Leveraging e-Delivery to Maximize e-Payments Jeff McKenzie - Vice President, Integrated Solutions Neopost USA

Comprehensive Research in Multi-Channel Customer Communication Future of Multi-Channel Transactional Communications (InfoTrends 2010 & 2013) Simplifying CCM Whitepaper (Neopost/Infotrends 2013) Market research from ReD Associates (2012 – 2013) 10 years of R&D in the CCM & multi-channel space

Bill Payment Methods 2/3 of consumers still pay by check

Delivery Channel Most Used Consumer continue to receive bills via USPS

#1 reason consumers choose a channel is convenience.

Influence of “Early Adopters” on the market Inconvenience themselves to adopt new technology Most e-delivery initiatives plateau around +/- 20% Majority of Consumers …adopt technology when it becomes more convenient than the alternative

How Convenient is Paper? Consider what you must do to receive a bill or statement in the mail… How difficult is it to open and review? Now consider the alternative you provide to your customers…

Payment via website 1.Receive physical bill 2.Log on to computer 3.Navigate to website 4.Enter user name 5.Enter password 6.Navigate to current statement 7.Review 8.Navigate to “pay my bill” 9.Enter additional data 10.Confirm payment amount 11.Submit Comparison Payment via mail 1. Receive physical bill 2. Open 3. Review 4. Write check 5. Mail Additional Barriers: Phishing – links alternative Remembering User Name/Password Security concerns

Preference - Paper Checks Consumers want to move away from paper checks…

How do you capitalize on this consumer preference? Customer receiving physical bill are more likely to pay with a physical check. Customers who suppress paper are more likely to pay electronically. PAYMENT TECHNOLOGIES ARE NOT THE PROBLEM Suppress paper = Electronic payment

Top Reasons for Paper Bill Must Resolve

What are the alternatives to paper? Biller Website Consolidator Website Attachment Mobile AppText/SMS Mobile Website Mobile Tablet App Digital Mailbox Non-Bank Consolidators Highly Accepted Technologies Early Adopter Technology

Paper Alternatives Biller Direct/Self Service PortalConsolidator Website w/ Attachment

Presentment - Channel growth (CAGR) Web presentment declines at the same rate as physical Mobile and growing at 32%

Website (biller direct & consolidator) 49% said that fetching their bill on a biller’s website is not a good alternative to paper 61% of consumers said remembering multiple different usernames & passwords is a barrier to paperless adoption Barriers to going paperless

Consumer Delivery Preference Customers rank their top choices

channel preference HOW DO YOU LIKE TO USE THE CHANNEL? (PROVIDERS) HOW WOULD YOU LIKE PROVIERS TO USE THE CHANNEL? (CONSUMERS)

Bill Payment through Attachment

Is w/ attachment the answer? It’s Convenient… – It’s already mobile – no difference between devices – It’s been adopted – smartphones are used more to read than make phone calls – It’s a replication of physical mail – no change in behavior – It’s preferred - % of consumers who prefer to receive bill via

Final Note Web portal solutions are critical to an overall strategy Increasing paper suppression rates will drive e-payment adoption Solution is simple…make electronic as convenient as paper.

Jeff McKenzie Vice President, Integrated Solutions

REFERENCE

Smartphone Owners  Are more likely to use their device for than for making phone calls Source: Adobe 2013 Digital Publishing Report Q: For which of the following do you typically use a tablet/smartphone? 72% 67%