Study Finds More Consumers Turn to 'Expedited' Payments.

Elizabethtown, KY -- A study finds that about half of consumers who pay monthly bills such as their mortgage through expedited, electronic payments do so because they "forgot" to pay earlier and are rushing to avoid late payment charges or other penalties.

Of those consumers utilizing expedited payment methods, 71% do so within three days of the bill's due date, 21% waited until the day the bill was due and 19% pay after the due date but before a late fee is imposed.

The method of expedited payment also varies, but more than half (52%) of consumers are still making expedited payments by telephone to a call center.

Almost one-third (31%) do so via Web-based payment systems. Only 8% make expedited payments by rush delivery or overnight mail. And only 6% use walkup money transfers or wire services.

Moreover, consumers participating in the survey reported that their mortgage bill was the second most commonly paid bill via expedited payments, falling only behind credit cards. Other bills often paid through expedited means included car loans, cell phones, electric utility, insurance, and cable television.

Paul Flanigan, chief marketing officer of Fort Knox National Co., said that understanding payer behaviors can help clients of e-pay services discover greater value in their remittance process.

Noting that one in four consumers have made an expedited payment within the last year, he said billers should offer all payment channels and types and make them easy for consumers to use. At FKNC, that means not requiring enrollment or registration to make electronic payments, he added.