SAN FRANCISCO (9/29/08)--Financial institutions must incorporate expedited payments now or risk losing $5 billion in fees to third-party billers, a new study finds. The Javelin Strategy and Research study indicated that 32 million consumers actively use online banking bill payment in the U.S., and the volume of expedited bill payments will reach 400 million transactions by 2013. “Most consumers currently initiate expedited bill payments directly with the biller versus their financial institution,” said James Van Dyke, Javelin president. “Financial institutions have the opportunity to directly offer expedited payment services, reaping fees and strengthening their payments franchise.” The report also indicated that 45% of existing mobile bankers use expedited payments at least once a month and certain age groups are poised to drive mobile channel growth. “While the online channel is primarily used for expedited payments, mobile could represent incremental value to banking and bill pay customers,” said Bruce Cundiff, Javelin director of payments research and consulting. Consumers are accepting higher fees associated with expediting bill payments in lieu of facing costly late payment charges, Javelin said. The price of expedited payments could double over the next five years--to $16 in 2013.
ST. PETERSBURG, Fla. (9/29/08)--Credit unions enrolled in PSCU Financial Services’ Bill Pay Summer Beat the Heat sweepstakes added 24,100 subscribers and 74,000 incremental payments during the two-month promotion in June and July. There also was a 3.6% increase in subscribers making more than three payments per month. The sweepstakes offered a grand prize of $10,000, a $1,000 first prize, and an iPod NANO for five second-place winners. Each credit union was guaranteed one $100 winner. Each subscriber that made three online bill payments in a month was entered into the contest and received one entry for each payment made during the month. There were 2.3 million entries and prize winners were drawn randomly. Tami Maggio, Meriwest CU, San Jose, Calif., won the $10,000 prize. Other winners were from Stanford FCU, Palo Alto, Calif.; Red Canoe CU, Longview, Wash.; and Telhio CU, Columbus, Ohio. PSCU is a credit union service organization that serves 1,100 financial institutions nationwide.