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Facts
of the online bill payment survey
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- 46 per cent
were in the 26-35 age group
- 83 per cent
bill payers were male and 17 per cent female
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Payment
preferences:
- 73 per cent
regularly paid cellular phone bills
- 72 per cent
paid telephone bills
- 69 per cent
paid credit card bills
- 58 per cent
paid electricity bills
- 42 per cent
paid insurance premiums
- 36 per cent
paid Internet access bills
- 27 per cent
paid for their magazine subscriptions online
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Top
5 states:
- 33.4 per cent
from Maharashtra
- 20.1 per cent
from New Delhi
- 9.9 per cent
from from Tamil Nadu
- 7.5 per cent
from Karnataka
- 5.4 per cent
from Andhra Pradesh
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"Online Bill Payment is a cost saver for billers and a great
revenue opportunity for banks and third-party service providers.
Banks are in a particularly good position to cash in because of
their reputation as trusted companies and with an estimated 16+
million Indians using their Online Banking Services by 2007-08,
they can further maximize their revenues on their e-infrastructure
by promoting these services," he added.
The survey was mandated by the IAMAI to Cross Tab Marketing Services
with the overall objective of obtaining data to understand and anticipate
online bill payment trends. The report provides granular information
to financial institutions so that they can cater to the unique characteristics
of India’s online customers.
Some details of the research:
Important factors influencing online bill payments
Fifty four per cent cited convenience as the most important that
induced them into paying bills online. Thirty five per cent cited
time saving as they could pay bills without having to stand in line
at a counter or even go a bill payment centre. On average, customers
saved 24 hours a year; paying bills online also reduced paperwork
and was an easier way to manage bills. Only five per cent were attracted
to online bill payment because they could pay multiple bills at
the same time on the same site or on different sites.
Types of bills paid by online bill payers
Seventy three per cent regularly paid cellular phone bills online,
72 per cent paid telephone bills, 69 per cent paid credit card bills,
58 per cent paid electricity bills, 42 per cent paid insurance premiums,
36 per cent paid Internet access bills, while 27 per cent paid for
their magazine subscriptions online.
Site options for online bill payments
Consumers can use sites of utility companies, banks or third-party
aggregators to pay bills online. Eighty three per cent used their
bank’s bill payment services, 43 per cent paid on the site
of the biller/ service provider and 21 per cent relied on a third-party
site.
Awareness & communication about online bill payments
Fifty two per cent learned of online bill payment services on their
own, whereas 41 per cent came to know about online bill payment
through advertisements. Six per cent heard of it through internet
ads. Thirty nine per cent came to know about online bill payment
through a bank representative, 24 per cent heard of it through a
biller email / advertisement, 20 per cent through friends/ peers,
and 10 per cent through mobile and SMS alerts.
Online bill payments by number of months/years
Sixty four per cent had been paying bills online for more than a
year, of which 35 per cent had done it for more than two years,
which indicates a growing comfort with the internet. While 29 per
cent had been using it for 13–24 months, 21 per cent used it
for 7-12 months, 14 per cent for 2-6 months and two per cent for
less than one month.
Internet access
While 71 per cent of online bill payers accessed the internet from
home, 77 per cent did so from office and 32 per cent accessed the
internet from cyber cafes. On the other hand, six per cent accessed
it from a friend’s place and 16 per cent from the mobile.
Internet usage by years
Close to 99 per cent of online bill payers had used the internet
for more than one, which means it’s a pedigreed audience that
is well-versed in the nuances of the internet. On the other hand,
58 per cent had been using it for more than six years, 36 per cent
for three - five years, four per cent for one - two years and one
per cent for six - 11 months.
When asked whether they would recommend online bill payment services
to their family and friends, 98 per cent said yes.
Deterrents to online payments
The biggest reason for not paying online is concerns about security,
with 41 per cent of respondents indicating that they did not use
the services because of them. Also, 35 per cent of respondents preferred
to pay bills at payment counters or drop cheques in drop boxes,
while 27 per cent of Netizens did not use online bill payment services
as they 'didn’t know how to pay bills online' or due to fear
of 'technological failure' during transactions.
Fourteen per cent didn’t know whether their banks provided
online bill payment services, so there’s a case for better
communications and marketing, while 12 per cent of respondents didn’t
know whether their service providers offered online bill payment
services.
When asked what would induce them to pay bills online, 58 per cent
of respondents felt that a guarantee that online bill payment services
were safe and secure would encourage them to use them. While 45
per cent said they would pay their bills online if they got receipts
of payments made online; another 45 per cent said they would pay
bills online if it was free or if the charges were reduced.
On the other hand, 34 per cent felt they might use the service
if a clear demo of how to use it was provided and 30 per cent wanted
an online customer support service, while 17 per cent said they
would pay bills online if they could access the internet more frequently
and freely.
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