $21.1 54.1%

Bank’s website 69.0 18.7% $7.3 18.8%

Do not know 9.8 2.7% $1.1 2.9%

TOTAL 368.0 100.0% $39.0 100.0%

Method ACH 252.5 68.6% $27.2 69.7%

Credit card 66.6 18.1% $6.8 17.6%

Debit card 45.9 12.5% $4.7 11.9%


TOTAL 368.0 100.0% $39.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 6,871 recurring bills for electricity, Q3 2016

GAS/OIL

Thirty percent of one-time gas/oil payments, adding up to over US$14 billion, are made via the

billers’ websites. Nearly 54% of recurring payments for this category are also made via the

billers’ websites, with ACH being the preferred method at 64.6% (Table U). One-time gas/oil

payments made via the banks’ websites represent nearly 13.3% (Table T).

Table T: Gas/Oil One-Time Bill Payment Volume






In person Check 25.2 18.0% $1.8 18.3%

Money order 6.4 4.5% $0.4 4.4%

Cash 56.7 40.5% $4.0 39.9%

Credit card 25.4 18.1% $1.9 18.6%

Debit card 26.4 18.8% $1.9 18.8%




38







Mail Check 125.8 82.5% $9.1 83.3%

Money order 11.4 7.5% $0.8 7.0%

Credit card 7.0 4.6% $0.5 4.4%

Debit card 8.3 5.4% $0.6 5.2%



Phone ACH 6.0 14.9% $0.4 15.2%

Credit card 11.6 28.7% $0.8 28.6%

Debit card 20.3 50.5% $1.4 50.3%



Biller’s website

ACH 92.0 45.0% $6.5 45.4%

Credit card 43.9 21.5% $3.1 21.8%

Debit card 65.6 32.1% $4.5 31.5%


Mobile wallet 1.7 0.8% $0.1 0.8%


Bank’s website


Third-party website


TOTAL 678.1 100.0% $48.2 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 13,312 one-time bills for gas/oil, Q3 2016



39

Table U: Gas/Oil Recurring Bill Payment Volume






Biller’s website 120.3 53.5% $8.3 52.9%

Bank’s website 38.7 17.2% $2.7 17.4%

Do not know 7.1 3.2% $0.5 3.3%

TOTAL 224.8 100.0% $15.7 100.0%

Method ACH 145.2 64.6% $10.2 65.1%

Credit card 48.4 21.5% $3.4 21.4%

Debit card 30.0 13.4% $2.0 13.0%


TOTAL 224.8 100.0% $15.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 4,192 recurring bills for gas/oil, Q3 2016

GARBAGE

Nearly 32%, or 123 million, of one-time garbage bills are paid through the mail, with 89.5% of

them paid for by check. These billers are typically smaller billers that have not aggressively

marketed their online presence and bill payment capabilities (Table V, Table W).

Table V: Garbage One-Time Bill Payment Volume






In person Check 20.6 30.5% $0.8 31.1%

Money order 5.9 8.7% $0.2 8.4%

Cash 32.5 48.2% $1.2 48.2%

Credit card 1.7 2.6% $0.1 2.5%

Debit card 6.8 10.1% $0.2 9.8%





40






Mail Check 110.4 89.5% $4.1 89.9%

Money order 7.5 6.1% $0.3 5.7%

Credit card 0.9 0.7% $0.0 0.7%

Debit card 2.8 2.3% $0.1 2.2%



Phone ACH 5.0 21.4% $0.2 21.0%

Credit card 5.7 24.7% $0.2 23.7%

Debit card 11.6 50.0% $0.4 51.1%



Biller’s website

ACH 30.2 30.3% $1.1 30.1%

Credit card 29.2 29.3% $1.1 30.0%

Debit card 38.7 39.0% $1.4 38.5%


Mobile wallet 0.9 0.9% $0.0 0.9%


Bank’s website


Third-party website


TOTAL 391.5 100.0% $14.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 7,571 one-time bills for garbage, Q3 2016



41

Table W: Garbage Recurring Bill Payment Volume






Biller’s website 77.7 47.8% $2.8 47.7%

Bank’s website 32.3 19.9% $1.2 19.7%

Do not know 6.7 4.1% $0.2 4.1%

TOTAL 162.4 100.0% $5.9 100.0%

Method ACH 101.2 62.3% $3.7 62.5%

Credit card 41.4 25.5% $1.5 25.4%

Debit card 18.0 11.1% $0.6 10.9%


TOTAL 162.4 100.0% $5.9 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 3,213 recurring bills for garbage, Q3 2016

PROPERTY INSURANCE

One-time mail payments for property insurance represent the highest percentage at 32.2%,

followed closely by payments made via the billers’ websites (30.3%; Table X). Nearly 75% of

recurring property insurance payments are paid via ACH (Table Y).

Table X: Property Insurance One-Time Bill Payment Volume






In person Check 8.4 41.5% $2.0 44.7%

Money order - 0.0% $0.0 0.0%

Cash 5.3 26.2% $1.2 26.4%

Credit card 3.3 16.0% $0.7 15.7%

Debit card 3.3 16.4% $0.6 13.3%





42






Mail Check 63.8 88.3% $15.1 89.8%

Money order 2.7 3.7% $0.5 3.2%

Credit card 2.8 3.9% $0.6 3.7%

Debit card 2.9 4.0% $0.6 3.3%



Phone ACH 3.4 25.6% $0.7 23.9%

Credit card 6.5 49.0% $1.5 51.9%

Debit card 3.1 23.5% $0.6 22.0%



Biller’s website

ACH 26.4 38.9% $5.8 39.0%

Credit card 23.2 34.1% $5.2 35.3%

Debit card 17.2 25.3% $3.6 24.1%




Bank’s website


Third-party website


TOTAL 224.3 100.0% $50.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 3,687 one-time bills for property insurance, Q3 2016



43

Table Y: Property Insurance Recurring Bill Payment Volume






Biller’s website 57.0 46.2% $11.6 45.3%

Bank’s website 24.6 20.0% $5.0 19.6%

Do not know 9.1 7.3% $2.1 8.0%

TOTAL 123.5 100.0% $25.6 100.0%

Method ACH 92.4 74.8% $19.4 75.8%

Credit card 19.7 15.9% $4.1 16.0%

Debit card 11.0 8.9% $2.0 7.9%


TOTAL 123.5 100.0% $25.6 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 3,036 recurring bills for property insurance, Q3 2016

LANDLINE PHONES

Reflecting the trend toward mainly relying on cellphones, the number of bills paid in the landline

phone category has declined over the last few years, adding up to 583 million bills for 2016.

