Study Finds Increasing Use of Electronic Bill Payment.

San Dieog -- A new study into the habits of consumer bill payers has revealed both compelling evidence and confirmation that consumers are increasingly turning to electronic methods to pay their bills and prefer to make those payments directly with their biller.

The study also shows that consumers are turning to expedited payments to pay their many bills as close to the actual due date as possible and they have a variety of preferences for making those payments. For example, while payment by phone is still the principal method of expedited payment, a growing number of consumers prefer to use the biller's direct web site to make payments. These are some of the pivotal findings of Fort Knox National Company's second annual consumer preference study. The findings of this new study are being presented today at the NACHA Payments 2006 Conference in San Diego.

Fort Knox National Company, a provider of electronic payment solutions, commissioned their second annual Bill Payments and Expedited Payments Survey from Crone Consulting and Javelin Strategy & Research. The intent of the study was to identify key motivations and trends in the use of electronic payment services.

"Do not underestimate the value perceived by consumers in a biller direct solution. Consumers are expressing clear preferences for how they want to pay their bills. By understanding payer behaviors, companies can develop strategies that support their overall profitability and customer relationship management objectives," said Paul Flanigan, Fort Knox National Company's chief marketing officer. "Although bank-based consolidator and biller direct payment channels are both high in preference, when you combine all the biller direct payment options, it is a compelling element that two-thirds of bill payments are going through billers' channels."

The study also points to an increase in expedited (last minute) bill payment. "We are seeing the impact of cycle billing in the survey results," said Richard Crone of Crone Consulting. "Cycle billing complicates personal finances by spreading payment due dates over the course of the month. The date on which consumers pay their bills has become a critical personal financial management ...