Fact-Checking Bill Pay Assumptions—Three Data-Driven Paths Forward

Many bankers are conflicted about bill pay. The user experience is stale. Bill pay isn’t a digital banking differentiator like flashy financial fitness features. Adoption is subpar at many banks and credit unions, but the bill pay costs keep coming. That leaves FIs with a tough strategic decision: Overhaul it to drive engagement and satisfaction, eliminate it for the cost savings, or leave it as is and accept the status quo?

Javelin’s assessment based on overall adoption, Gen Z behavior, channel preferences, and satisfaction data shows that digital banking strategists should re-evaluate common misconceptions about how many consumers use bill pay, the channels they prefer to use, and how satisfied they are with the experience. The upshot is that digital banking strategies will be dictated by an institution’s goals and desire to stand out, not by fluctuations in consumer preferences. FIs that seek to combine digital engagement and interchange from bill-direct payments must blaze a trail that leads to innovative mobile-first bill pay.

Key questions discussed in this report:

• What are some of the most common misconceptions bankers hold about bill pay?
• How many consumers use bill pay, and do they use online or mobile bill pay more?
• How do consumers prefer to pay bills—using bill pay, directly at a biller, online or mobile?
• What are the implications of bill pay trends and preferences? 
• Is it necessary for banks and credit unions to provide bill pay?