Report: Mobile Bill Pay Has $2.1 Trillion in Potential (Oct. 31, 2013)
More than 12.5 million Americans already are taking advantage of mobile bill payments, but the untapped potential of the market could be worth $2.1 trillion, according to a new report from Javelin Strategy & Research. That’s the total amount Javelin estimates Americans spend annually on seven essential bill types: open-loop credit cards, store-branded credit cards, utilities, mobile phone bills, mortgages, vehicle loans and student loans.
That septet represents a key opportunity for mobile bill payment providers, according to the report, which was based on two surveys of more than 9,000 U.S. consumers. As of now, just $36 billion of annual total bill payment volume is made via mobile. Online has become the dominant form of bill payment among Americans, accounting for $1.3 trillion of total bill payments, compared to just $648 billion in offline payments.
“A wide range of companies have much to gain if they can stand out among mobile bill-payment providers,” noted Mark Schwanhausser, director of omnichannel financial services, Javelin. “That starts with FIs that want to be the centerpiece of customer payments and jolt flat-lining growth in online bill payment, and billers that are seeking more efficient ways to collect payments and maintain direct contact with customers.”
Recent months have seen a number of payment providers and FIs launch mobile bill payment products. Last week, Fiserv unveiled a new platform enabling small and midsize billers to send bills and receive payments through multiple channels, including mobile. Early this year, U.S. Bank launched a photo-based mobile bill payment service in partnership with Mitek Systems. Meanwhile, payments processor PreCash is using mobile bill pay as an acquisition tool to draw users and establish customer connections that can be built upon to offer a full slate of financial services.