MasterCard Research Reveals Consumers Looking to Online Bill Payment as a Tool for Financial Management

Business Wire, April 27, 2004

Business Editors/Consumer Writers

PURCHASE, N.Y.--(BUSINESS WIRE)--April 27, 2004

Convenience, Control and Security Draw Consumers to

Financial Institution Websites for Bill Payment

A new Harris Interactive(R) survey sponsored by MasterCard International shows that U.S. consumers are embracing the idea of online bill payment at their financial institution's website. Released today by MasterCard Remote Payment and Presentment Service (RPPS), the study's findings offer evidence that an increasing number of consumers are paying their bills online through their bank or financial institution's website, not only for the convenience of paying all their bills in one place but also for the benefits of complete financial management, as well as piece of mind in dealing with an institution they have an established trusted relationship with.

The study found that a majority (90 percent) of survey participants who routinely pay their bills online at their financial institution's website, noted convenience as their primary reason for preferring this method. Other factors that influence their choice include 24/7 access, saving money, saving time and security. Particularly noteworthy, more than two-fifths of adherents to this bill-paying method (44 percent) maintain they would change financial institutions if their current one stopped offering the service, taking their business instead to another financial institution that does offer online bill payment.

MasterCard RPPS believes that the ability to pay bills at a financial institution's website is the optimal solution because it simplifies the lives of busy consumers, especially those with diverse banking needs including bill payment, money transfer, checking account balances and reviewing account transactions and fragmented bill payment methods. Merchants, service providers and banks also benefit from this bill payment model in terms of customer satisfaction and loyalty, lower paper volume and reduced payment processing.

"Our survey results show that Americans are gravitating toward their financial institutions' website to pay bills," said Cathleen Conforti, senior vice president of MasterCard RPPS. "Consumers recognize that paying bills online frees them from time-intensive paper methods of bill paying, and for those using other online payment channels it saves them from the hassle of going to individual sites and having to remember numerous passwords. Consumers see the benefit of managing their finances with one-stop shopping. Nearly three quarters of respondents choose this bill payment method because of the ability to not only pay all their bills in one place but also review account balances, transfer funds and so forth."

The Harris Interactive study was commissioned by MasterCard RPPS as a part of an ongoing effort to better understand consumer attitudes and behaviors with regard to online bill payment, a financial trend that is seeing rapid growth. In fact, market researcher Gartner estimates that 35 million people pay their bills online now, a number that will grow to 65 million by 2007.

Additional findings of the latest Harris Interactive survey include:

-- The activities that consumers engage in most frequently at

their financial institution's website include paying bills,

accessing bank statements and checking balances, and reviewing

account transactions.

-- Credit card payments are the bills most frequently paid

through a financial institution's website, followed by bills

for utilities, phone/cellular service, cable/ISP, insurance

and mortgage.

-- Nearly two thirds of survey respondents were offered some sort

of incentive to start paying their bills through their bank or

financial institution's website. Access to the service free of

charge all the time was by far the most prevalent offering

among these respondents (87 percent).

-- Convenience and 24/7 access to the account are the most

popular reasons respondents choose to pay bills online through

their bank/financial institutions website.

About the Harris Interactive Survey

Harris Interactive conducted the nine-question QuickQuery(SM) online survey within the United States from Feb. 27, 2004, through March 2, 2004, interviewing a nationwide cross-section of 2,233 adults ages 18 and older. Figures for age, gender, race, education, region and income were weighted where necessary to bring them in line with their actual proportions in the online population.

About MasterCard International

MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard International manages a family of well-known, widely accepted payment card brands including MasterCard(R), Maestro(R) and Cirrus(R) and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless(R) advertising campaign is now seen in 96 countries and in 47 languages, giving the MasterCard brand a truly global reach and scope. For more information go to www.mastercardinternational.com.