IDC Predicts Explosive Growth Will Lead to a $1 Billion Opportunity in the Electronic Bill Presentment and Payment Market in 2004

FRAMINGHAM, MA – MARCH 27, 2000 – Momentum is starting to build in the Internet-based electronic bill presentment and payment (EBPP) market. In 1999, worldwide revenues jumped 540%, landing at $32 million, but this is only a small stepping stone in comparison to how high this market will climb. IDC forecasts the market will escalate at a 100% compound annual growth rate through 2004, bringing revenues over the $1 billion mark.

Internet-based electronic bill presentment and payment is the process that enables bills to be created, delivered, and paid over the Internet.

"Buying products over the Internet with a credit card has become a common occurrence, but viewing the credit card bill itself and submitting a payment to settle it electronically is still considered a novelty," said Albert Pang, research manager for IDC's eCommerce Software program. "However, this will change as electronic bill presentment and payment products become more sophisticated with the inclusion of features such as secure email delivery and as the technology becomes increasingly implemented in business-to-business ecommerce."

According to IDC, the real opportunity in this market rests with transaction-based revenues, which will skyrocket from $700,000 in 1999 to $825 million in 2004. "Much of this growth is based on the potential use of electronic bill presentment and payment to replace the sheer number of paper bills circulated every year," Pang said. IDC estimates that in the United States alone, 1.5 billion bills are sent to consumers each month, reaching 18 billion transactions and generating nearly $6 billion in processing fees a year. However, only a portion of these transactions will be handled by electronic bill presentment and payment systems. "Consumers initially will be resistant to this technology," Pang said. "People tend to be overly cautious when it comes to embracing new ways to handle their personal finances.

"This is a market that is still in its infancy, but it has the potential to blossom into a staggering opportunity," he added.

IDC's new report Electronic Bill Presentment and Payment Market Forecast and Analysis, 1999-2004 (IDC #B21604) analyzes the Internet-based electronic bill presentment and payment market. The report forecasts application and transaction revenue and volume through 2004. The revenue forecast is segmented by geographic region. The report discusses market opportunities, examines market trends, and provides snapshots of the leading vendors. For the top vendors, the report shows Internet-based electronic bill presentment and payment application transaction revenue and revenue share, number of customers and typical selling price for 1999. To order a copy of the report, contact Patrick Steeves at 1-800-343-4952, ext. 6787 or at If you are interested in IDC's eCommerce Software research service, contact Pat Duhl at 949-442-4038 or at

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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