Bank of America, CheckFree Deliver on Strategic Alliance; New Electronic Billing and Payment Service Debuts in Selected Markets

Business Wire, Nov 14, 2000

Business Editors

CHARLOTTE, N.C. and ATLANTA--(BUSINESS WIRE)--Nov. 14, 2000

Bank of America (NYSE:BAC), a market leader in the delivery of online financial services with nearly 3 million online banking customers, and CheckFree Corporation (NASDAQ:CKFR), the leading provider of financial electronic commerce services and products, today announced that Bank of America has launched its new electronic billing and payment service, using the CheckFree Genesis platform, in selected Midwest markets.

This announcement marks the first stage of the implementation of the strategic alliance forged by the two companies in April 2000. The new service, which enables Bank of America customers to receive and pay their bills online through www.bankofamerica.com, is now available in Arkansas, Oklahoma, Iowa and Kansas. The phased rollout will continue over the next several months, extending the service to additional Bank of America markets and customers across the country.

"Our goal is to provide all Bank of America customers with access to a fully integrated electronic billing and payment solution that will make a traditionally tedious monthly chore as simple as a few clicks of the mouse," said Jeanine Brown, Interactive Banking executive, Bank of America. "This new service will help us build broader, deeper relationships with our customers by meeting more of their financial needs and providing a fast, easy and convenient way to pay virtually anyone online."

According to Brown, electronic billing and payment enhances the bank's already robust Online Banking service. In addition to accessing their Bank of America accounts through the Internet, customers who subscribe to Online Banking with Bill Pay will be able to view electronic versions of bills from participating billers, schedule one-time or recurring payments for virtually any bill -- whether or not it has been delivered electronically -- and pay other individuals online rather than by writing a paper check.

Bank of America teamed with CheckFree earlier this year to provide its customers with this enhanced service because of increasing consumer demand for online solutions that bring added value and convenience to their lives. A recent report from Jupiter Research concludes that electronic billing and payment adoption will take off quickly in 2001, doubling in volume in the next two years. By 2005, the firm predicts, more than 40 million households will view and pay their bills online.

Brown views electronic billing and payment service as a key relationship-building tool for the bank, citing its "stickiness factor" and the tendency for bill-pay customers to do more business with the bank. Bank of America customers who sign up for electronic billing and payment service are more likely to stay with the bank than traditional checking account customers and use more of the bank's products and services.

"We have an aggressive plan to deliver electronic billing and payment to all Bank of America customers nationwide, making the service more accessible and easier to use than ever," added Lynn Busing, CheckFree executive vice president. "At the same time, we're working with Bank of America to bring more of its corporate billers online, enhancing the service and allowing customers to receive more of their bills electronically through their trusted financial institution."

Currently, 210 billers -- including leading telecommunications, utility, mortgage, home loan, credit card, insurance, cable and wireless companies -- are contracted to distribute their bills using CheckFree's electronic billing and payment service. Bank of America customers will be able to receive their Bank of America credit card bills electronically, in addition to bills from other companies such as AT&T, Sprint, Worldcom, Southwestern Bell, Verizon Wireless, Amoco, Texaco and Sears.

Bank of America, which has existing relationships with more than 80% of the Global Fortune 500 and 80% of Fortune 1000 companies, will be offering the service to its commercial and corporate banking clients that want to offer electronic billing and payment as an extension of their banking relationship.

The launch of Online Banking with Bill Pay is the latest in a long series of Internet and technology-centric initiatives undertaken by Bank of America, the online banking market leader. Bank of America has been offering PC-based banking to its customers since the early 1980s and became the first major bank in the United States to have a presence on the Internet in 1994. Since then, the company has made a number of enhancements to its Online Banking site and is in the process of building a financial services engine to accelerate B2B e-commerce. Recently, Bank of America introduced its new Business Center featuring Banc of America Marketplace and rolled out wireless financial services for Private Bank clients. Additionally, the bank announced plans to introduce Web-enabled ATMs at more than 20 banking centers in Atlanta and Charlotte.

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