e-billing industry: 75% of cell phone users choose online medium for payment of their bills

Assocham has released it’s report on the growth of e-billing industry and expects the industry to touch Rs. 6.5 million by 2008-09 (currently it’s Rs. 1.9 million)

Here are a few key findings from the report :

  • Average Indian household in the top 10 Indian cities pays approximately 50 bills annually, in finance, insurance, telecommunication and utility-based companies, besides the usual electricity, water, house tax and other civic levies.
  • Mumbai had taken the lead in e-billing since 28% of its population availed of e-billing transactions followed by 22% of Delhi, 12.5% of Chennai, 12% of Bangalore, and 5.2% of Hyderabad.
  • 73% of online payers accesses the internet from home, while 79% from office; 36% from cyber cafes, 7% from friends’ place and 14% from mobile phone
  • 75% of cell phone possessor choose online medium for payment of their bills; 70% pay credit card bills online while 60% pay electricity bills online; 45% pay insurance premium online;
  • 46% online bill payers are between the age of 26-35, followed by 22% in the age 18-25 group; 20% are in the 36-45 age group, 11% in the 40-60 bracket and 2% in the 61+ age bracket
  • 83% online bill payers are male and 17% female; 43% are unmarried [source]

What clearly comes out is that majority of e-bill payers access the Internet from home – which essentially means that the majority of customer base comprise of ‘power users’; and online bill payment concept has not yet reached the next level (esp. Tier-II cities).
Given that there is a ceiling to PC adoption in India, e-billing industry needs to tap the mobile users for adoption.

What do you think are possible speed-breakers in adoption of e-billing? Easy alternate ways of payment (like auto-debit/drop boxes)? Lack of faith in credit card payment?

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