Nearly 39% of one-time landline phone bills are paid via the billers’ websites and are about

evenly distributed between ACH (34.4%), debit cards (33.1%), and credit cards (32%). Twenty-

nine percent of the payments are also made via the mail, with over 86% paid by check (Table Z).

Over half of recurring landline phone bills are paid via the billers’ websites and ACH (Table AA).

Table Z: Landline Phones One-Time Bill Payment Volume






In person Check 3.8 20.7% $0.2 19.7%

Money order 1.1 5.9% $0.0 5.9%

Cash 6.6 36.3% $0.3 35.0%

Credit card 2.9 16.0% $0.1 16.1%

Debit card 3.2 17.5% $0.2 20.2%



44








Mail Check 91.1 86.2% $4.1 85.4%

Money order 7.4 7.0% $0.3 7.1%

Credit card 4.3 4.1% $0.2 4.5%

Debit card 2.8 2.6% $0.1 2.9%



Phone ACH 4.2 19.7% $0.2 20.9%

Credit card 6.2 29.1% $0.3 28.8%

Debit card 10.3 48.1% $0.5 47.6%



Biller’s website

ACH 48.3 34.4% $2.1 33.8%

Credit card 44.9 32.0% $2.0 32.0%

Debit card 46.4 33.1% $2.1 33.8%




Bank’s website


Third-party website


TOTAL 362.2 100.0% $16.3 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 6,868 one-time bills for landline phones, Q3 2016



45

Table AA: Landline Phones Recurring Bill Payment Volume






Biller’s website 115.3 52.1% $5.3 51.4%

Bank’s website 39.8 18.0% $1.9 18.5%

Do not know 10.3 4.7% $0.5 4.6%

TOTAL 221.2 100.0% $10.4 100.0%

Method ACH 115.9 52.4% $5.4 52.4%

Credit card 81.9 37.0% $3.8 36.7%

Debit card 21.2 9.6% $1.0 9.8%


TOTAL 221.2 100.0% $10.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 4,180 recurring bills for landline phones, Q3 2016

HOME SECURITY

Americans spend nearly US$20 billion on home security bills. While phone payments are low

overall, one-time home security payments are the second-highest category across phone

payments at 8.2% (Table BB). Over half of recurring home security bills are paid at the billers’

websites and via ACH (Table CC).

Table BB: Home Security One-Time Bill Payment Volume






In person Check 0.9 12.5% $0.1 8.0%

Money order 0.4 5.7% $0.0 3.5%

Cash 1.3 17.7% $0.2 21.2%

Credit card 1.3 17.5% $0.2 17.7%

Debit card 3.1 41.0% $0.4 46.0%




46





Mobile wallet 0.4 5.7% $0.0 3.5%


Mail Check 22.6 76.0% $1.8 70.7%

Money order 2.2 7.4% $0.2 8.4%

Credit card 3.1 10.4% $0.3 13.3%

Debit card 1.4 4.7% $0.1 5.1%



Phone ACH 1.4 16.4% $0.2 19.4%

Credit card 4.5 52.8% $0.4 46.7%

Debit card 2.2 25.6% $0.2 26.3%



Biller’s website

ACH 12.8 36.2% $1.2 33.5%

Credit card 12.1 34.2% $1.2 35.4%

Debit card 10.0 28.4% $1.0 30.2%




Bank’s website


Third-party website

Total - 0.0% of total $0.0 0.0% of total

TOTAL 104.1 100.0% $9.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,883 one-time bills for home security, Q3 2016



47

Table CC: Home Security Recurring Bill Payment Volume






Biller’s website 54.9 51.9% $5.2 51.3%

Bank’s website 20.8 19.7% $2.0 20.2%

Do not know 2.8 2.6% $0.3 2.6%

TOTAL 105.8 100.0% $10.1 100.0%

Method ACH 54.8 51.8% $5.2 51.6%

Credit card 36.8 34.8% $3.4 33.7%

Debit card 13.3 12.5% $1.4 13.5%


TOTAL 105.8 100.0% $10.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 2,201 recurring bills for home security, Q3 2016

AUTO/CAR LOAN/LEASE PAYMENTS

With an average of US$395 per auto/car loan or lease payment, Americans pay over US$210

billion for this bill payment category. Over 41% of one-time and 54% of recurring auto/car loan

or lease payments are made via the billers’ websites, and 17% of one-time (the third-highest

among all categories) and 27% of recurring auto/car loan or lease payments are made via the

banks’ websites. The percentages of one-time payments made through ACH on billers’ websites

(55.3%) and recurring payments made via ACH (81.5%) are higher than the average across all

categories, and the percentage of recurring payments made via the mail is the lowest among all

categories with 15.1% (Table DD, Table EE).

Table DD: Auto/Car Loan/Lease One-Time Bill Payment Volume






In person Check 8.1 36.5% $3.6 44.6%

Money order - 0.0% $0.0 0.0%

Cash 7.9 35.4% $2.6 31.8%

Credit card 1.2 5.3% $0.4 4.6%



48





Debit card 4.4 20.1% $1.4 17.0%




Mail Check 44.7 78.0% $20.7 83.4%

Money order 6.0 10.5% $2.1 8.6%

Credit card 3.0 5.2% $0.9 3.5%

Debit card 3.1 5.4% $0.9 3.6%



Phone ACH 7.3 33.7% $4.0 45.8%

Credit card 3.5 16.1% $1.2 14.2%

Debit card 10.9 50.2% $3.5 40.0%



Biller’s website

ACH 70.9 55.3% $28.8 58.6%

Credit card 14.4 11.3% $4.6 9.4%

Debit card 41.7 32.5% $15.3 31.1%




Bank’s website


Third-party website


TOTAL 310.9 100.0% $124.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 6,087 one-time bills for auto/car loan/lease payments, Q3 2016



49

Table EE: Auto/Car Loan/Lease Recurring Bill Payment Volume






Biller’s website 113.4 53.9% $46.2 53.7%

Bank’s website 57.5 27.3% $24.4 28.4%

Do not know 7.8 3.7% $4.1 4.8%

TOTAL 210.5 100.0% $86.0 100.0%

Method ACH 171.5 81.5% $73.6 85.5%

Credit card 20.9 9.9% $6.6 7.6%

Debit card 15.2 7.2% $4.9 5.7%


TOTAL 210.5 100.0% $86.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 4,159 recurring bills for auto/car loan/lease payments, Q3 2016

AUTO/CAR INSURANCE

Three times as many auto/car insurance bills are paid at biller sites than at bank sites. The 8% of

one-time auto/car insurance bills paid via phone is at approximately the same level as the

average of 5.8% for all bill categories (Table FF, Table GG).

