Fiserv: Mobile bill payments on the rise in US, Americans are now payment "omnivores"

The fifth annual Billing Household Survey, which was carried out by US financial services technology company Fiserv, indicates that Americans are now payment “omnivores” and use multiple channels to pay various bills. These include online payments at bank and company (biller) sites, paper cheques sent via mail, walk-in payments made in person, phone payments and mobile payments made via apps or mobile web browsers. According to the research, three out of four US consumers use at least two bill payment methods each month, and more than 20 percent of consumers change the ways in which they pay their bills from month to month, for reasons that include availability of funds, payment due date and amount owed.

Mobile bill payments grow fast
Payments initiated via a mobile device – such as through an app – still make up a relatively small percentage of bill payments overall, the survey found, but have gained momentum year to year. Eight percent of US online households - representing 8 million total households – have paid at least one monthly bill this way, up from 6 percent in 2011. In addition, 3 percent of infrequent and non-internet users – representing 720,000 total US households – were found to be using mobile bill payment. Growth was most notable among smartphone owners, with mobile bill payments among this group jumping 41 percent during the previous year. In addition, one in five US consumers who own a tablet paid a bill through a bank or biller site using their tablet.

The drivers for mobile bill payment among consumers who have made them were found to include the fact that mobile as a payment option is seen as saving time (50 percent), as well as the fact that the mobile channel offers anytime access (44 percent) and is most convenient when on the go (43 percent). When asked what mobile billing and payment capability they are most interested in, nearly one in three US respondents indicated they are very interested in viewing and paying bills from their smartphone.

Key differences: online households vs. infrequent internet users
Online bill payment at financial institution and biller websites has become the norm among US online households, with 73 percent of those who access the internet at least once a week now paying at least one bill online each month. These consumers are not only paying bills online, but they are also receiving them there, with 48 percent of US online households receiving at least one electronic bill (e-bill). E-bill usage is also having a positive effect on customer relationships, with 37 percent of consumers who receive e-bills saying it improved their relationship with the company from which they received the bill.

In contrast, infrequent internet users, defined in the survey as those who accessed the internet less than once a week, and non-Internet users, are still reliant on cheques when paying bills. Of this group, 75 percent pay at least one bill via cheque each month.