We all know e-bills are better for the planet, reduce clutter and cost less than traditional paper bills. But did you know e-bills produce higher customer satisfaction, loyalty and profitability? And yet only 23 percent of bills sent in the U.S. are sent electronically, despite customers’ growing acceptance of going paperless. How will you drive e-bill adoption for your organization in 2015? In this presentation: • The latest data on e-bill trends and penetration rates across industries • The hidden opportunities for growth and strategies to advance e-bill adoption • How mobile bill pay and alerts are driving e-bill adoption • How e-bill distribution through banks leads to lower payment costs and higher customer satisfaction

1. The State of E-bill in 2015
Roger Johnston, Ph.D., Research Scientist, Fiserv
Eric Leiserson, Senior Research Analyst, Fiserv
February 4, 2015

2. © 2015 Fiserv, Inc. or its affiliates.
Agenda
• Welcome and Introductions
• Overall E-bill Trends
• Best Practices
• Q and A
Dr. Roger Johnston
Eric Leiserson
2

3. The State of
E-bill Trends
is…

4. © 2015 Fiserv, Inc. or its affiliates.4
Puzzling…
Robots Invade the
Consumer Electronics
Show in January

5. © 2015 Fiserv, Inc. or its affiliates.5
 Correspondence
 Legal Signatures
 Coupons
 Books, Magazines
and Newspapers
 Photos
U.S. Consumers Have Moved Many Paper
Based Activities to Digital

6. © 2015 Fiserv, Inc. or its affiliates.6
70% Bill Payments are
Electronic
23% Bills Sent are
Electronic
The Majority of Bill Payments are Electronic—
Bill Presentment Not So Much
Sources: Mobile Bill Pay : Strategies to Grow Adoption and Build Engagement, Javelin Strategy and Research, 2014.
The State of E-bill, Fiserv Inc., 2015

7. © 2015 Fiserv, Inc. or its affiliates.
Does America Have a Paper Bill Addiction?
“I’m the Paper Bill Fairy. I’ll need to come back
with a much bigger wand!”
7

8. © 2015 Fiserv, Inc. or its affiliates.8
The State of E-bill Growth in 2015 is Slow but Steady
Paperless E-bills Sent as a Percent
of All Bills Distributed in U.S.
Source: The State of E-bill, Fiserv Inc., 2014

9. © 2015 Fiserv, Inc. or its affiliates.9
The State of E-bill in 2015 Varies by Industry Type
Source: The State of E-bill, Fiserv Inc., 2014

10. © 2015 Fiserv, Inc. or its affiliates.10
Consumer Barriers to Adoption
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
42%
Comfortable with
Current System
37%
Record Keeping
21%
Security Concerns
20%
Some Bills
Easier to Read

11. © 2015 Fiserv, Inc. or its affiliates.
0
5
10
15
20
25
30
35
40
45
50
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
1974
1975
1978
1981
1985
1988
1991
1995
1999
2001
2002
2006
2007
2008
2009
2012
2013
2014
Mail Volume Postage Rate
Sources: USPS Household Diary Study 2013; The National Bureau of Economic Research, 2013
FirstClassPieces(M)
PostageRates(Cents)
First Class Mail Volumes and First Class
Postage Rates 1974-2014
USPS to Raise Rates
11

12. © 2015 Fiserv, Inc. or its affiliates.
Types of Bills Paid by Mail by Percent of
Households 2007 - 2013
0%
10%
20%
30%
40%
50%
60%
70%
2007 2008 2009 2010 2011 2012 2013
Electric
Telephone
Credit Card
Insurance
Cable/Satellite TV
Water/Sewer
Natural Gas/ Propane
Medical
Cell Phone
Rent/Mortgage
Internet Service
Taxes
Car Payments
Sources: USPS Household Diary Study 2013; 2010; 2007
12

13. © 2015 Fiserv, Inc. or its affiliates.
Transaction Mail Volume: Bills, Payments, and
Statements 2005 - 2013
0
5000
10000
15000
20000
25000
30000
35000
40000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Bills Payments Statements
-25%
Sources: USPS Household Diary Study 2013; 2010; 2007
(Millions of
Pieces)
-15%
-56%
13

14. © 2015 Fiserv, Inc. or its affiliates.14
E-bill is a Natural Triple Bottom Line Technology
Billers And Banks Consumer Environment
In 1 year the avg. e-bill
household saves
6 pounds of paper &
23 pounds of wood
Cost Savings
Customer Satisfaction
Digital Engagement
Efficiencies
Less Clutter
Convenience
Fewer Late Payments
Happier
Sources: Seventh Annual Billing Household Survey, Fiserv Inc., 2014, PayItGreen.org, 2015
Biller Site
30%
Bank Site
49%

15. © 2015 Fiserv, Inc. or its affiliates.15
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
Sizing the E-bill Adoption Opportunity; Interest in
Activating E-bills In the Next 12 Months
Base: Among Biller Direct Payees

16. © 2015 Fiserv, Inc. or its affiliates.16
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
E-billing Increases Customer Satisfaction and
Decreases the Likelihood of Switching
Receive E-bills at
Bank Sites
Receive E-bills at
Biller Sites

17. © 2015 Fiserv, Inc. or its affiliates.17
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
Bill Payment Due Alerts Increase Likelihood of
Paperless Billing

18. © 2015 Fiserv, Inc. or its affiliates.
Year over Year Adoption Rates of Billers Who
Offer Mobile Functionality
N= 40 Biller Paired year/year comparisons
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
Compare to average of 3% increase for Billers who do not
offer MBPP Functionality
Mobile E-bills Mobile Bill Pay Mobile Alerts
18

19. © 2015 Fiserv, Inc. or its affiliates.
“Old” and “New” E-bill Service Providers
Volley
Zumbox
Manilla
Mint Bills
Inlet
19

20. Best
Practices

21. © 2015 Fiserv, Inc. or its affiliates.21
Gen Y 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 and When
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

22. © 2015 Fiserv, Inc. or its affiliates.22
Best Practices: Tryvertising in the Bank Channel

23. © 2015 Fiserv, Inc. or its affiliates.
Charge for Paper Bills? 65% of Consumers Say it
Would Make Them More Likely to Adopt…But…
23
.

24. © 2015 Fiserv, Inc. or its affiliates.24
More Best Practices Are Featured in the Webinar:
Fiserv State of Ebill Webinar Recording

25. © 2015 Fiserv, Inc. or its affiliates.
Key Takeaways
• E-bill Adoption is Steady, Albeit
Incremental
• Enormous Upside Business Potential
• Omni-Channel, Mobile and Millennials
are Game Changers
• Go To The Fiserv.com Resource
Center for the White Paper Five
Emerging and Proven Ways to Grow
Adoption and the E-bill Tryvertising
Video
25

26. Dr. Roger Johnston, Research Scientist, Fiserv
Roger.Johnston@fiserv.com
Eric Leiserson, Sr. Research Analyst, Fiserv
Eric.Leiserson@fiserv.com
Question
and Answer

27. The State of E-bill in 2015
Roger Johnston, Ph.D., Research Scientist, Fiserv
Eric Leiserson, Senior Research Analyst, Fiserv
February 4, 2015