Table FF: Auto/Car Insurance One-Time Bill Payment Volume






In person Check 10.3 24.1% $1.8 25.3%

Money order 1.6 3.7% $0.3 3.5%

Cash 15.0 35.2% $2.5 34.5%

Credit card 9.8 22.9% $1.7 23.5%

Debit card 6.0 14.0% $0.9 13.2%





50






Mail Check 76.1 83.4% $13.6 84.6%

Money order 6.4 7.1% $1.1 6.7%

Credit card 4.1 4.5% $0.7 4.2%

Debit card 3.8 4.1% $0.6 3.8%



Phone ACH 7.0 20.2% $1.2 20.0%

Credit card 11.1 32.2% $2.0 33.8%

Debit card 15.2 43.9% $2.5 42.6%



Biller’s website

ACH 46.4 27.2% $7.9 27.5%

Credit card 60.7 35.6% $10.3 36.0%

Debit card 59.1 34.6% $9.7 33.9%


Mobile wallet 1.9 1.1% $0.3 1.1%


Bank’s website


Third-party website


TOTAL 430.0 100.0% $73.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 7,142 one-time bills for auto/car insurance, Q3 2016



51

Table GG: Auto/Car Insurance Recurring Bill Payment Volume






Biller’s website 176.4 52.4% $29.1 52.0%

Bank’s website 54.3 16.1% $9.0 16.1%

Do not know 11.4 3.4% $2.0 3.5%

TOTAL 336.9 100.0% $55.9 100.0%

Method ACH 239.6 71.1% $40.1 71.7%

Credit card 54.5 16.2% $9.0 16.1%

Debit card 38.6 11.5% $6.2 11.1%


TOTAL 336.9 100.0% $55.9 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 7,830 recurring bills for auto/car insurance, Q3 2016

VEHICLE REGISTRATION

The 1.5% of vehicle registration one-time payments that are made by phone is the lowest

percentage of payments made by phone among all categories of one-time bill payments, and the

one-time in-person payments percentage of 36.1% greatly exceeds the average for all bill

categories of 14.2% (Table HH, Table II).

Table HH: Vehicle Registration One-Time Bill Payment Volume






In person Check 17.2 39.8% $2.0 40.7%

Money order 0.3 0.6% $0.0 0.6%

Cash 14.3 33.1% $1.6 32.5%

Credit card 3.5 8.2% $0.4 8.1%

Debit card 7.8 18.1% $0.9 18.0%




52







Mail Check 23.7 87.1% $2.8 87.6%

Money order 1.4 5.3% $0.2 5.0%

Credit card 1.2 4.3% $0.1 4.4%

Debit card 0.9 3.3% $0.1 3.0%



Phone ACH 0.5 26.7% $0.0 25.6%

Credit card 0.6 36.3% $0.1 37.5%

Debit card 0.6 32.1% $0.1 32.4%



Biller’s website

ACH 8.2 22.3% $0.9 22.8%

Credit card 15.7 42.7% $1.8 42.8%

Debit card 12.4 33.6% $1.4 33.0%


Mobile wallet 0.4 1.0% $0.0 0.9%


Bank’s website


Third-party website


TOTAL 119.8 100.0% $13.5 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 2,145 one-time bills for vehicle registration, Q3 2016



53

Table II: Vehicle Registration Recurring Bill Payment Volume






Biller’s website 5.0 54.5% $0.5 53.6%

Bank’s website 1.6 17.9% $0.2 17.6%

Do not know 0.4 4.8% $0.0 4.8%

TOTAL 9.1 100.0% $1.0 100.0%

Method ACH 4.6 50.2% $0.5 50.7%

Credit card 3.1 33.7% $0.3 32.7%

Debit card 1.2 13.1% $0.1 13.6%


TOTAL 9.1 100.0% $1.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 364 recurring bills for vehicle registration, Q3 2016

MA JOR CREDIT CARDS

Major credit card bills represent the second-largest bill payment category, with 1.3 billion bills

paid annually adding up to a total of US$719 billion. This bill payment category also represents

the second-lowest one-time in-person payment among all bill categories. Credit card issuers

have done a better-than-average job of getting cardholders to pay bills through the online

channel (46.4% versus the overall average of 35.6% for one-time payments; Table JJ). In addition,

recurring payments made via the banks’ websites are the second-highest among all recurring

payments at 30.4% (Table KK).

Table JJ: Major Credit Cards One-Time Bill Payment Volume






In person Check 7.6 30.8% $4.4 33.3%

Money order 1.3 5.4% $0.5 3.9%

Cash 13.1 52.8% $6.9 52.4%

Credit card 2.1 8.6% $1.0 7.8%



54





Debit card 0.6 2.5% $0.3 2.6%




Mail Check 151.5 87.3% $93.1 88.8%

Money order 13.3 7.7% $7.7 7.3%

Credit card 3.9 2.3% $1.7 1.6%

Debit card 4.9 2.8% $2.4 2.3%



Phone ACH 33.1 55.6% $19.7 57.4%

Credit card 8.2 13.8% $4.6 13.4%

Debit card 17.5 29.3% $9.5 27.6%



Biller’s website

ACH 297.6 64.2% $165.0 65.5%

Credit card 46.4 10.0% $24.9 9.9%

Debit card 116.5 25.1% $60.2 23.9%


Mobile wallet 1.9 0.4% $1.0 0.4%


Bank’s website


Third-party website


TOTAL 998.6 100.0% $561.8 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 19,890 one-time bills for major credit cards, Q3 2016



55

Table KK: Major Credit Cards Recurring Bill Payment Volume






Biller’s website 150.9 50.5% $80.8 51.4%

Bank’s website 90.8 30.4% $46.3 29.5%

Do not know 4.3 1.4% $2.6 1.6%

TOTAL 298.9 100.0% $157.1 100.0%

Method ACH 222.0 74.3% $119.8 76.2%

Credit card 46.1 15.4% $22.2 14.1%

Debit card 26.9 9.0% $13.5 8.6%


TOTAL 298.9 100.0% $157.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 5,244 recurring bills for major credit cards, Q3 2016

RETAIL/DEPARTMENT STORE CREDIT CARDS

Retail/department store credit cards, which include store credit cards specific to stores such as Macy’s or Target, are tied with major credit cards as the second-highest recurring payments made via the banks’ websites at 30.4% (Table LL, Table MM).

