An estimated 63.1 million American households or three-fourth of those online are paying their bills online rather than writing checks, a survey sponsored by CheckFree revealed.
The survey indicates that consumers are more confident about online security as more Americans are gaining experience in using Internet services, making security concerns less of a barrier to online bill payment adoption than in the past. In the latest survey, only 13 percent of respondents cited online security as the top reason for not using the online bill payment service, down from 17 percent in the 2007 survey. Overall, online security ranked third among barriers to online bill payment adoption this year, compared to its number-one ranking in 2007. The primary barrier (15%) in the new study was “I don’t know enough about how it works.â€
For the second year in a row, American consumers who go online each month paid more of their household bills online at bank and billing organization websites than by any other method. An estimated 31 million households are using online banking websites to pay bills, 47.9 million households are using biller websites and 16 million are using both online banking and biller sites to receive and pay bills. Approximately 63.1 million of Internet-using households pay at least one bill online in an average month, up from 61 million in the 2007 survey. These households collectively paid 934 million bills in a typical month, according to the survey results.
Online bill payments continued to outpace check bill payments for the second consecutive year. Online bill payments made at both bank and biller websites rose to 42 percent of the total volume of household bill payments made each month, up from 39 percent in the 2007 survey. Online bill payment adoption has significantly grown since the 2002 survey, when only 14 percent reported paying their bills online.
The survey polled 3,031 US consumers who use the Internet, were at least 21 years of age and were at least partly responsible for household bill payments. The online survey has a margin of error of plus or minus 2 percent. The results are considered representative of the nation’s 85.1 million Internet-connected households.
Originally posted on August 27, 2008 @ 7:56 pm