WhatBills – Bill Payment Reminder Service

Whatbills_logoLaunched this month, Whatbills <whatbills.com> is a simple $1.95/mo Web-based service for tracking your bills and sending yourself email reminders to pay. Although the functionality is limited, iWhatbills_googlesearch_quickenonlinet's the kind of service banks should be offering. We found out about the service through its Google advertisement on the phrase "quicken online" (see screenshot right).

The interface is similar to Billeo (NB Feb. 14), but with far fewer functions. Users can do three things:

  1. Enter bill name, category, due date and amount
  2. Send themselves email reminders to pay
  3. Mark bills as paid

The entire program today is shown on the screenshot below:


Business model
At a cost of $1.95/mo, which is about what you'd pay each year for Intuit's Quicken Basic, the company doesn't seem to have a compelling selling proposition. It would make more sense to offer a limited free version, perhaps earning a few pennies per month per user by displaying advertising on the user interface. Then upgrade users to a premium plan with more features.

Whatbills_homeBut neither of those business models will yield much more than low-six figures per year. A more likely scenario for the San Diego-based company is a sale to Microsoft, Google, or a major financial institution for a few hundred thousand, a price that would be less expensive for a large company than developing the application internally.

Update: A similar Web-based service, BudgetTracker <budgettracker.com> founded in 2003, has a free version that uses Google AdSense revenue to keep it running. For $19.99/yr users can upgrade to an ad-free version that also provides unlimited data storage and several additional features such as bank-data import. See the price plans here.


Banking Bill Payment Guarantees

Checkfree_logoWe believe a strong bill payment guarantee is crucial, not only to the credibility of your epayments program, but by implication, to your entire online banking offering. CheckFree has offered its logo up for years, but your customers want to know what YOU will do for them; most would prefer to know nothing about CheckFree.

And your guarantee needs to be visible to both online banking users and those just thinking about it. One of the best ways to increase visibility is by creating a "bill-pay guarantee" icon that users can click through to learn more about it.

Citi_billpay_logo_1 One of the better examples is at Citibank (inset) on its logon page. When you click on the logo, a small popup appears (click on the thumbnail below):


This guarantee has great copy, you can tell the marketing department was heavily involved. Rather than just reiterating the rather droll performance guarantee,* the bank also highlights several benefits:

  • No hidden charges, in other words, unlike "free checking," bill pay really is free
  • 24/7 service with "fast response"

*Citi’s bill-pay guarantee states that payments will be processed within 24-hours and delivered to payees according to the schedule, or the bank will pay for any fees incurred.


Bill Payment Toolbar from Billeo

Billeo_click_to_enlarge Just when you thought the banks were gaining an upper hand in the electronic bill payment battle, up pops a newcomer with a fresh approach. Take a moment to check out Billeo. An odd name, but so is iPod, and it seems to be working pretty well.

We haven’t used it yet, so these comments are preliminary, but "on paper" this company and its approach appear to be winners. (One caveat: the business model is unknown, and the privacy policy is a bit ambiguous when it comes to the issue of adware. We’ll keep you posted on what we find out.)

Billeo is a free toolbar-resident application that plays "virtual assistant," enabling more convenient and controlled direct bill payment at vendor sites. The toolbar also serves as an e-wallet simplifying online point-of-sale transactions.

The toolbar contains several unique features, one of which is extremely impressive, the ability to save screen captures of transaction receipts. The application also includes payment reminders, a payment register, and a personal "bill payment" email address for users.

There are several familiar names associated with the startup. Nancy Langer, a former exec at Metavante, is the president. The advisory board includes Eric Dunn, formerly with Intuit, Shankar Srinivasan co-founder of Cyberbills, and Scott Loftesness of Glenbrook Partners.

We’ll dissect the new service in Part 2 of our upcoming Electronic Payments Report in Online Banking Report.


Editor’s Note: Billeo was named "OBR Best of the Web" in the second part of its series on E-Payments (OBR 119) published in June 2005. 

