2009 Expedited Payments Forecast: Due to Recovering Economy, Reposition Offerings

Published by: Javelin Strategy & Research

Published: Oct. 1, 2009 - 39 Pages

Table of Contents

Overview

Primary Questions

Findings and Analysis

Methodology

Executive Summary

Javelin’s 2009 Expedited Payments Forecast

Expedited Payments Strategy for 2009-2010

Consumer Trend 2009

Though Recent Usage is Down, a Substantial Base of Consumers Still Initiate Expedited Payments

Expedited Payments Forecasts

Expedited Payments Expenditure

After a Slight Dip, Expedited Payments Usage Rebounds Through 2014

In a Recovering Economy, Savings Vastly Eclipses Spending

Consumer Use of Expedited Payments

Frequency - Which Represents Prime Revenue Opportunities - Declines

Younger Consumers Show Greater Propensity for More Frequent Usage

Alerts Users Demonstrate Usage of Expedited Payments Twice as High

Expedited Payments by Channel

Vast Majority of Expedited Payments Made Directly With Billers

The Importance of Channel Availability: Phone-Based Expedited Payments Losing Ground

Expedited Payments Pricing

Pricing is Highly Dependent on “Convenience vs. Necessity”

Expedited Bill Payments Users Save Substantially on Late Fees

Mid-Range Fees Are Predominant: The Case for Price Decreases

Certain Age Groups May be Poised for Expedited Mobile Channel Growth

Appendices: Additional Consumer Information

Expedited Payments Used for Credit Card, Home Payments, Mobile Bills

Spike in Use Among Higher-Income and Lower-Income Consumers

Varied Usage of Expedited Payments Among Age Groups

Recent Expedited Payments Usage Among Various Income Groups

Spike for Younger Consumers in Avoiding Higher Late Fees

Higher- and Lower-Income Consumers Avoid Larger Late Fees

Affluent Consumers Pay Lower Fees for Expedited Payments

Alerts Users Demonstrate Higher Frequency of Expedited Payments

Related Research

Companies Mentioned

Table of Figures

Figure 1: Consumer Usage of Expedited Payments 2008-2009

Figure 2: Overall Consumer Expedited Payments Expenditures 2006-2014

Figure 3: Household Usage of Expedited Payments 2006-2014

Figure 4: Usage, Spending and Savings in an Improved Economy 2009-2014

Figure 5: Frequency of Usage for Expedited Payments 2008-2009

Figure 6: Frequency of Usage for Expedited Payments by Age

Figure 7: Last Time Used Expedited Payments Consumers who Received an Alert Last 90 Days vs. All Consumers

Figure 8: Venue for Expedited Bill Payment among Consumers

Figure 9: Consumer Channel Selection for Expedited Payments

Figure 10: Mean Pricing for Expedited Payments through 2014

Figure 11: Late Fees Avoided for Expedited Payments 2005-2008

Figure 12: Consumer Fees for Expedited Payments 2008-2009

Figure 13: Consumer Channel Selection for Expedited Payments by Age

Figure 14: Type of Bill Paid With Last Expedited Payment

Figure 15: Frequency of Expedited Payments Usage by Income

Figure 16: Consumer Usage of Expedited Payments by Age

Figure 17: Consumer Usage of Expedited Payments by Income

Figure 18: Late Fees Avoided by Expedited Payments by Age

Figure 19: Late Fees Avoided by Expedited Payments by Income

Figure 20: Fees Paid for Expedited Payments by Income

Figure 21: Frequency of Expedited Payments from Consumers who Received an Alert in Last 90 Days vs. All

Consumers

Abstract

• What effect will economic conditions have on expedited payments revenue and consumer propensity to use expedited payments services?
• How much will consumers save in late fees by executing expedited payments?
• How much do consumers pay for expedited payments?
• With whom do consumers initiate expedited payments — banks or billers?
• Which channels do consumers choose for expedited payments?
• Which key consumer groups use expedited payments more frequently?

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