2009 Expedited Payments Forecast: Due to Recovering Economy, Reposition Offerings Around Convenience Rather Than Desperation

Abstract

Expedited payments - same-day or next-day bill payment services - represent a viable revenue source for billers, financial institutions, and third parties. The size of that opportunity, however, will vary depending on economic conditions, consumer propensity to use the services, and how each of those factors affects pricing moving forward. This report presents both the Javelin forecast model analyzing the future of expedited payments revenue potential for various players, as well as an analysis of primary consumer data regarding 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.

• 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?

• Authors: Bruce Cundiff, Director of Payments Research and Consulting; Mary Monahan, Managing Partner and Research Director
• Contributors: Alan Ruperto, Forecast and Data Analyst John Kenderski, Research Associate; James Van Dyke, Founder and President
• Length: 39 pages, 21 charts/graphs

Methodology

• A random-sample panel of 2,779 households collected in April 2009, overall margin of sampling error is
• ±1.86 percentage points at the 95% confidence level.
• A random-sample panel of 2,350 households collected in March 2008, overall margin of sampling error is 2.02 percentage points at the 95% confidence level.
• A random-sample panel of 3,349 consumers collected in January 2007, overall margin of sampling error is ±1.69 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.