Expedited Bill Pay and Mobile Banking

Accounting to Javelin Strategy and Research, the average fee for an expedited bill payment is $8.18. This represents an increase of 45% from 2007. Javelin expects the fees to drop slightly over the next few years staying relatively stable and generating just over $1 billion in fees for banks.

Since the recession began last use, the use of expedited bill-pay services has fallen off somewhat because consumers are being more cautious about extra charges. For example, 8% of consumers used last-minute bill pay in the last 30 days when surveyed this year, compared with 13% in 2008.

Javelin suggests banks and billers promote the expedidited payments to younger users via the mobile banking channel. Banks can decrease transaction costs by promoting online banking via mobile banking customers.

Mobile is the cheapest way to provide basic banking services. For example, it costs 75 cents to check balances through paper statements, $4.00 to check via a live bank teller, $1.25 through an interactive voice system, 17 cents to check online, and only 8 cents through mobile.