A total of 69.7 million households with Internet access now use online banking services to access balance, account history and to transfer money between accounts. In addition, 64.4 million households pay at least one bill online at a bank website or at a company website.

Geoff Knapp

"We believe that consumers will continue to conduct more and more of their financial activities online," said Geoff Knapp, vice president, Online Banking & Consumer Insights, Fiserv.

"Online banking and bill payment is a free service, and a convenient and environmentally friendly way to bank. Consumers are actively becoming fans of the user-friendly, secure services financial institutions are implementing."

Among those surveyed, 41 percent of online banking users said they planned to pay more bills online at their financial institution’s website in the coming months, while 35 percent who pay bills directly at company websites said they plan to pay more bills online at those sites.

The survey found the major reasons people pay bills online were:

 Speed - 79 percent of consumers said that they preferred to pay bills online because it was faster than other payment methods.

 Ease of Use - 72 percent of consumers said paying online was easier than paying by check.

 Cost Savings - 71 percent of consumers said they liked saving money on stamps.

 Control - 71 percent of consumers said that paying bills online gave them more control over the timing of their payments.

The survey also found people who pay bills online at a bank website are more likely to continue doing business with their bank.

49 percent of consumers who use online bill pay said they are less likely to switch banks due to their experience, up from 43 percent last year.

67 percent of online bill pay users would recommend their bank to a friend or relative.

Over a period of three months, 38 percent of online bill pay users recommended the service to others. Those recommending the service did so an average of two times.

Security concerns about online banking decreased from 17 percent in 2007 to 13 percent in the latest survey. Overall, online security was third among barriers to online banking this year compared to its number-one spot in 2007.

An estimated 31 million households use online banking Web sites to pay bills, 47.9 million households use biller Web sites and 16 million use both online banking and biller sites to receive and pay bills. About 63.1 million households pay at least one bill online in an average month, an increase from 61 million in 2007. These households collectively paid 934 million bills in a typical month.

Internet using households pay an average of 11 bills per month. Online bill payments at bank and biller Web sites made up 42 percent of total monthly payment, followed by 31 percent of bills paid by check.

Fifty-one percent of survey respondents said the environment was a reason they chose to pay bills online. Saving time and gaining control over their finances were benefits cited by 44 percent of respondents.

Other reasons for paying bills online included reducing clutter, saving gas, and not having to buy stamps.

"As more consumers gain experience and become more comfortable using the Internet, their confidence in online security grows and we see an increase in the adoption of online banking and bill payment services," said Todd Lesher, division president, CheckFree electronic Banking Services, now part of Fiserv. "

"For a minority of users who haven’t used the Web as long, we see that security concerns remain a significant barrier to online banking and bill payment adoption."