Pricing Online Bill Payment

We just sent our latest report, “Pricing: The Fee vs. Free Controversy” to the printer. It should arrive in your mail in a week to 10 days.
In the report we look at the widespread practice of offering of online bill payment free of charge. You can read the report for our detailed conclusions, but suffice it to say, we are not wild about this trend. Online banking and bill payment provides significant value. And without a tangible revenue stream, it’s difficult to make the appropriate investments in the channel. We think bank customers will actually be better off in the long run if they shoulder at least a portion of the extra costs of a robust online banking service.
Free bill payment is particularly vexing. Here’s a service that runs circles around the paper equivalent. Users can save time, save money (postage, late fees, and check printing fees), can improve bill tracking and budgeting, and make their financial life easier. And, if the electronic payment doesn’t post at the biller on time, the bank and/or processor will go to bat for them to resolve the problem. Try doing that with a paper check that’s “lost in the mail.”
So why do banks insist on providing this beneficial and costly service free of charge? They are doing it for the “relationship” value. No doubt users love getting something for nothing. And we won’t dispute the correlation between bill pay users and higher household profitability. But so what. You can correlate higher profits with any service designed for a well-heeled audience.
The bigger question is this: Is free bill payment, costing $50 to $100 per customer per year, the best way to gain more loans and deposits from your best customers? It may be, but there may also be less expensive ways to achieve similar results, such as lifetime transaction archives or more account security options.
It’s a tough call.
If you’d like to learn more about the future of online bill payment, check out the Online Banking & Bill Pay Forecast: Current, future and historical usage: 1994 to 2016 from our sister publication, The Online Banking Report.

Strategic Alternatives to Across-the-Board FREE

Eliminating bill payment fees is the simplest way to make customers happy.
However, there may be less expensive alternatives that position you better
for the long term.


First, let’s look at how consumers choose a bill payment service
provider. It’s not so much about the price. What they want is to have their
bills paid in a timely manner with the least amount of effort and maximum
amount of control. Other factors play a role as well:

  • overall complexity of household finances
  • technological sophistication and outlook
  • financial experience and behavior
  • risk tolerance


Table 9, right, lists 43 attributes related to the consumer’s bill
payment purchase decision.


So, rather than offering it fee-free, perhaps you could improve your
value-proposition in other ways to provide a similar adoption lift without
losing the fee income altogether.  Following are five alternative


1. Conditional (on another purchase)

·      Free if you do add something that improves revenues, such as
adding an account

·      Free if you do something that lowers costs such as switch to

·      Free with minimum balance levels

·      Free as part of an overall relationship account


2. Crippled (reduced features and benefits)

·      Free with usage limited to electronic merchants only

·      Free with reduced or pay-per-incident customer service

·      Free with reduced functionality

·      Free with reduced usage


*Two top-50 banks are using this approach,
First Tennessee
National Commerce Financial


Table 9

Factors Used by Consumers When Selecting a Bill Payment Provider

  • security
  • customer service availability
  • quality of customer service
  • timeliness of payments
  • turnaround time of the payment
  • payment scheduling requirements
  • guarantees in the event of late/lost payments
  • usability
  • tracking of payments in process
  • stop-payment capabilities
  • merchant list
  • process to add a merchant
  • ability to review the billing statement
  • confirmation numbers
  • confirmation messages
  • ability to schedule recurring payments
  • how long it takes to complete a bill payment session
  • how easy is to make a mistake
  • session logs
  • payment limits
  • look and feel
  • integration with other online banking activities
  • built-in credit to handle shortfalls
  • ability to pay from multiple accounts
  • archives of payment transactions
  • reporting
  • automation options
  • positive word of mouth
  • customer service wait times
  • online FAQs
  • online instant messaging support
  • telephone support
  • learning curve
  • SMS/IM confirmations
  • ability to schedule via telephone
  • integrated email to payees
  • budgeting/planning tools
  • search capabilities for prior transactions
  • expedited transactions
  • control
  • privacy
  • trust
  • perceived record keeping improvements

Source: Online Banking Report, 8/04


3. Substitute other lower-cost FREE services

·      Free paper check and statement archives

·      Free account aggregation with online bill manager (see

·      Free 24/7 customer service

·      Free interbank transfers

·      Free credit report information

·      Free account alerts

·      Free companion air fare or other non-banking incentive



4. Provide overall relationship incentives

·      Higher rates or lower fees on checking or other deposit accounts

·      Lower rates and/or higher lines of credit

·      Higher service levels and better guarantees


5. FREE as part of plain-vanilla, reduced-benefit online banking

·      Actively upsell advanced fee-based packages with numerous
additional features and benefits (see Table 10 below)

·      Limit the life of the plain-vanilla package; enact forced
conversion after several years into fee-based product


Table 10

Bill Payment Product Differentiation


Source: Online Banking Report, 8/04


The Bottom Line on Subsidizing Bill Payment

The real question: Does subsidizing bill payment improve profits more than
spending that money in other ways, e.g., better service, better branches, better
website, and so on? Only individual financial institutions can answer the
question, factoring all the alternative uses of capital. However, we caution
against blindly jumping on the fee-less bandwagon. Think of free bill pay as
just one more strategic choice, not a mandate from the marketplace.


