The Unprofitable Business Everyone Wants to Join
Bank Technology News (08/00) Vol. 13, No. 8 p.1; O'Sullivan, Orla

Although e-billing has made only marginal gains over the last four years, the up-and-coming industry has captured the imagination of the banking industry. The percentage of American households using online bill payment has risen since 1996 from 2.5 million customers to about 4 million. Worse still, online bill presentment is not likely to replace paper billing. Prognosticators believe that just 50 percent of all consumer bills will be presented online, and only 3 percent of consumers will view their bills online. Part of the problem stems from the fact that many consumers have not been extended the option to receive bills online. Tech vendors are trying to correct the problem by offering to scan and post consumers' bills on Web sites where consumers can issue payment instructions online. Still, the dismal performance has not curbed the banking industry's hopes of harnessing e-billing's vast potential.


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