Table LL: Retail/Department Store Credit Cards One-Time Bill Payment Volume






In person Check 6.0 19.7% $0.6 18.2%

Money order 0.5 1.8% $0.1 1.9%

Cash 9.3 30.7% $1.1 30.9%

Credit card 4.3 14.3% $0.5 14.8%

Debit card 9.0 29.9% $1.0 30.6%





56






Mail Check 64.9 88.0% $7.0 86.9%

Money order 3.6 4.9% $0.4 5.5%

Credit card 2.6 3.5% $0.3 3.7%

Debit card 2.1 2.9% $0.3 3.2%



Phone ACH 9.9 51.9% $1.1 51.2%

Credit card 2.7 14.1% $0.3 14.3%

Debit card 5.4 28.2% $0.6 29.3%



Biller’s website

ACH 118.2 59.4% $13.5 59.1%

Credit card 26.0 13.1% $3.0 13.1%

Debit card 53.0 26.7% $6.2 27.0%


Mobile wallet 0.5 0.3% $0.1 0.3%


Bank’s website


Third-party website


TOTAL 406.8 100.0% $46.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 7,951 one-time bills for retail/department store credit cards, Q3 2016



57

Table MM: Retail/Department Store Credit Cards Recurring Bill Payment Volume






Biller’s website 50.2 49.1% $5.8 48.8%

Bank’s website 31.0 30.4% $3.7 30.9%

Do not know 1.4 1.4% $0.1 1.2%

TOTAL 102.2 100.0% $12.0 100.0%

Method ACH 67.3 65.9% $7.8 65.0%

Credit card 24.3 23.8% $2.9 24.3%

Debit card 10.6 10.4% $1.3 10.7%


TOTAL 102.2 100.0% $12.0 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,951 recurring bills for retail/department store credit cards, Q3 2016

STUDENT LOANS

Reflecting the fact that the majority of student loan bills are paid by millennials and Gen Xers,

this category’s one-time in-person payments are the lowest among all one-time payments at

2.3%, and this category’s one-time mail payments are the second-lowest across all categories at

11.8%. Checks are also very low in comparison with debit cards (Table NN, Table OO).

Table NN: Student Loans One-Time Bill Payment Volume






In person Check - 0.0% $0.0 0.0%

Money order - 0.0% $0.0 0.0%

Cash 1.3 41.3% $0.3 44.0%

Credit card - 0.0% $0.0 0.0%

Debit card 1.8 58.7% $0.4 56.0%




58







Mail Check 6.1 39.4% $1.4 39.9%

Money order 3.2 20.6% $0.7 20.2%

Credit card 2.8 18.4% $0.6 18.3%

Debit card 2.8 17.8% $0.6 17.6%



Phone ACH 5.2 59.0% $1.2 57.1%

Credit card - 0.0% $0.0 0.0%

Debit card 3.6 41.0% $0.9 42.9%



Biller’s website

ACH 53.0 60.3% $12.3 60.4%

Credit card 12.8 14.5% $3.0 14.7%

Debit card 21.6 24.6% $4.9 24.3%




Bank’s website


Third-party website


TOTAL 131.3 100.0% $30.2 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 2,404 one-time bills for student loans, Q3 2016



59

Table OO: Student Loans Recurring Bill Payment Volume






Biller’s website 71.6 68.2% $16.4 68.0%

Bank’s website 13.8 13.1% $3.2 13.2%

Do not know - 0.0% $0.0 0.0%

TOTAL 105.0 100.0% $24.1 100.0%

Method ACH 79.7 75.9% $18.4 76.3%

Credit card 10.2 9.7% $2.3 9.7%

Debit card 14.5 13.8% $3.3 13.5%


TOTAL 105.0 100.0% $24.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 2,218 recurring bills for student loans, Q3 2016

OTHER LOANS

No other type of bill has a higher percentage of recurring payments made through ACH than

does other loan payments at 90.6%. Because many of these loans are home equity loans that

consumers source from their banks, it’s not a surprise that the percentage of recurring payments

made on banks’ sites is the highest among all categories at 29.4% (Table PP, Table QQ).

Table PP: Other Loans One-Time Bill Payment Volume






In person Check 9.9 42.3% $2.8 36.6%

Money order 0.5 2.2% $0.1 2.0%

Cash 9.0 38.5% $3.2 42.6%

Credit card 1.0 4.4% $0.3 4.0%

Debit card 2.4 10.3% $1.0 13.9%




60







Mail Check 16.6 94.0% $6.6 96.7%

Money order 0.6 3.1% $0.1 1.1%

Credit card - 0.0% $0.0 0.0%

Debit card 0.5 2.9% $0.1 2.2%



Phone ACH 5.0 51.7% $1.8 65.4%

Credit card 1.7 18.0% $0.5 17.3%

Debit card 2.2 22.9% $0.3 11.0%



Biller’s website

ACH 23.4 60.4% $6.5 63.5%

Credit card 1.7 4.5% $0.8 7.8%

Debit card 13.0 33.7% $2.9 28.0%


Mobile wallet 0.6 1.4% $0.1 0.7%


Bank’s website


Third-party website


TOTAL 128.7 100.0% $40.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 2,325 one-time bills for other loans, Q3 2016



61

Table QQ: Other Loans Recurring Bill Payment Volume






Biller’s website 30.7 40.6% $8.8 37.7%

Bank’s website 22.3 29.4% $6.5 28.1%

Do not know 5.9 7.8% $2.0 8.6%

TOTAL 75.7 100.0% $23.2 100.0%

Method ACH 68.6 90.6% $20.7 89.3%

Credit card 3.4 4.4% $1.7 7.5%

Debit card 3.8 5.0% $0.8 3.2%


TOTAL 75.7 100.0% $23.2 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,504 recurring bills for other loans, Q3 2016

FEDERAL INCOME TAXES

One-time direct debit federal income tax payments represent the highest percentage of direct

debit one-time payments across categories at 13.4%. In addition, over 43% of one-time federal

income tax payments are paid by mail, with most mail payments paid by check (Table RR, Table

SS).

