Brand spend working for BPay

A survey by TNS, commissioned and published by BPay over payments preferences, revealed a "continued decline in traditional payment methods as the online channel continues to grow."

In its periodic newsletter yesterday BPay published a summary of the finding from the "Usage and Attitude study".

This study found that 86 per cent of Australians used the internet to make a bill payment last year, an increase of six percentage points over 2007 figures.

The study found 77 per cent of people made payments by direct debit, 54 per cent queued to make payments (for instance, at the Post Office, bank or merchant) and 19 per cent paid by cheque.

Of the 86 per cent who paid a bill online, almost three quarters (71 per cent) used the BPay service.

BPay estimated that households and businesses paid for 38 per cent of all bills via banks and credit unions using BPay, followed by direct debit (27 per cent), direct to biller (21 per cent) and Australia Post (nine per cent).

In the newsletter BPay said it was "now the number one choice for payments such as body corporate fees and tax, and increasingly consumers are using it to invest in shares or managed funds, pay membership fees or top up their super."

Its members have funded consistent advertising promoting the BPay service over the last couple of years, perhaps to drum up biller numbers and maintain demand, given that essentially the same service is available through internet banking, at least through "pay anyone", but without the need to incur registration and merchant fees.

On the other hand registration, through banks, with BPay provides merchants with the option of payment by telephone and may also help speed up payments (given that research suggests merchants are paid faster when they offer more ways to pay).

BPay has more than 16,000 billers and is adding new biller codes at a rate of approximately 1000 per year.