Online bill payment results in more profitable and loyal customers.

• Position: Marketing News - Brief article

Customers who pay bills online are more profitable and loyal to their financial institutions, according to a study sponsored by Fiserv Inc., Brookfield, Wis.

Customers who began using online bill payment during the course of the study delivered 15 to 20 percent more profit to their financial institution when compared to similar customers who did not adopt the online service. Further, customers who paid bills online were 76 percent less likely to churn, or leave the financial institution.

The study also showed that bill payment data can be used to reliably predict...