Table RR: Federal Income Taxes One-Time Bill Payment Volume






In person Check 2.7 24.1% $2.8 29.3%

Money order 0.1 1.3% $0.3 2.7%

Cash 4.0 36.1% $2.5 26.6%

Credit card 0.9 8.3% $1.1 12.0%

Debit card 3.0 27.4% $2.6 27.6%




62





Mobile wallet 0.3 2.8% $0.2 1.8%


Mail Check 56.1 88.0% $86.3 91.3%

Money order 2.8 4.3% $3.3 3.5%

Credit card 2.1 3.3% $2.2 2.3%

Debit card 2.6 4.1% $2.5 2.7%



Phone ACH 1.4 44.4% $1.2 41.3%

Credit card 0.8 25.4% $0.9 30.3%

Debit card 0.6 20.1% $0.7 22.5%



Biller’s website

ACH 19.1 55.3% $21.7 56.4%

Credit card 5.7 16.6% $7.3 19.0%

Debit card 9.3 26.8% $9.1 23.6%


Mobile wallet 0.2 0.5% $0.2 0.6%


Bank’s website


Third-party website


TOTAL 147.4 100.0% $187.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 2,345 one-time bills for federal income taxes, Q3 2016



63

Table SS: Federal Income Taxes Recurring Bill Payment Volume




Percentage of channel by GDV


Biller’s website 10.1 33.0% $9.5 35.6%

Bank’s website 4.9 16.1% $4.5 17.0%

Do not know 7.0 23.1% $6.4 23.9%

TOTAL 30.5 100.0% $26.7 100.0%

Method ACH 22.9 75.1% $20.9 78.4%

Credit card 4.7 15.3% $4.0 15.0%

Debit card 2.6 8.6% $1.6 6.0%


TOTAL 30.5 100.0% $26.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,090 recurring bills for federal income taxes, Q3 2016

STATE INCOME TAXES

Similar to federal income taxes, one-time direct debit state income tax payments represent one

of the highest percentages of direct debit one-time payments across bill categories at 13.0%.

Nearly half of one-time federal income tax payments are paid by mail at 43.5%, with nearly 90%

of those payments paid by check (Table TT, Table UU).

Table TT: State Income Taxes One-Time Bill Payment Volume






In person Check 1.9 17.5% $0.8 23.9%

Money order 0.3 2.7% $0.1 2.0%

Cash 4.0 37.5% $1.2 34.1%

Credit card 1.2 11.0% $0.4 10.7%

Debit card 3.3 31.3% $1.0 29.3%




64







Mail Check 47.6 89.8% $22.5 91.3%

Money order 3.7 6.9% $1.3 5.4%

Credit card 0.6 1.1% $0.3 1.2%

Debit card 0.9 1.7% $0.4 1.5%



Phone ACH 1.0 40.0% $0.3 31.1%

Credit card 0.6 23.9% $0.2 25.6%

Debit card 0.9 36.0% $0.4 43.3%



Biller’s website

ACH 14.3 51.9% $5.5 52.8%

Credit card 4.2 15.3% $1.8 17.2%

Debit card 8.6 31.1% $3.0 28.6%


Mobile wallet 0.2 0.6% $0.1 0.8%


Bank’s website


Third-party website


TOTAL 121.8 100.0% $50.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,861 one-time bills for state income taxes, Q3 2016



65

Table UU: State Income Taxes Recurring Bill Payment Volume






Biller’s website 9.0 32.9% $2.9 33.2%

Bank’s website 5.9 21.4% $2.0 22.3%

Do not know 5.8 21.2% $1.9 21.4%

TOTAL 27.4 100.0% $8.8 100.0%

Method ACH 20.8 75.8% $6.8 77.0%

Credit card 3.8 14.0% $1.1 12.2%

Debit card 2.1 7.6% $0.7 7.6%


TOTAL 27.4 100.0% $8.8 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,032 recurring bills for state income taxes, Q3 2016

PARKING T ICKETS/COUR T FEES AND F INES

Over 85 million parking tickets/court fees and fines are paid in the United States, with most of

them paid as a one-time payment. Unlike most other payment categories, cash is used for 58.5%

of in-person payments, and checks are used for 63.7% of payments made via the mail (Table VV,

Table WW).

Table VV: Parking Tickets/Court Fees and Fines One-Time Bill Payment Volume






In person Check 2.2 9.1% $0.1 12.3%

Money order 1.3 5.6% $0.1 5.1%

Cash 14.0 58.5% $0.7 55.9%

Credit card 3.4 14.2% $0.2 14.1%

Debit card 3.0 12.7% $0.1 12.6%




66







Mail Check 10.1 63.7% $0.7 68.8%

Money order 2.8 17.9% $0.1 15.1%

Credit card 1.4 8.9% $0.1 7.6%

Debit card 1.5 9.6% $0.1 8.5%



Phone ACH 0.4 11.5% $0.0 14.7%

Credit card 0.8 23.5% $0.0 24.4%

Debit card 1.9 59.2% $0.1 53.5%



Biller’s website

ACH 1.6 8.8% $0.1 10.2%

Credit card 8.6 46.2% $0.4 45.0%

Debit card 8.4 45.0% $0.4 44.7%




Bank’s website


Third-party website


TOTAL 68.3 100.0% $3.6 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,131 one-time bills for parking tickets/court fees and fines, Q3 2016



67

Table WW: Parking Tickets/Court Fees and Fines Recurring Bill Payment Volume






Biller’s website 7.2 42.5% $0.3 41.9%

Bank’s website 3.6 21.2% $0.2 22.7%

Do not know 0.9 5.4% $0.0 5.2%

TOTAL 17.0 100.0% $0.8 100.0%

Method ACH 7.3 42.6% $0.4 44.1%

Credit card 6.9 40.6% $0.3 38.2%

Debit card 2.5 14.5% $0.1 15.7%


TOTAL 17.0 100.0% $0.8 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 446 recurring bills for parking tickets/court fees and fines, Q3 2016

UNIVERSIT IES/COLLEGE S/TRADE SCHOOLS

Nearly half of one-time bills paid to universities/colleges/trade schools are paid via the billers’ websites. Among those, ACH and debit card payments account for most payment methods at 46.6% and 34%, respectively (Table XX, Table YY).

