Electronic bill payments show marginal growth (U.S)
The share of bills consumers pay the old-fashioned way via the regular mail continues to decline, according to the U.S. Postal Service’s most recent annual study about what goes through the mails. But despite the gains of electronic bill payments, the availability of free bill-pay service at most banks may be slowing what had been a rapid run-up in the volume of electronically processed bill payments as banks dropped their fees. As a result, billers likely will continue to send many paper bills and consumers will pay them by mail for the foreseeable future.
Results from the Postal Service’s recently released Household Diary Study for fiscal year 2007 show the percentage of bills paid by electronic methods primarily automatic deductions from checking accounts, and the Internet increased from 19 pct in 2003 to 32 pct in 2007. In contrast, bills paid by mail decreased from 74 pct to 62 pct of total payments during the same time.
Looked at another way, paper bill payments now account for less than a quarter of what the Postal Service calls “transactions mail” a category that includes bills, statements, confirmations, orders, and rebates. “Electronic diversion continues to erode the volume of mail payments in favor of online payments, automatic deductions from bank accounts, and other electronic methods of bill payment,” says the survey report. “As a result, the share of bills paid by mail dropped from 25.3 pct of total mail transactions in 2005 to 23.6 pct in 2007.”
