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A LOOK AT HOW ONLINE BILL PAYMENTCHANGES THE eCOMMERCE LANDSCAPE
A MODASolutions™ White Paper
MODASolutions2207 Concord Pike, #510Wilmington, DE 19803-2908866-365-6632www.MODASolutions.com www.eBillme.com September 2007
 
Table of Contents
1. Executive Summary.....................................................................3
 
84 million: The number of consumers available to drive new sales...................................3
 
More payment options equal more sales...........................................................................3
 
Online banking unlocks access to new consumer groups.................................................3
 
2. Consumer Behavior and Online Payments................................4
 
Security and trust................................................................................................................4
 
Control and cash management..........................................................................................4
 
Credit limitations.................................................................................................................5
 
Lack of credit cards............................................................................................................5
 
3. The Merchant Perspective...........................................................6
 
Reducing costs...................................................................................................................6
 
The high cost of fraud.........................................................................................................6
 
Increased sales..................................................................................................................7
 
Additional factors................................................................................................................7
 
4. The Power of Online Banking......................................................8
 
Impressive growth and high potential.................................................................................8
 
Profile of online banking customers...................................................................................8
 
Small businesses................................................................................................................9
 
Online bill payment: top-selling application........................................................................9
 
5. Online Banking Increases Online Sales...................................10
 
Value to consumers..........................................................................................................10
 
Value to merchants...........................................................................................................10
 
Value to banks..................................................................................................................10
 
6. About eBillme™..........................................................................11
 
Payment process..............................................................................................................11
 
eBillme processing platform.............................................................................................12
 
7. Conclusion..................................................................................13
 
About MODASolutions...................................................................14
 
 
1. Executive Summary
This white paper explores the buying behavior of online consumers and the impact of thisbehavior on merchant profitability. This document also explains how online banking can helpmerchants decrease transaction processing costs, capture new customers, and managetransaction risk more effectively.
84 million: The number of consumers available to drive new sales 
Estimates show
84 million customers already bank online
. However, 80 million consumerswho use the Internet
1
do not buy online. The primary reasons include a perceived lack ofsecurity, an unwillingness to disclose personal information, and the absence of acceptablepayment methods. Regardless of merchants’ best efforts to close sales online, many consumersabandon their shopping carts at the payment page. At first glance, the abundance of abandonedonline shopping carts represents millions of dollars in lost sales; in reality, it ushers in a majorbusiness opportunity for merchants who are ready and willing to provide alternative paymentoptions that appeal to millions of potential buyers.
More payment options equal more sales 
When consumers buy products face-to-face, they have a choice of multiple payment optionsincluding credit cards, debit cards, cash, and checks. These options are a result of the need tomeet customers’ diverse requirements. However, in the online world the same options do notexist for consumers. Credit cards dominate online payments and are generally the only paymentmethod accepted by most merchants. In order to experience continued sales growth, merchantsneed to expand their payment options to address varied consumer preferences. Effective anduser-friendly alternative payment options are a much-needed addition to the world of onlineshopping.The addition of new payment options results in fewer dropouts at checkout
2
and more completedsales. The right payment options generate incremental sales without increasing fraud, charge-backs, or overhead costs.Several alternative payment options address these issues. One of the newest options, developedin response to the growing use of online banking, enables consumers to pay for Internetpurchases directly and securely from their online banking accounts. Today, MODASolutions is theonly company that offers this solution. Using eBillme™, shoppers have the option of paying forweb-based purchases through the convenience, comfort and trust of their own banks.
Online banking unlocks access to new consumer groups 
Banks have spent billions of dollars building secure and reliable online banking systems thatinclude services such as bill payment. 84 million customers already bank online—a numberforecasted to reach 110 million by 2010. Expanding this existing infrastructure to support onlinepurchases represents a major opportunity for merchants, as online banking becomes one of themost significant payment alternatives to credit cards.
1
 
Gartner and Jupiter Research, Online Bill Viewing and Payment Forecast, 2003-2008
2
 
CyberSource. The Insider’s Guide to eCommerce Payment, 2004
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