Table XX: Universities/Colleges/Trade Schools One-Time Bill Payment Volume






In person Check 1.4 20.2% $1.9 21.4%

Money order 0.6 8.1% $0.6 6.1%

Cash 1.7 23.6% $2.2 24.0%

Credit card 1.7 23.9% $2.2 24.2%

Debit card 1.4 20.2% $1.9 21.4%


Mobile wallet 0.3 4.1% $0.3 3.0%



68






Mail Check 4.5 68.1% $10.8 84.6%

Money order 0.6 8.9% $0.6 4.3%

Credit card 0.9 14.1% $0.9 6.8%

Debit card 0.6 8.9% $0.6 4.3%



Phone ACH 0.9 37.6% $0.8 29.9%

Credit card 0.8 36.3% $1.4 49.4%

Debit card 0.3 13.6% $0.3 10.7%



Biller’s website

ACH 9.5 46.6% $14.7 47.0%

Credit card 4.0 19.4% $8.3 26.5%

Debit card 6.9 34.0% $8.3 26.5%




Bank’s website


Third-party website


TOTAL 43.8 100.0% $65.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 742 one-time bills for universities/colleges/trade schools, Q3 2016



69

Table YY: Universities/Colleges/Trade Schools Recurring Bill Payment Volume






Biller’s website 8.6 46.2% $9.8 48.2%

Bank’s website 5.1 27.3% $5.4 26.2%

Do not know 0.3 1.6% $0.3 1.4%

TOTAL 18.6 100.0% $20.4 100.0%

Method ACH 12.3 66.2% $14.5 70.9%

Credit card 3.7 19.7% $3.5 16.9%

Debit card 2.6 14.1% $2.5 12.2%


TOTAL 18.6 100.0% $20.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 465 recurring bills for universities/colleges/trade schools, Q3 2016

PUBLIC/PRIVATE PRESC HOOL/ ELEMENTARY SCHOOL/ SECONDARY SCHOOL

Unlike most other payment categories, in-person payments account for nearly half of all one-

time payments for public/private preschool/elementary school/secondary school, and within

that, checks represent 46.2% (Table ZZ, Table AAA).

Table ZZ: Public/Private Preschool/Elementary School/Secondary School One-Time Bill Payment Volume






In person Check 15.3 46.2% $7.2 50.8%

Money order 2.6 7.8% $0.8 5.5%

Cash 9.3 28.2% $4.2 29.5%

Credit card 1.6 4.8% $0.7 4.7%

Debit card 3.8 11.6% $1.2 8.7%




70







Mail Check 8.5 88.0% $4.9 89.7%

Money order 0.4 3.8% $0.2 4.2%

Credit card 0.3 3.6% $0.2 4.0%

Debit card 0.4 4.6% $0.1 2.1%



Phone ACH 0.8 25.8% $0.3 23.2%

Credit card 1.5 48.4% $0.8 53.7%

Debit card 0.3 11.3% $0.2 15.2%



Biller’s website

ACH 4.7 28.0% $2.1 27.4%

Credit card 4.8 28.7% $2.0 26.2%

Debit card 6.9 41.3% $3.3 43.5%




Bank’s website


Third-party website


TOTAL 72.4 100.0% $33.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,356 one-time bills for public/private preschool/elementary school/secondary school, Q3 2016



71

Table AAA: Public/Private Preschool/Elementary School/Secondary School Recurring Bill Payment Volume






Biller’s website 12.9 42.9% $5.1 40.8%

Bank’s website 7.5 25.0% $3.7 29.7%

Do not know 0.8 2.6% $0.3 2.6%

TOTAL 30.2 100.0% $12.5 100.0%

Method ACH 14.8 49.1% $7.0 56.4%

Credit card 11.6 38.3% $4.2 33.8%

Debit card 3.8 12.7% $1.2 9.8%


TOTAL 30.2 100.0% $12.5 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 703 recurring bills for public/private preschool/elementary school/secondary school, Q3 2016

CELLPHONES/WIRELESS PHONES

It is no surprise that the number of cellphone/wireless phone bills have increased greatly over

the last few years, making it now the fourth-largest bill category with 1.2 billion bills. Relative to

other types of bills, a high percentage of one-time cellphone bills are paid online at biller sites

(51.5%) and by debit and credit card (45.8% and 29.3%, respectively). In addition, among the

types of bills included in the study, cellphone bills showed the lowest percentage of bills paid

through the mail, with 11.6% for one-time payments (Table BBB, Table CCC).

Table BBB: Cellphone/Wireless Phone One-Time Bill Payment Volume






In person Check 8.8 10.6% $0.8 10.8%

Money order 1.2 1.4% $0.1 1.5%

Cash 49.0 59.2% $4.6 59.4%

Credit card 5.8 7.0% $0.5 6.9%



72





Debit card 17.3 20.9% $1.6 20.5%




Mail Check 70.6 81.4% $6.5 80.9%

Money order 6.8 7.9% $0.7 8.5%

Credit card 3.4 3.9% $0.3 3.9%

Debit card 5.4 6.2% $0.5 6.1%



Phone ACH 9.1 16.8% $0.9 16.7%

Credit card 11.8 21.8% $1.1 21.5%

Debit card 26.6 49.3% $2.5 49.7%



Biller’s website

ACH 84.9 22.1% $8.0 22.0%

Credit card 112.5 29.3% $10.5 28.8%

Debit card 176.0 45.8% $16.8 46.2%


Mobile wallet 4.0 1.0% $0.4 1.1%


Bank’s website


Third-party website


TOTAL 745.9 100.0% $70.3 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 14,248 one-time bills for cellphones/wireless phones, Q3 2016



73

Table CCC: Cellphone/Wireless Phone Recurring Bill Payment Volume






Biller’s website 282.8 65.1% $26.6 65.6%

Bank’s website 60.0 13.8% $5.6 13.8%

Do not know 11.3 2.6% $1.1 2.6%

TOTAL 434.4 100.0% $40.6 100.0%

Method ACH 195.5 45.0% $18.3 45.1%

Credit card 162.1 37.3% $15.1 37.1%

Debit card 67.5 15.5% $6.3 15.6%


TOTAL 434.4 100.0% $40.6 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 8,682 recurring bills for cellphones/wireless phones, Q3 2016

L IFE INSURANCE

Among all types of bills, life insurance bills showed one of the highest percentages of bills paid

through the mail, with 38.3% for one-time payments. For mail-in one-time payments, check

payments are exceptionally high at 80.8%, and for recurring payments, ACH represents 80.2%

(Table DDD, Table EEE).

