The Eighth Annual Billing Household Survey provides insight on consumer billing and payment with regard to speed, security and satisfaction. Download the full report: http://fisv.co/20fbEor.

1. © 2016 Fiserv, Inc. or its affiliates.1
Annual Billing
Household Survey
Insights on Consumer Billing
and Payment Speed, Security
and Satisfaction
th

2. © 2016 Fiserv, Inc. or its affiliates.2
How
What
Where
do consumers receive and
pay their bills?
technologies, attitudes impact
consumer billing & payment behavior?
can billers improve customer
satisfaction and profitability?
Since 2008, Fiserv has sponsored the industry’s
most comprehensive survey to find out.

3. © 2016 Fiserv, Inc. or its affiliates.3
“Consumers expect everything at the speed of
life including receiving and paying bills. They
want it to be easy and now more than ever
before they want it safe and secure. Knowing
what customers want and where enables
Billers to optimize the increasingly strategic
billing and payment recurring touchpoint”
– Eric Leiserson,
Director of Research, Fiserv

4. © 2016 Fiserv, Inc. or its affiliates.4
In the past year
120 million
U.S. households
made 16 billion
bill payments

5. © 2016 Fiserv, Inc. or its affiliates.5
5%
12%
26% 27%
30%
Low Effort Low-Med
Effort
Med Effort Med-High
Effort
High
Effort
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016
Their #1 pain
is the possibility
of late payments
The majority of consumers
expend medium-to-high effort in
receiving and paying bills

6. © 2016 Fiserv, Inc. or its affiliates.6
Bill Payment
Channels Are
Fragmented
Consumers have many options – new
ones emerge while established
methods continue. Either way, the
experience is hardly seamless.

7. © 2016 Fiserv, Inc. or its affiliates.7
2014
2.9/month
2015
3.6/month
Average Number of Payment
Methods Increased Dramatically
90% of
households
use more
than one
payment
method
1
2
3
4
5
6+
10%
23%
18%
18%
14%
15%
Today’s Consumers Adjust Their
Payment Approaches to Suit Their Needs
40 percent
increase from
the previous
survey.
21 million
households change how
they pay bills from one
month to the next.
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

8. © 2016 Fiserv, Inc. or its affiliates.8
Bill Pay
Omnivores
Expect More
Options
Than Ever

9. © 2016 Fiserv, Inc. or its affiliates.9
Online Biller Site
Check
Online FI Site
Mobile Browser, App or Text
Both Biller and FI Sites
Online Nonbanking Site
In Person Check Cashing Location
Phone Call to Biller
66%
50%
48%
33%
31%
25%
24%
13%
A Dramatic Increase in Use of
Multiple Channels
Percent of Online Households Using Payment Method or
Funding Type Last Month
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

10. © 2016 Fiserv, Inc. or its affiliates.10
Not All Bills Are Treated The Same
Department Store
Auto Loan
School Loan
Natural Gas
Water/Sewer
Insurance
Mortgage/Rent
Electricity
Internet
Cell PhoneMajor Credit
Cable
Incidence
Priority
Top Priority Second Priority Third Priority
Consumer’s Bill Payment Priorities by Type and Regularity
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

11. © 2016 Fiserv, Inc. or its affiliates.11
The three new
of Billing and
Payments
S Factors
Speed
Security
Satisfaction

12. © 2016 Fiserv, Inc. or its affiliates.12
Speed
Real-time options, including
emergency payment options,
are a must.
Security
Consumers need to know
they can trust their payments
are secure.
Satisfaction
Avariety of ways to receive
and pay bills leads to greater
satisfaction.

13. © 2016 Fiserv, Inc. or its affiliates.13
Speed

14. © 2016 Fiserv, Inc. or its affiliates.14
The Need
For Speed
70% of consumers
expect same-day credit
for bill payments.
That figure rises to
90% when considering
those who expect
credit no later than the
following day.
90%
Next Day
70%
Same Day Bill Pay
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016
Credit

15. © 2016 Fiserv, Inc. or its affiliates.15
Expectations
of Faster
Processing
on the Rise
Same
Day
Next
Day
2-3
Days
Instantly
27% 43% 20% 9%
4%
15%
32%
49%
Not
Important
Neutral Important Very
Important
-64%+59% +54% -31%
The Importance of Real-Time
and Same-Day Payment
Processing to Consumers
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

16. © 2016 Fiserv, Inc. or its affiliates.16
What’s behind the increase?
Only wanted to pay once
Registering takes too much time
Didn’t want another
name and password
Didn’t want more email
solicitations
48%
43%
36%
31%
In 2015, 26% Used Guest Check Out
Option at Biller Sites to Pay Bills
One in four
households reports
using the guest
checkout option at
biller sites due to
convenience and
password fatigue .
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

17. © 2016 Fiserv, Inc. or its affiliates.17
Need for Speed:
Expedited
Bill Payments
When thinking about receiving and paying
bills, the possibility of late payments is
consumers’ #1 concern. Nevertheless...
More than one-third
of consumers paid a bill after the due date
in last 12 months and
65 percent had to pay a late fee.
Nearly half of those who paid a bill late
cited cash-flow difficulties.
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

18. © 2016 Fiserv, Inc. or its affiliates.18
Consumers Expect an Expedited
Payment Option Expedited bill payments
increase customer
satisfaction with the biller
65%
Almost 2/3 of consumers
expect billers to
offer emergency payments
59%
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

19. © 2016 Fiserv, Inc. or its affiliates.19
Security

20. © 2016 Fiserv, Inc. or its affiliates.20
Security Issues
Weigh Heavily on
People’s Minds
More than 27 million
people say they are more
concerned about security
than they were a year ago.
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

