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

Table of Contents

• Overview
• Primary Questions
• Findings and Analysis
• Methodology
• Executive Summary
  • Javelin' s 2009 Expedited Payments Forecast
  • Expedited Payments Strategy for 2009-2010
• Consumer Trend 2009
  • Though Recent Usage is Down, a Substantial Base of Consumers Still Initiate Expedited Payments
• Expedited Payments Forecasts
  • Expedited Payments Expenditure
  • After a Slight Dip, Expedited Payments Usage Rebounds Through 2014
  • In a Recovering Economy, Savings Vastly Eclipses Spending
• Consumer Use of Expedited Payments
  • Frequency - Which Represents Prime Revenue Opportunities - Declines
  • Younger Consumers Show Greater Propensity for More Frequent Usage
  • Alerts Users Demonstrate Usage of Expedited Payments Twice as High
• Expedited Payments by Channel
  • Vast Majority of Expedited Payments Made Directly With Billers
  • The Importance of Channel Availability: Phone-Based Expedited Payments Losing Ground
• Expedited Payments Pricing
  • Pricing is Highly Dependent on “Convenience vs. Necessity”
  • Expedited Bill Payments Users Save Substantially on Late Fees
  • Mid-Range Fees Are Predominant: The Case for Price Decreases
  • Certain Age Groups May be Poised for Expedited Mobile Channel Growth
• Appendices: Additional Consumer Information
  • Expedited Payments Used for Credit Card, Home Payments, Mobile Bills
  • Spike in Use Among Higher-Income and Lower-Income Consumers
  • Varied Usage of Expedited Payments Among Age Groups
  • Recent Expedited Payments Usage Among Various Income Groups
  • Spike for Younger Consumers in Avoiding Higher Late Fees
  • Higher- and Lower-Income Consumers Avoid Larger Late Fees
  • Affluent Consumers Pay Lower Fees for Expedited Payments
  • Alerts Users Demonstrate Higher Frequency of Expedited Payments
• Related Research
• Companies Mentioned

Table of Figures:

• Figure 1: Consumer Usage of Expedited Payments 2008-2009
• Figure 2: Overall Consumer Expedited Payments Expenditures 2006-2014
• Figure 3: Household Usage of Expedited Payments 2006-2014
• Figure 4: Usage, Spending and Savings in an Improved Economy 2009-2014
• Figure 5: Frequency of Usage for Expedited Payments 2008-2009
• Figure 6: Frequency of Usage for Expedited Payments by Age
• Figure 7: Last Time Used Expedited Payments Consumers who Received an Alert Last 90 Days vs. All Consumers
• Figure 8: Venue for Expedited Bill Payment among Consumers
• Figure 9: Consumer Channel Selection for Expedited Payments
• Figure 10: Mean Pricing for Expedited Payments through 2014
• Figure 11: Late Fees Avoided for Expedited Payments 2005-2008
• Figure 12: Consumer Fees for Expedited Payments 2008-2009
• Figure 13: Consumer Channel Selection for Expedited Payments by Age
• Figure 14: Type of Bill Paid With Last Expedited Payment
• Figure 15: Frequency of Expedited Payments Usage by Income
• Figure 16: Consumer Usage of Expedited Payments by Age
• Figure 17: Consumer Usage of Expedited Payments by Income
• Figure 18: Late Fees Avoided by Expedited Payments by Age
• Figure 19: Late Fees Avoided by Expedited Payments by Income
• Figure 20: Fees Paid for Expedited Payments by Income
• Figure 21: Frequency of Expedited Payments from Consumers who Received an Alert in Last 90 Days vs. All Consumers

Companies Mentioned

• ClairMail
• M-Com
• ORCC
• Western Union
• Yodlee