ATLANTA — For the first time ever, a survey has found that more online consumers pay their bills online than write checks.
Sponsored by the Checkfree Corporation, the January 2007 survey polled 2,018 online respondents who were at least partly responsible for household bill payments. Respondents are representatives of the estimated 82.5 million U.S. households using the Internet, and the margin of error is plus or minus 2%.
The survey found that a growing number of consumers are turning to their computers, rather than their checkbooks, to pay household bills and that paying bills online has become a mainstream activity among U.S. households.
The trend has been stronger in the Western states, followed by the South, which may be driven in part by higher broadband penetration rates and online banking use in these regions.
The survey found paperless bills appear to be catching on as consumers recognize their convenience, security and environmental benefits.
"The fact that online bill payment has overtaken paper checks shows that people feel secure managing their finances online," said Gwenn Bezard, research director with Aite Group. "Once considered a nice-to-have add-on, online bill payment is now the foundation of the Web banking user experience. I expect further growth in this area due to Generation Y's greater reliance on technology in their everyday lives as they move into early adulthood, and the increasing adoption of electronic bills, especially as the environment becomes a mainstream issue."
Across the nation, consumers who pay at least one bill online per month rose to 74%, compared to 69% of respondents in a December 2005 survey. Consumer adoption of online bill payment has more than doubled since January 2002, when only 37% of online households reported paying at least one bill online.
The West ranks first in overall adoption of electronic billing and payment, with 78% of online households paying their bills online, according to the survey. The South ranks second, with 76%. The Northeast ranked third in online bill payment, with 72%, and the Midwest trailed, with 71%.
The survey found that American consumers increasingly rely on online bill payment services to save time. Eighty-five percent of survey respondents said, "paying bills online is faster."
But the rising cost of mailing paper checks to pay bills also may be helping fuel the trend. Some 85% of consumers surveyed said, "paying bills online saves the paper, stamps and the hassle of paying bills by check."
A first-class stamp cost 37 cents in 2005, compared to the current price of 39 cents. An approved postal rate increase will bring the cost of a first-class stamp to 41 cents on May 14, 2007. But, the vast majority of consumers–93%–reported that they get the online bill payment service for free from their banks or credit unions.
"Electronic bill payment is not only a great way for consumers to manage their cash flow and ensure on-time payments, but it is also an often overlooked way to maintain a tidier, more organized home or home office," said Standolyn Robertson, president-elect of the National Association of Professional Organizers.
"By opting to receive electronic bills, rather than paper bills, consumers can reduce or eliminate those stacks of bills near the front door, on the kitchen table or at their desks, and there is no bill to misplace or drop behind the couch. By simply signing up at their local banks or portals, usually for free, consumers can give themselves the gift of time and the peace of mind that comes from organization." –dmorrison@cutimes.com
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