Consumer Demand for EBPP Remains Tepid
Perceived Lack of Benefits and High Cost Stalling Market
Growth for Financial Institutions and Technology Vendors
NEWTON, MA -- October 22, 2001 -- Despite towering
expectations and a range of vendors to provide functionality,
little progress has been made in terms of market demand for
electronic bill presentment and payment (EBPP), says a new
report from Meridien Research. Consumers are not willing to pay
for the ability to receive and pay bills online and many corporate
banking officers wrongly see EBPP as a threat to their existing
lockbox businesses.
"For the last several years, the hype has been that EBPP was
going to be the 'killer application' for financial institutions to
expand their relationship with clients," said Jeanne Capachin,
Senior Analyst at Meridien Research. "Unfortunately, despite
repeated efforts to convince them otherwise, consumers have
failed to embrace EBPP and thus far, have refused to pay the
$5-10 per month that most institutions charge for this service. In
addition, on the corporate banking side, many banks have
significant investment in lockbox operations which they are trying
to protect. They perceive EBPP has a threat to that investment."
"Electronic Bill Presentment and Payment: Money Talks and the
Postman Walks" is an in-depth look at the marketplace and
history of EPBB, various delivery models and the vendors that
serve the market. In addition, barriers to increased demand and
the role of financial institutions are also examined in the report.
An abstract is available at www.meridien-research.com.
Copies of the report can be purchased by calling (617) 796-2800
or via email to sales@meridien-research.com.
About Meridien Research
Meridien Research of Newton, MA, provides analytical research
services to users and providers of financial industry technology.
Meridien Research targets three technology areas of strategic
importance to financial services firms: eFinancial Services,
Trading & Risk Management and Customer Relationship
Management. Each practice delivers reports detailing new issues
and challenges and uses its knowledge to advise clients in
technology related decisions. Visit
www.meridien-research.com/press to register for announcements
as new research becomes available. For media relations, contact
Parallax LLC at 781.235.7025 or
parallax@meridien-research.com.
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