Paymentus Marks 20 Years of Bill Pay Innovation With New Insights Into Bill Pay Behavior
Consumers Seek Control, Expanded Payment Options and Convenience to Pay 16.8 Billion Bills Annually
Since its founding in 2004,
As National Pay Your Bills Week comes to a close,
- In 2023, Americans received and paid more than 16.8 monthly bills – that’s more than 50 bills for each person, regardless of age.
-
In 2023 alone, consumers spent
$5.6 trillion on monthly bills – more than 20% of the totalU.S. GDP.
- While the vast majority of bills are now paid electronically – only 4 in 10 are set up for auto-pay, leaving 10 billion to be paid individually, month-to-month.
“Paying bills is a ubiquitous experience that offers little enjoyment, which is why it’s often called a chore,” said
The volume of bill payments made by credit or debit card has increased by 120% since 2010, according to recent data, and payments using digital wallets and other alternative payment methods are growing in popularity, especially among younger consumers. Today’s average bill payer relies on at least four different payment methods to manage their monthly bills.
“The data suggests that control over cash flow is the primary driver of bill pay behaviors,” explains Sharma. “While it is certainly more convenient to use auto-pay for bill payments, the fact is that consumers will trade convenience for the ability to change their payment method or shift their payment date from month-to-month. They are dynamically managing money across numerous platforms – not just a checking account – and work hard to time payments and avoid late fees and service interruptions. This is why 10 billion bills were paid as one-time-payments in 2023.”
To help consumers manage 10 billion individual transactions every year, billers and service providers need to give customers convenient and feature rich billing experiences, or risk losing business according to Sharma. A 2023
“To look back over two decades of digitization and innovation, it is amazing how much we have accomplished,” said Sharma. “Banks and billers now have the tools to help consumers manage and pay their monthly bills faster, with more security, more payment options, and through more channels than ever before. Still, the status-quo has a short shelf life. Consumer expectations have never been higher or grown faster. It is up to us to understand them and outpace them.”
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