Banks Must Add Expedited Payments Now or Lose $5 Billion in Fees to Billers

Research and Markets (http://www.researchandmarkets.com/research/551b1c/2008_expedited_pay) has announced the addition of Javelin Strategy & Research's new report "2008 Expedited Payments Forecast: Banks Must Add Expedited Payments Now or Lose $5 Billion in Fees to Billers" to their offering.

Expedited payments, which mean same day or next day bill payment services, represent a viable recurring revenue source for billers, financial institutions, and third parties. This report presents Javelin’s annual forecast model for expedited payments, building upon four years of solid historical consumer data. Based upon the current revenue sharing split between biller and banks, financial institutions stand to lose $5 billion in fee income over the next five years, unless institutions act now to influence consumer habits. This report includes an analysis of the likelihood of growth in consumer usage of expedited payments, channel selection, willingness to pay fees, and primary sources for seeking out expedited payments services. Primary marketing strategies and key consumer demographics are defined for 2009.

Primary Questions

• What effect will economic conditions have on expedited payments revenue and consumer propensity to use expedited payments services?
• How much will consumers save in late fees by executing expedited payments?
• How much do consumers pay for expedited payments?
• With whom do consumers initiate expedited payments—banks or billers?
• Which channels do consumers choose for expedited payments?
• Which key consumer groups use expedited payments more frequently?
• How can financial institutions effectively market expedited payments services?

Methodology

The consumer data in this report is based on data collected online from several different surveys:

• A random-sample panel of 2,350 respondents in March 2008. Overall margin of
• sampling error is ±2.86 percentage points at the 95% confidence level.
• A random-sample panel of 3,367 respondents from August 2008. Overall margin of
• sampling error is ±1.70 percentage points at the 95% confidence level. The surveys targeted respondents based on representative proportions of gender, age and income compared to the overall U.S. online population. Javelin also created a forecast model used in this report to analyze factors in the evolution of expedited payments, based on U.S. census data and Javelin primary consumer data.

Key Topics Covered:

- Overview
- Primary Questions
- Findings and Analysis
- Methodology
- Executive Summary
- Javelin's 2008 Expedited Payments Forecast
- Expedited Payments Strategy for 2009
- Substantial Base of Consumers Engage in Expedited Payments
- Expedited Payments Expenditure Varies Based on Economic Situation
- Understanding Consumer Motivators as a Function of Competition and
  Pricing
- Fewer Households use Expedited Payments in A Struggling Economy
- In a Recovering Economy, Savings Vastly Eclipses Spending
- In a Struggling Economy, Spending Eventually Exceeds Savings
- Frequent Users Present Prime Revenue Opportunities
- Younger Consumers Show High Propensity for Frequent Usage
- Majority of Expedited Payments Made Directly with Billers
- Pricing is Highly Dependent on Economic Factors
- Bring Expedited Payments into the Mainstream Through the Online
  Bill-Payment Venue
- Expedited Bill Payments Users Save Substantially on Late Fees
- Mid-Range Fees are Predominant: The Case for Price Increases
- The Importance of Channel Availability: Phone-Based Expedited
  Payments Re-Emerge
- Mobile Bankers Use Expedited Payments More Frequently
- Certain Age Groups may be Poised for Mobile Channel Growth
- Prolonged Economic Struggles Mean Lower Consumer Savings
- Appendices: Additional Consumer Information
- Generational Usage of Expedited Payments Shows Minimal Differences
- Middle-Income and Higher-Income Consumers use Expedited Payments
  more Frequently
- Younger Consumers Show Slightly Higher Propensity to use Expedited
  Payments
- Spike Among More Affluent Consumers for Recent Expedited Payments
  Usage
- Spike for Consumers Aged 25-44 in Avoiding Higher Late Fees
- Lower-Income Consumers Avoid Smaller Late Fees
- Affluent Consumers Pay Lower Fees for Expedited Payments
- Related Research
- Companies Mentioned

Companies Mentioned:

- CheckFree
- Online Resources Corporation (ORCC)
- Clairmail
- Silver State Schools Credit Union
- Metavante
- Visa

For more information visit http://www.researchandmarkets.com/research/551b1c/2008_expedited_pay

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