PINcept.com: Bill Payment Practices of the Under Banked

Bill Payment Practices of the Under Banked

A New Report From Aite Group

Bill Payment Practices of the Unbanked and Underbanked

Walk-in and mail remain the dominant channels for unbanked and underbanked consumers paying bills.

Boston, MA, February 16, 2010 – A new report Aite Group, LLC examines the channels and payment methods used by unbanked and underbanked consumers for making bill payments, and segments these consumers by payment method preference. The report is based on in-person surveys of 257 check cashing store customers.

The report shows that traditional bill payment methods retain their dominance with unbanked and underbanked consumers. Cards, online payments, and direct debit have made only small inroads into bill payments in this market - a market that continues to rely on checks, cash, and money orders. Forty-five percent of those consumers pay their bills via mail, and 41% do so in person.

"Electronic bill payment methods have a long way to go to gain greater acceptance among the unbanked and underbanked" says Gwenn Bézard, research director with Aite Group and co-author of this report. "The majority of unbanked and underbanked consumers are not yet motivated to use emerging bill payment products," adds Judy Fishman, analyst with Aite Group and co-author of the report.

This 27-page Impact Report contains 18 figures. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right.