Abstract
From its inception, online bill payment has made waves in the industry. The latest research from
Mercator Advisory Group explores developments in online bill payment and their effects on the
industrys future. Beginning with a look at the two generally accepted bill payment models, direct-biller
and consolidator, the report looks at how a new online bill model, the Direct-Aggregator is changing
the billing game. Direct-aggregators stand to capture significant customer attention and slow the
growth of consolidator sites.
"Online bill payment is a complicated industry where small changes to infrastructure,
business models and consumer behavior can have dramatic effects. In the last year or so, both the
rules for online bill payment and the players on the field have changed." According to Mike
Friedman, Director of Mercator Advisory Groups Emerging Technologies Service and lead analyst on
the report. "There is plenty of room for continued growth in online billing; however, the
strategic playbook that was in place only a few years ago, may already be outdated."
In Innovations In Online Bill Payment, Mercator Advisory Group examines the three business models
defining online bill payment in todays market. The research also identifies the shifting strategic
focus of online bill payment sites and how FSIs offering pay-anyone solutions will need to adjust.
With online bill payment being offered more and more as a free service by consolidators, the use of
premium services and cost-saving measures will be critical to continued success. The report examines
both available premium services and the steps banks can undertake to lower the cost structure of
their bill payment divisions.
The report also looks at the competitive landscape and discusses new products and features at
leading online bill payment sites. New businesses are entering the online bill payment space with
innovative approaches to capture customer attention. Drawing from refined understanding of consumer
preferences, companies are tailoring their offerings to capture more specific and segmented
demographics. | 
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