Table DDD: Life Insurance One-Time Bill Payment Volume






In person Check 3.3 20.9% $0.4 20.3%

Money order 1.3 8.0% $0.2 7.5%

Cash 2.6 16.5% $0.3 15.4%

Credit card 2.3 14.4% $0.3 15.1%

Debit card 6.4 40.2% $0.9 41.7%




74







Mail Check 67.6 80.8% $9.4 80.5%

Money order 7.5 9.0% $1.1 9.0%

Credit card 3.6 4.3% $0.5 4.4%

Debit card 4.1 4.9% $0.6 5.0%



Phone ACH 5.5 42.6% $0.8 43.5%

Credit card 3.5 26.8% $0.5 25.9%

Debit card 3.6 27.5% $0.5 27.9%



Biller’s website

ACH 26.3 44.1% $3.7 44.1%

Credit card 15.3 25.6% $2.2 26.2%

Debit card 17.6 29.5% $2.4 28.9%




Bank’s website


Third-party website


TOTAL 218.5 100.0% $30.4 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 3,280 one-time bills for life insurance, Q3 2016



75

Table EEE: Life Insurance Recurring Bill Payment Volume






Biller’s website 113.9 42.5% $15.6 42.6%

Bank’s website 43.0 16.1% $5.7 15.7%

Do not know 28.9 10.8% $4.0 10.8%

TOTAL 267.8 100.0% $36.7 100.0%

Method ACH 214.7 80.2% $29.5 80.4%

Credit card 35.6 13.3% $4.8 13.2%

Debit card 16.6 6.2% $2.2 6.1%


TOTAL 267.8 100.0% $36.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 6,107 recurring bills for life insurance, Q3 2016

HEALTH INSURANCE

Over two-thirds of health insurance one-time bill payments, which are payments paid specifically

by the individual and not through payroll deduction, are made via the billers’ websites and by

mail. Eighty-seven percent of the mail-in payments are made by check, and 78% of recurring

health insurance payments are made via ACH (Table FFF, Table GGG).

Table FFF: Health Insurance One-Time Bill Payment Volume






In person Check 4.3 27.1% $0.9 30.5%

Money order 0.5 3.1% $0.1 3.2%

Cash 3.9 24.5% $0.8 26.5%

Credit card 2.5 16.0% $0.4 14.6%

Debit card 3.1 19.7% $0.5 16.5%




76





Mobile wallet 0.5 3.3% $0.1 2.7%


Mail Check 66.1 87.0% $15.6 88.3%

Money order 4.5 6.0% $1.0 5.6%

Credit card 2.8 3.7% $0.6 3.6%

Debit card 2.5 3.4% $0.4 2.5%



Phone ACH 4.5 25.4% $1.0 24.8%

Credit card 6.7 37.7% $1.5 37.5%

Debit card 6.5 36.9% $1.5 37.7%



Biller’s website

ACH 31.6 33.3% $7.3 35.0%

Credit card 26.3 27.7% $5.9 28.5%

Debit card 35.1 36.9% $7.3 34.8%


Mobile wallet 1.0 1.1% $0.2 0.8%


Bank’s website


Third-party website


TOTAL 272.5 100.0% $60.7 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 4,891 one-time bills for health insurance, Q3 2016



77

Table GGG: Health Insurance Recurring Bill Payment Volume






Biller’s website 158.4 47.0% $34.4 46.6%

Bank’s website 52.8 15.7% $11.1 15.1%

Do not know 44.6 13.2% $10.3 14.0%

TOTAL 337.1 100.0% $73.8 100.0%

Method ACH 263.1 78.1% $59.3 80.3%

Credit card 52.6 15.6% $10.6 14.3%

Debit card 16.4 4.9% $2.9 4.0%


TOTAL 337.1 100.0% $73.8 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 6,733 recurring bills for health insurance, Q3 2016

MEDICAL

In this study, medical payments include payments related to hospital, laboratory, doctor, or

dentist bills other than copays. Similar to health insurance payments, a large number of one-

time medical bill payments are made via the billers’ websites and by mail. Eighty percent of the

mail-in payments are made by check, and 71.5% of recurring medical payments are made via

ACH (Table HHH, Table III).

Table HHH: Medical One-Time Bill Payment Volume






In person Check 7.6 13.3% $1.2 13.1%

Money order - 0.0% $0.0 0.0%

Cash 11.6 20.2% $1.9 20.3%

Credit card 21.3 37.2% $3.6 37.6%

Debit card 15.6 27.3% $2.6 27.2%




78







Mail Check 89.4 80.4% $14.8 80.1%

Money order 8.0 7.2% $1.4 7.3%

Credit card 7.8 7.0% $1.3 7.1%

Debit card 6.0 5.4% $1.0 5.4%



Phone ACH 4.0 15.1% $0.7 15.2%

Credit card 9.3 34.7% $1.6 35.3%

Debit card 11.8 44.2% $1.9 43.6%



Biller’s website

ACH 16.2 19.3% $2.7 19.5%

Credit card 37.3 44.5% $6.3 45.0%

Debit card 28.4 33.9% $4.7 33.3%


Mobile wallet 0.8 0.9% $0.1 0.9%


Bank’s website


Third-party website


TOTAL 332.8 100.0% $55.2 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 6,149 one-time bills for medical, Q3 2016



79

Table III: Medical Recurring Bill Payment Volume






Biller’s website 37.1 46.1% $6.1 46.1%

Bank’s website 14.7 18.2% $2.4 18.4%

Do not know 7.2 9.0% $1.2 9.0%

TOTAL 80.6 100.0% $13.1 100.0%

Method ACH 57.6 71.5% $9.4 71.4%

Credit card 14.7 18.2% $2.4 18.3%

Debit card 7.1 8.8% $1.2 8.9%


TOTAL 80.6 100.0% $13.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,734 recurring bills for medical, Q3 2016

CHARITABLE DONATIONS

Only one in seven charitable donations is made on a recurring basis, accounting for only 12% of

the GDV for this bill payment category (Table KKK). Among all types of bills, charitable donations

showed one of the lowest percentages of bills paid via phone, with only 1.7% for one-time

payments. One-time mail payments are quite high compared to other categories, representing

37.1% of one-time payments, with 94.8% of the payments made by check (Table JJJ).

