Biller Direct Payment Competition Seen Heating Up
A new report from Aite Group said biller direct payment adoption continues to grow while competition heats up among vendors of the multi-channel offering.
The Boston-based think firm based its conclusion on interviews it conducted in late 2010 and early this year with a group of payment presentation technology vendors.
Aite Group now estimates that nearly 26% of consumers will make payments at billers’ websites by 2013, which it says is directly proportional to a drop in payments by mail. Aite predicts mail will account for 31% of bill payment volume by then, down from the 33% it predicts for this year.
In addition to biller site and checks in the mail, consumers are also using mobile, phone, direct debit, financial institution website and in-person channels to pay their bills, and competition is intensifying, the report says.
"In the coming few years, Aite Group expects vendors to compete on quality of customer service, overall execution, functionalities, and ability to deliver solutions that are easily customizable by vertical and biller size," says Kunal Pandya, senior analyst with Aite Group. "Vendors are also expected to compete on their ability to drive adoption using presentment capabilities and mobile email payments."
Vendors studied in the report included Alacriti, Aliaswire, BillingTree, FIS, Fiserv, Online Resources and Tier Technologies, Aite Group said.