Mobile Bill Pay: Strategies to Grow Adoption and Build Engagement

Author(s):
Mark Schwanhausser

Overview

The ability to pay bills on smartphones and tablets has the potential to transform the dreaded American chore of paying bills. There’s a lot at stake for financial institutions (FIs), billers, third-party players, technology vendors, and consumers alike. Americans paid an estimated $3.3 trillion annually for just seven important bills in 2014, with mobile payments accounting for $95 billion from the 26% of Americans who made mobile payments. This report, which builds on Javelin’s 2014 Online Banking and Bill Payment Forecast 2014–2019, provides a market-sizing for bill payment, benchmarks the growth in mobile payment, and spotlights key trends and recommendations for upgrading and marketing bill payment services to win over holdouts and consumers as defined by Javelin’s Moneyhawks™ segmentation.

Primary Questions:

How much do Americans spend annually for seven basic bills (utility bills, mobile phone bills, major credit cards usable anywhere, store-branded credit cards, auto loans, mortgages, and student loans)?
How many Americans pay bills on mobile devices?
What will it take to motivate more Americans to make mobile bill payments? What obstacles keep them from trying it?
Why should billers care about mobile bill payment?
How can FIs, billers, and third-party services tailor mobile bill payment for their most profitable customers?

Companies Mentioned:

ACI Worldwide, Allied Payment Network, Bank of America, BB&T, BBVA Compass, Capital One, Citibank, Citizens Bank, Comerica Bank, Fifth Third Bank, First Abilene Federal Credit Union, First Financial Bank, Fiserv, JPMorgan Chase, KeyBank, Kofax, M&T Bank, Malauzai Software, Mint Bills or Check (Intuit), Mitek Systems, Navy Federal Credit Union, PNC Bank, Regions Bank, Sovereign/Santander, SunTrust Bank, TCF Bank, Top Image Systems, US Bank, USAA, Wells Fargo

Press Release
Mobile Bill Pay is Small but Growing