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.