21. © 2016 Fiserv, Inc. or its affiliates.21
Concerns About Security
Have Increased
Thinking receiving and paying
household bills, which of the
following causes the most concern?
Consumer are most
concerned with…
Paying
Late
SecurityPaper
Clutter
Time
Spent
39%
26%
24%
19%
Rose from number 6 ranked last year to number 2
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

22. © 2016 Fiserv, Inc. or its affiliates.22
33%
Biller Direct and Bank Bill Pay Tied With Cards
Perceived As Most Secure
Consumers feel cards are the
most secure for paying bills
Credit , Debit,
Prepaid Cards
57%
Consumers feel these methods are
the most secure for paying bills
Banking
Bill Pay
Biller
Direct
Mail
Email
Non-
banking
Site
32%
2%
8%
25%
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016
Checking ACH43%
Its important Billers offer:
• 86% Credit/debit/prepaid cards
• 74% Checking ACH

23. © 2016 Fiserv, Inc. or its affiliates.23
Satisfaction

24. © 2016 Fiserv, Inc. or its affiliates.24
A variety of bill receipt and payment
options regardless of size
• Expedited bill payment options
• Mobile bill pay
• Paperless electronic bill
What Makes Customers
Happy

25. © 2016 Fiserv, Inc. or its affiliates.25
Consumers Expect Options
Regardless of Size of Biller
Do more options
increase customer
satisfaction?
71%
2015
43%
2014
Should small billers
such as municipal
providers offer the
same billing and
payment options as
large companies?
79%
YES
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

26. © 2016 Fiserv, Inc. or its affiliates.26
Enabling Emergency Bill Payments through
Bank Bill Pay Likely to Enhance Satisfaction
With Billers
55%
Increase
44%
No Change
1%
Decrease
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016
Bill Pay

27. © 2016 Fiserv, Inc. or its affiliates.27
64% of consumers who
pay bills via mobile say it
increases their customer
satisfaction
Mobile Bill Pay Increases
Satisfaction
PAY
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

28. © 2016 Fiserv, Inc. or its affiliates.28
Percent of Mobile Bill Payers
Grew by 22% in 12 months
Choosing to pay bills
on a mobile phone is
all about convenience
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

29. © 2016 Fiserv, Inc. or its affiliates.29
Mobile Bill Payment Transactions Are
Spread Across Multiple Channels
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

30. © 2016 Fiserv, Inc. or its affiliates.30
Mobile Bill Pay Is Growing Across the
Board; By Income and Generation
Who pays bills with their
mobile phone year over year
Income
<$50k
Income
$50k-
$99k
Income
>$100k
40%
21%
56%
32%
39%
30%
Boomers MillennialsGenXSeniors
10%
2%
18%
8%
42%
24%
60%
54%
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

31. © 2016 Fiserv, Inc. or its affiliates.31
Likelihood of consumers
switching to the competition
Receiving Electronic Bills Likely to Improve
Customer Satisfaction and Loyalty
Increased
satisfaction
66%
34%
No
Difference
66%
Increased
Satisfaction
Less
Likely
More
Likely
No Difference
36%
51%
13%
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

32. © 2016 Fiserv, Inc. or its affiliates.32
Consumers Receiving Both PaperAnd
ElectronicAre Interested In Turning Off Paper
25%
All Paperless
50%
Some
Paperless25%
All Paper
22%
Not
Interested
27%
Interested
25%
Not Sure
26%
Very
Interested
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016
Status Today E-bill interest level

33. © 2016 Fiserv, Inc. or its affiliates.33
Likelihood of consumers
switching to the competition
Viewing/Paying Bills at a Bank Site
Improves Customer Satisfaction and Loyalty
Increased
satisfaction
66%
34%
No
Difference
65%
Increased
Satisfaction
Less
Likely
More
Likely
No Difference
46%50%
4%
Decreased
Satisfaction
1%
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

34. © 2016 Fiserv, Inc. or its affiliates.34
Paperless E-bill Adoption Rates
BILL16%
24%
26%
27%
28%
31%
32%
33%
36%
35%
43%
45%
Water/sewer
Natural gas
Electricity
Dept. store credit card
Mortgage
Major credit card
Insurance
Cable/satellite
Auto loan
ISP
School loan
Cell phone
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

35. © 2016 Fiserv, Inc. or its affiliates.35
Millennials
want to turn
off paper
Most open to
activating e-bills
when they
activate their
account
Most open to
activating e-bills
when they start
paying online
Prefer to set
up with
recurring
payment
Who to Target for E-bill and E-Payments
and When
Source: Eighth Annual Billing Household Survey, Fiserv Inc., 2016

36. © 2016 Fiserv, Inc. or its affiliates.36
Methodology: 8th Annual Billing Household Survey
In 2015, Fiserv Biller Solutions sponsored a replication of its annual
online survey
• The survey was completed by 3,021 respondents representative of
100M households using the internet
• Typical margin of error is +/-1.7% for percents based on 3000
respondents
• Will vary based on base size and percent
Survey was designed to provide the current view of the consumer
billing and payment marketplace
• Results compared to similar surveys sponsored by Fiserv to capture
ongoing and emerging trends

37. © 2016 Fiserv, Inc. or its affiliates.37
Consumer Billing and Payment Practices and
Preferences are Undergoing Dramatic Changes
• Speed, security and satisfaction
are dominating the bill pay
landscape
• Multiple easy, simple and fast
options are essential for bill pay
omnivores
• Growth expected in mobile and
card funded bill payments
• Opportunity exists to boost
paperless adoption at service set
up and among recurring bill
payees
Download our research paper on
fiserv.com/billers