Digital Transactions Authoritative, insightful and timely information for payments professionals
Consumers’ use of digital channels to pay bills continues to rise even as the Covid-19 pandemic begins to ease, according to a study by ACI Worldwide Inc.
In looking at how consumers’ use of digital channels, such as Web sites and mobile apps, has grown during the first half of 2021 from the second half of 2020, ACI found that 21.4% of consumers were using these channels to pay their bills, compared to 16.4% during the second half of 2020.
While more consumers are using digital channels for bill payments, they are using them a little less frequently for that purpose. During the first half of 2021, 73% of consumers said they pay their bills using digital channels with the same frequency, compared to 77.5% during the second half of 2020.
When it comes to consumers’ preferred method for paying bills digitally, biller Web sites top the list, with 36.8% using them during the first half of 2021, compared to 33.3% during the first half of 2020. Banks’ mobile apps are the next most-favored digital channel for bill payment, with 32.7% of consumers using them to pay bills during the first half of 2021, comparted to 27.8% during the second half of 2020
Billers’ mobile apps are the next most-favored digital channel for bill payment, with 29.4% of consumers using them during the first half of 2021 compared to 30% during the second half of 2020. Bank Web sites also remain a popular channel for bill payment, with 32.7% using them during the first half of 2021, compared to 27.2%. Billers’ mobile apps registered at 29.4% usage during the first half of 2021, up from 27.8% during the second half 0f 2020.
“Many consumers prefer to pay directly through the biller’s channels because they see it as the simplest option,” Sanjay Gupta, an executive vice president at ACI Worldwide, says by email. “Paying on the biller’s Web site or app often provides more options for the consumer, such as the ability to schedule recurring payments on a date convenient for them.”
In looking at year-over-year data, consumers’ preferred method of paying one-time and recurring bills has begun to shift away from debit cards toward the use of credit cards. During the first half of 2021, 28.1% of consumers used a debit card to pay a one-time bill, down from 32.3% for the same period in 2020. At the same time, 25.5% used a debit card for recurring bill payments during the first half of 2021, down from 27.3% during the same period in 2020.
In contrast, 26.1% used a credit card to pay a one-time bill during the first half of 2021, up from 22.3%. Some 30.5% used a credit card for a recurring bill, up from 29%.
Mobile wallets have also become more popular for bill payment, with 44.3% of consumers using a mobile wallet, up from 42.7% in 2020.
