Scan and Pay Services: The Future of Electronic Bill Presentment

May 23, 2000


Cambridge, MA, USA, May  24, 2000

Report published by  Celent Communications

In 40-page report released today Celent Communications analyzes the nascent "scan and pay" bill presentment market in the USA. Despite widespread predictions that electronic bill presentment would be the next "killer" Internet application, the market has been at a virtual standstill for years -- in 1999, only 100,000 US households (0.1 percent) were using electronic bill presentment. 

In the past year, however, scan and pay service providers have injected new life into the stagnant electronic bill presentment market. Using scanning, optical character recognition and form identification technologies, these providers essentially offer lockbox services to retail consumers, bypassing banks and billers to deliver 100 percent of a consumer痴 bills online for review and payment. These services have the potential to realize all of the convenience and cost savings that have been promised, but not delivered, by other providers of electronic bill presentment.

Members of Celent Communication痴 Retail Banking  research service can download this report electronically by clicking on the icon to the right. A Table of Contents for this report can be viewed online.  

In this report, "Scan and Pay Vendors: The Future of Electronic Bill Presentment," Celent Communications examines the consumer lockbox model (including the business process, technological underpinnings and economics of the model). The report provides an in-depth analysis of each of the three primary vendors of consumer lockbox services and assesses the prospects for the vendors, and for the consumer lockbox model as a whole, over time.

"We do not expect consumer lockbox providers to become major destination sites. For a variety of reasons, most notably consumer concerns about security and the expense and risk associated with providing lockbox services, we expect that the future of consumer lockbox providers will in large part be dependent upon their ability to create lucrative technology partnerships with other players in the electronic bill presentment market," explains Jody Cornish, an analyst in Celent Communications Retail Banking group.

"However, we also believe that a new, hybrid model of electronic bill presentment, which includes some lockbox processing, will emerge. Lockbox services will become an integral component of any viable electronic bill presentment offering."

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents


Cambridge, MA, USA, May  24, 2000

Return to Abstract of this report.

  Market Participants 5
  Growth of Electronic Bill Presentment 6
  Information Aggregation 11
  Solution Elements 11
  CyberBills 14
  PayMyBills 19
  PayTrust 22
  Consumer Perspective 28
  Provider Perspective 30
  Competition 33



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