Online Bill Payment Drives Adoption of Other Online Services

In the year to come, TowerGroup also anticipates that the traction gained by online bill payment will continue to encourage less traditional players, such as core processors, to enter the market, while established bill payment providers will evolve and refine their core business models. The focus for both traditional and non-traditional players will be around building the growth trend in consumer adoption through a combination of product innovation and improvements to security.

In the area of product innovation, same-day payments will be a key focus in 2006, with several initiatives underway to make same-day delivery a widely accessible service option. An expansion in access to card-based payment alternatives within the online bill payment suite, as well as growth in a new breed of biller-oriented services will also be important features in 2006. Security and measures to implement new technologies and best practices will be critical from both compliance and consumer confidence perspectives.

In its new research, TowerGroup identifies seven key issues that impacted online bill payment during 2005. Dubbed the "Seven Cs," these issues document the past year's top business drivers while highlighting what to watch in 2006 as online bill payment continues to mature. The Seven Cs are:

• Core business assessment
• Convenience payments
• Consumer confidence
• Core processor expansion
• Consumer adoption
• Card initiatives
• Compliance

At TowerGroup, Ms. Robertson also covers identity theft, online security and fraud and non-traditional online payment options.