Money Mindset Index shows evolving bill payment preferences; Decrease in traditional pay-by-mail activity in the coming year
ENGLEWOOD, Colo.—(BUSINESS WIRE)—The Western Union Company (NYSE: WU), a leader in global payment services, today released findings from the Western Union® Payments Money Mindset Index, providing a revealing look at consumer migration to new bill payment technologies.
The survey found that consumer preference for online and mobile bill payments continues to grow, with 39 percent of consumers in the United States saying they will pay more bills online in 2013, and 12 percent intending to pay more bills by mobile phone.
Mobile adoption for urgent, same-day payments is also on the rise: 14 percent of consumers report that they will make an urgent payment via their mobile device in the next six months. Furthermore, 25 percent of consumers report that they will send fewer checks in the mail to pay their bills.
“Consumers are increasingly looking for new ways to manage their bills, which points to the need for continued innovation by service providers across the payments industry,” said David Shapiro, senior vice president, Payments, Western Union. “Less than one-third of payments occur via non-electronic channels, and consumers continue to use a mix of payment methods that provide enhanced choice, flexibility, control and convenience around their lifestyles and cash flow.”
Bill Payment Landscape
The Money Mindset Index also reveals the mix of channels consumers are using to pay their bills, as they continue to seek choice and flexibility in their payment options:
Bill Payment Strategies
Consumer approach to bill payments will continue to evolve in 2013. According to the Money Mindset Index, consumers will revisit how they make and organize their bill payments, with 26 percent indicating they will set new priorities for which bills get paid first. Additionally, 15 percent of consumers said they will wait longer to pay their bills.
“Western Union understands that consumers are seeking new bill payment options, and we are providing solutions to market through a multi-product, multi-channel strategy,” said Shapiro. “As an organization, we assist billers in delivering innovative payment alternatives to their customers, including mobile, SMS and mobile web, as well as walk-in, phone and online payment services, so billers can stay ahead of evolving consumer demand.”
The Western Union Payments Money Mindset Index, conducted by Javelin Strategy & Research, has a margin of error of 1.76 percentage points and was conducted in December 2012 with 3,002 respondents. The random sample survey targeted online respondents based on representative proportions of geography, gender, age, income, and ethnicity as compared to the overall U.S. population. Consumer bill payment channel mix in the United States is based on Western Union market research, July 2012.
For more information on Western Union Payments, visit http://payments.westernunion.com.
About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of December 31 2012, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of approximately 510,000 agent locations in 200 countries and territories. In 2012, The Western Union Company completed 231 million consumer-to-consumer transactions worldwide, moving $79 billion of principal between consumers, and 432 million business payments. For more information, visit www.westernunion.com.
Source: Western Union
Andrew Silver, 1 720-332-4119