Hype or The Real Deal?

Eric Leiserson

Mobile Billing and Payment: Utility Benchmarking and Latest Consumer Trends

Utility Payment Conference

The Smartphone World We Live In

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“I’m still discovering cool stuff I can do with my smartphone. Today I sent a photo to my mom,

bought some music, trimmed my sideburns, blended a smoothie and received and paid my

bills!”

The Smartphone World We Live In

Key Question

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With all the coverage and activity on mobile payments where are consumers and billers (utilities) with respect to Mobile Bill Pay and

Presentment (MBPP)?

Overview

• The Ubiquitous, All Inclusive, Incredible Hyper Growing Smartphone

• New Consumer Mobile Bill Presentment and Payment (MBPP) Insights from the 2012 Billing Household Survey

• New Biller MBPP Insights from clients and Fiserv

Commissioned Mobile Biller Benchmark Study

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The Ubiquitous, All Inclusive, Incredible Hyper Growth Smartphone Marketplace

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• 56 minutes a day is the average amount of time Android Users spends interacting with mobile web and apps

• 84 percent of smartphone users have accessed the Internet on their phone in the past week

• 21 percent of mobile phone owners have used mobile banking in the past 12 months

Hyper Changing Mobile Habits

of Adults

Have a

Smartphone

50% 50%

of Adults

Have a

Smartphone

Sources: Nielsen, Mobile Insights, Q1 2012, Google,2012, Pew Research Center’s Internet & American Life Project 2011 and 2012, Consumers and Mobile Financial Services, Federal Reserve, 2012

Smartphone Ownership is Increasing Across all Demographics

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18-24

25-34

35-44

45-54

55-6475K+

50-74K

30-49K

Less <30K

High School Grad

< High school

College +

Some College

% of Adults who own a smartphone

By Age Group Income Level Education

Source: Pew Research Center’s Internet & American Life Project, 2012

2012

U.S. Smartphone Penetration by Ethnicity

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Source: Nielsen, Mobile Insights, Q1 2012

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Mobile Bill Payments

Under Banked Have Higher Levels of Mobile Payments and Mobile Bill Payments

Mobile Banking Adoption Will Also Fuel Bill Pay and E-bill

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Source: Consumers and Mobile Financial Services, Federal Reserve, 2012

The Potential: If the concerns of non-users of mobile payments were

addressed, 34% say they would pay bills online using their phone

20% of Americans with a both a bank account and a mobile phone has used mobile banking in the last 90 days.

25% of which paid a through their Bank’s Mobile Web or App

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Consumer Mobile Presentment and Payment Findings from 2012 Billing

Household Survey

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Mobile Bill Payment Adoption Among Online Consumers Increased 33% Between 2011 and 2012 from 6% to 8%

Why Almost 8 Million Consumers Paid Bills Over Their Mobile Phone

Source: Billing Household Survey, Fiserv, Inc., 2012

• Among Smartphone Owners: 12% Paid a Bill Through Their Smartphone, an Increase of 41%

• 3% of offline households paid a bill through their mobile phone

Type of Bills Paid Through Mobile Device 2011 vs. 2012

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2012 2011

Which bills did you pay through your mobile device?

Sources: Billing Household Survey, Fiserv, Inc., 2011 & 2012

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Almost One in Three Very Interested/Interested in Viewing and Paying Bills from Smartphone; Prefer Multiple Options

Through mobile browser

Base: Among smartphone owners who are very interested and interested in mobile billing and payments

Through a mobile app

What is your interest level in a biller providing multiple billing and payment options such as viewing bills, making payments and seeing

nearby walk-in payment locations?

Source: Billing Household Survey, Fiserv, Inc., 2012

Bill Payment Main Function Consumers Desire In A Biller App or Mobile Website

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What are the main functions you would like for a biller to provide via a mobile browser or app:

Source: Billing Household Survey, Fiserv, Inc., 2012

Using Mobile Browser to Reach Provider’s Website Most Common Method

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Bill Pay Access through Smart Phone

Sources: Billing Household Survey, Fiserv, Inc., 2012

Majority of Bills Funded with Cards Followed by ACH

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Of the bills paid using the texting, browser or app capabilities of your cell phone, how many were:

Sources: Billing Household Survey, Fiserv, Inc., 2011 &

2012

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Mobile Bill Pay Benchmark Study: Utility

Results

Main reasons for Billers’ mobile plans are customer service, billing and payment, and customer demand

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Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Do you see the development of the Mobile device channel providing a means to:

Billing & payment along with service updates are top mobile priorities for billers

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What are your organization's priorities among these potential Mobile service options? ("1" is most important priority, "2" is second most important, etc.)

4%

Service updates 22% 4%

36% 13% 3%

33% 34%

Bill presentment 16% 22% 11% 7%

Recent acct activity/usage 18% 7% 13% 18%

Pmt alerts/notifications 21% 24% 11%

1 2 3 4 5 6

Customer communications 2% 9%

18% 29%

Mobile bill pay 26%

Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Billers believe billing & payment is a main mobile activity for consumers at their site

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What do you customers typically do with your organization while they interact through their mobile device?

Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Mobile is in the planning stages for most utilities and is handled by multiple groups in their organization

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Does your organization have an overall mobile strategy?

Who (or which area) has responsibility for Mobile Bill Pay and Presentment in your organization? Check all that apply

Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Majority of billers plan to outsource billing and payment functionality

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Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

How do you envision using an outsourced provider for mobile functionality?

Mobile web and downloadable app are both preferred by billers

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What would be your preferred approach to providing Mobile Bill Pay and Presentment to your customers? Check all that apply

Dedicated bill pay app 15%

Downloadable full self-service app 64%

Mobile web version 68%

Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Mobile web and iOS apps are top preferences for providing billing information to customers’ mobile devices

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1 2 3 4 5

If possible, what approaches have you followed,(or anticipate) using to provide billing information to customers’ mobile devices? ("1" is most preferred, "2" is second most preferred, etc.)

Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

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Questions and Answers