Table JJJ: Charitable Donations One-Time Bill Payment Volume






In person Check 62.6 50.0% $9.9 50.5%

Money order 1.9 1.5% $0.3 1.5%

Cash 51.8 41.4% $8.1 41.2%

Credit card 4.1 3.3% $0.7 3.5%

Debit card 3.6 2.9% $0.5 2.7%




80





Mobile wallet 1.1 0.8% $0.1 0.7%


Mail Check 151.8 94.8% $23.8 94.6%

Money order 3.4 2.1% $0.6 2.3%

Credit card 4.0 2.5% $0.6 2.4%

Debit card 1.0 0.6% $0.2 0.7%



Phone ACH - 0.0% $0.0 0.0%

Credit card 4.4 60.9% $0.7 62.3%

Debit card 2.2 31.2% $0.4 29.6%



Biller’s website

ACH 15.7 17.0% $2.5 16.9%

Credit card 45.7 49.3% $7.1 48.9%

Debit card 27.8 29.9% $4.4 30.2%


Mobile wallet 3.1 3.3% $0.5 3.5%


Bank’s website


Third-party website


TOTAL 431.4 100.0% $67.9 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 7,736 one-time bills for charitable donations, Q3 2016



81

Table KKK: Charitable Donations Recurring Bill Payment Volume






Biller’s website 30.5 52.4% $4.8 53.2%

Bank’s website 8.8 15.1% $1.4 15.9%

Do not know 5.0 8.6% $0.7 8.0%

TOTAL 58.2 100.0% $9.1 100.0%

Method ACH 28.7 49.3% $4.6 50.7%

Credit card 26.0 44.7% $4.0 43.6%

Debit card 3.5 6.1% $0.5 5.7%


TOTAL 58.2 100.0% $9.1 100.0%

Source: Aite Group survey of 2,429 U.S. consumers, 1,613 recurring bills for charitable donations, Q3 2016



82

CONCLUSION

Based on our study of the bill payment behaviors of U.S. consumers, Aite Group concludes the

following:

Customer demographics and behaviors are shifting. Bill payment behaviors and

methods vary greatly across generations and across the various bill payment

categories. By and large, the always-connected, mobile-first customers are more

likely to select their various service providers for richer online or mobile capabilities.

Banks and billers need to have a long-term view and dedicate resources to digital

channels. Consumer behavior at large is slow to change, and many still pay bills

through the mail, in person, and by check. Nevertheless, consumer behavior is

clearly shifting. By investing now and encouraging consumers to migrate to self-

service channels, banks and billers will reap the benefits later.

Banks and billers should attempt to remove frictions and barriers from bill

payment activities. Benefitting from a shorter and easier payment process,

consumers are far more likely to complete such processes via automated channels,

ultimately resulting in higher consumer satisfaction.

Faster payments offer a great opportunity to banks and billers. While consumer

ACH bill payments already account for over 46% of total bill payments, there is an

opportunity for payment providers at large to develop cost-effective, innovative

payment solutions that take advantage of same-day processing, which will help

meet consumers’ expectations for immediacy.

Banks and billers should look to their payment vendors and partners. These

partners can help to fill out banks’ and billers’ product offerings, help them to

develop and implement new payment-related solutions, and even help to educate

the organization on what products and services have been successfully implemented

in other markets around the globe.



83

RELATED AITE GROUP RESEARCH

Top 10 Trends in Retail Banking & Payments, 2016: The Quest to Reduce Friction, January 2016.

Business-to-Consumer Disbursements: The Check’s … in the Mail?, December 2015.

Sizing Person-to-Person Payments in the United States, November 2015.

Sizing E-Bill Adoption in the United States, April 2014.

How Americans Pay Their Bills: Sizing and Forecasting Bill Pay Channels and Methods, 2013-

2016, September 2013.

http://aitegroup.com/report/top-10-trends-retail-banking-payments-2016-quest-reduce-friction

http://aitegroup.com/report/business-consumer-disbursements-check%E2%80%99s-%E2%80%A6-mail

http://aitegroup.com/report/sizing-person-person-payments-united-states

http://aitegroup.com/report/sizing-e-bill-adoption-united-states





84

ABOUT AITE GROUP

Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on

business, technology, and regulatory issues and their impact on the financial services industry.

With expertise in banking, payments, insurance, wealth management, and the capital markets,

we guide financial institutions, technology providers, and consulting firms worldwide. We

partner with our clients, revealing their blind spots and delivering insights to make their

businesses smarter and stronger. Visit us on the web and connect with us on Twitter and

LinkedIn.

AUTHOR INFORMATION

David Albertazzi

+1.617.398.5036

[email protected]

Research design and data:

Judy Fishman +1.617.338.6067

[email protected]

Alina Basu +4.0742.278.879

[email protected]

CONTACT

For more information on research and consulting services, please contact:

Aite Group Sales +1.617.338.6050

[email protected]

For all press and conference inquiries, please contact:

Aite Group PR +1.617.398.5048

[email protected]

For all other inquiries, please contact:

[email protected]

http://aitegroup.com/

https://twitter.com/AiteGroup

https://www.linkedin.com/company/aite-group

mailto:[email protected]








85

ABOUT ACI WORLDWIDE

ACI Worldwide, the Universal Payments (UP) company, powers electronic payments for more

than 5,100 organizations around the world. More than 1,000 of the largest financial institutions

and intermediaries as well as thousands of global merchants rely on ACI to execute US$14 trillion

each day in payments and securities. In addition, myriad organizations utilize our electronic bill

presentment and payment services. Through our comprehensive suite of software and SaaS-

based solutions, we deliver real-time, immediate payments capabilities and enable the industry’s

most complete omnichannel payments experience. To learn more about ACI, please

visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.

https://www.aciworldwide.com/

How Americans Pay Their Bills: Sizing Bill Pay … · How Americans Pay Their Bills: Sizing Bill...

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