Why do consumers use electronic bill payment services? What do the differences between
nonusers, low users, and high users imply about the potential future market for these services?
How might public policy evolve in the future? Analyzing a unique consumer survey conducted
by the Federal Reserve's Retail Product Office, the author finds important differences between
nonusers, low users, and high users of electronic bill payment. The analysis suggests that the
industry will need to address fundamental customer needs before a broader portion of
consumers will adopt these services.