Hype or The Real Deal? Eric Leiserson Mobile Billing and Payment: Utility Benchmarking and Latest Consumer Trends Hype or The Real Deal? Eric Leiserson Use orange title slide for on-screen presentations only. To print, use the following white title slide instead of this one to save toner. Utility Payment Conference

The Smartphone World We Live In

The Smartphone World We Live In “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!”

Key Question 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

The Ubiquitous, All Inclusive, Incredible Hyper Growth Smartphone Marketplace

of Adults Have a Smartphone of Adults Have a Smartphone Hyper Changing Mobile Habits 84 percent of smartphone users have accessed the Internet on their phone in the past week 50% 50% 21 percent of mobile phone owners have used mobile banking in the past 12 months of Adults Have a Smartphone of Adults Have a Smartphone 56 minutes a day is the average amount of time Android Users spends interacting with mobile web and apps 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 % of Adults who own a smartphone 2011 2012 By Age Group Income Level Education 18-24 Less <30K < High school 25-34 30-49K High School Grad 35-44 50-74K Some College 45-54 75K+ College + 55-64 Source: Pew Research Center’s Internet & American Life Project, 2012

U.S. Smartphone Penetration by Ethnicity Source: Nielsen, Mobile Insights, Q1 2012

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

Mobile Banking Adoption Will Also Fuel Bill Pay and E-bill 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 The Potential: If the concerns of non-users of mobile payments were addressed, 34% say they would pay bills online using their phone Source: Consumers and Mobile Financial Services, Federal Reserve, 2012

Consumer Mobile Presentment and Payment Findings from 2012 Billing Household Survey

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

Type of Bills Paid Through Mobile Device 2011 vs. 2012 Which bills did you pay through your mobile device? 2012 2011 Sources: Billing Household Survey, Fiserv, Inc., 2011 & 2012

Source: Billing Household Survey, Fiserv, Inc., 2012 Almost One in Three Very Interested/Interested in Viewing and Paying Bills from Smartphone; Prefer Multiple Options 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? Through a mobile app Through mobile browser Base: Among smartphone owners who are very interested and interested in mobile billing and payments Source: Billing Household Survey, Fiserv, Inc., 2012

Source: Billing Household Survey, Fiserv, Inc., 2012 Bill Payment Main Function Consumers Desire In A Biller App or Mobile Website 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 Bill Pay Access through Smart Phone Sources: Billing Household Survey, Fiserv, Inc., 2012

Majority of Bills Funded with Cards Followed by ACH 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

Mobile Bill Pay Benchmark Study: Utility Results

Main reasons for Billers’ mobile plans are customer service, billing and payment, and customer demand Do you see the development of the Mobile device channel providing a means to: Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Billing & payment along with service updates are top mobile priorities for billers What are your organization's priorities among these potential Mobile service options? ("1" is most important priority, "2" is second most important, etc.) 1 2 3 4 5 6 Mobile bill pay 26% 36% 13% 3% Service updates 22% 4% 18% 29% Pmt alerts/notifications 21% 24% 11% 4% Recent acct activity/usage 18% 7% 13% 18% Bill presentment 16% 22% 11% 7% Customer communications 2% 9% 33% 34% 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 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 Who (or which area) has responsibility for Mobile Bill Pay and Presentment in your organization? Check all that apply Does your organization have an overall mobile strategy? Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Majority of billers plan to outsource billing and payment functionality How do you envision using an outsourced provider for mobile functionality? Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Mobile web and downloadable app are both preferred by billers What would be your preferred approach to providing Mobile Bill Pay and Presentment to your customers? Check all that apply Mobile web version 68% Downloadable full self-service app 64% Dedicated bill pay app 15% 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 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.) 1 2 3 4 5 Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

Questions and Answers