Rising Online Payments Predicted To Drive Other Online Services

Online bill payment shifted in 2005 from emerging market status to established practice, as a significant share of consumers and organizations continued to adopt the service. In 2005, 41.1 million consumer households, or nearly two fifths of US households, embraced

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Online bill payment shifted in 2005 from emerging market status to established practice, as a significant share of consumers and organizations continued to adopt the service. In 2005, 41.1 million consumer households, or nearly two-fifths of US households, embraced online bill payment in 2005, according to research by TowerGroup.

The research firm predicts that increased comfort and familiarity with online bill payment will help drive consumers toward adoption of other online services and functionalities — such as bill presentment, the use of non-traditional payment options, or the use of online account applications — in 2006.

TowerGroup anticipates that the traction gained by online bill payment will continue to encourage less traditional players, such as core processors, to enter the market, while established bill payment providers will evolve and refine their core business models.

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