Mobile Payments Now Account for 1 in 4 Billing Website Visits
Mobile payments now account for 24% of all website visits for billing organizations, according to a new survey from Fiserv. The mobile payment industry has grown tremendously over the last year, with a 42% increase in activity from a year ago.
Fiserv’s Fourth Annual Biller Mobile Bill Pay Benchmark Study examined the ways consumers are using mobile bill payment and how billers are approaching mobile bill pay and presentment (MBPP).
Billers are responding well to the high demand for mobile payment options. 54% say they currently offer mobile bill pay for their customers, and another 23% say they will be launching mobile bill payments in the next year.
Not surprisingly, 42% of billers believe an increase in mobile billing and payment will increase the adoption of paperless e-billing and payments. E-bill adoption would reduce postage costs and would fulfill consumers’ expectations for timely notifications, late payment warnings and self-service options.
78% of billers believe mobile bill pay will also drive the growth of credit, debit and prepaid card-funded payments.
Consumers aren’t the only ones with an increase in mobile activity. The same study found 58% of small businesses with $500,000 to $10 million in annual sales now use mobile banking to monitor their accounts. Mobile banking business owners have higher deposit volumes in their accounts on average, and are twice as likely to seek a loan in the next year when compared to their non-mobile counterparts.
As expected, Millennials lead the way in mobile payment adoption. 66% of businesses led by Millennial-aged adults use mobile banking, compared to 58% of businesses led by Gen Xers. For Millennial-led businesses that do not use mobile banking, 22% say it is due to a lack of options from their financial institution.
“Consumers want financial services that fit effortlessly into their lives–mobile offerings provide that compelling convenience. Mobile bill pay offers the proven ability to draw customers to the mobile platform on a recurring basis, leading to a more engaged and satisfied customer,” said Jim Lester, senior vice president, Product Management, Biller Solutions, Fiserv. “These benefits also bring elevated customer expectations, technology demands, complexity and risk. Billers need to act by implementing a comprehensive MBPP strategy that incorporates simple and easy user experiences, robust security, compliance protocols and payment cost optimization.”