The simplest approach is a breakeven analysis
(see Table 8, right). In other words, will my current bill pay base, and
the new customers attracted to a free offering, bring in enough extra business
to cover the $50 to $75 annual subsidy?1


On the deposit side, the case is pretty weak: to offset a $60 annual subsidy,
you’d need incremental balances of $3,000 at a 2% spread or $6,000 at a 1%
spread. On the loan side, the numbers work better. At a 4% spread, you only need
an extra $1,500 to break even. But is subsidized bill payment really the most
cost effective way to increase loan balances? If so, you should probably make a
more direct tie-in, such as waving bill pay fees for taking a new credit line (see
“Bill Pay Credit Lines,” OBR 81


Mini Business Case

A more precise measure of the balance levels needed to cover bill payment fee
waivers looks at the total cost of bill pay and the number of incremental
customers attracted. For this calculation, use the following assumptions:

·      $90 annual cost for each bill pay customer, including internal
servicing costs and outsourced processing

·      50% of bill pay customers would pay $5/mo

·      50% are incremental, drawn by the free offer

·      10,000 total users





So the total incremental cost is:

·      New users: 5,000 x $90 = $450,000

·      Forgone fees from existing users:
5,000 x $60 = $300,000

·      Total incremental costs: $750,000


Table 8

Breakeven Incremental Balances



Incremental Balances Needed to Breakeven



Per Bill Pay Customer


$75 million



$50 million



$38 million



$30 million



$25 million



$19 million



$15 million



$13 million



$11 million



Source: Online Banking Report, 8/04



Even with a modest base of 5,000 bill pay customers currently paying $5/mo
for the service, you may need to attract $25 million or more in incremental
balances to make back the $750,000 in incremental costs. Even if you think
that’s possible, is that the best return on the $750,000 “investment.” Would
that money provide a better return if spent on service upgrades, marketing, or
employee education?


When deciding whether you can bring in enough offsetting balances, keep in
mind the demographic trend is moving in the wrong direction. Bank of America may
have been able to improve overall profit 30% after costs; however, that was
against an affluent, early adopter crowd. Going forward into the mass market,
will the same profit lift be seen in the 2005 to 2008 period? We doubt it. The
newest wave of users is less affluent overall, so it will be harder for them to
bring in the balances needed to offset the $50 to $100 subsidy.

1 Assumes total out-of-pocket and internal costs of bill payment
are $6 to 8/mo.

Four Bill Payment Pricing Myths


We have no choice: to stay competitive, bill payment must
be free.

There is some truth to this. Twenty-two of the fifty largest U.S. banks now
offer bill payment free of charge to their entire online banking base. And the
big banks, especially Bank of America, are making a lot of noise about their
free bill payment services. And it does strike a chord with consumers who
naturally would prefer it be free, and tend to believe it should
be free, because of the incorrect assumption that it lowers the bank’s
processing costs.

However, online users are not naïve. They know there is a downside to free
services. It could be less privacy, inferior product quality, or distracting


We’ll make up the lost fees
with improved retention.

There is no doubt that bill payment usage is correlated with higher
retention. But that’s the case with nearly every add-on service from savings
accounts, to credit cards, to safe deposit boxes, or Saturday branch hours.
Assuming customers like it, every account added increases retention.

It is true that electronic bill payment creates higher exit barriers (aka
“switching costs” or “customer lockin”) than a simple savings account. However,
it’s entirely possible that within a few years someone will invent a wizard that
automatically moves a user’s bill payment setup, merchant info, and history from
one bank to another.









We’ll make up the lost fees with
 higher balances.

Again, we’ve seen the research and it points to a strong correlation
between bill payment use and customer profitability. As Bank of America and
others have demonstrated, the “extra” profits from the bill pay group vs. the
control more than make up for the extra costs. In Bank of America’s case, they
showed an overall profit lift of 30%, after netting out the 10% increase in cost
to service the account due to the bill pay subsidy .

This is the best argument for free bill pay, and it may even have been true in
the 2000 to 2003 period analyzed by BofA. Early adopter bill pay users were a
profitable group; they may have had a tendency to add accounts at the bank that
was providing them the latest and greatest services, including bill pay.
Complicating the analysis, however, is the fact that the banks offering free
bill pay, Citi and BofA, for example, also tended to have the best overall
online banking services. Was it the free bill pay or the killer website that
drove the incremental balance growth? Bank America made a billion dollar bet
that it was the bill pay.1


Eventually payment processing
costs will decline.

Clearly, end-to-end electronic processing has lower transaction costs than
paper. However, electronic bill payment comes with an implicit customer service
component absent from paper checks. When a paper check fails to reach the payee,
no one expects the bank to track down the problem and make it right.

With electronic payments, the banks, and its processor, are required to
troubleshoot and fix problems, even when the error was outside their control. As
quality and volume increase, these costs will decline. But it will be difficult,
if not impossible, for electronic transactions to have lower marginal costs if
customer service expenses are factored in.

1 Bank of America’s stake $400 million stake in CheckFree gave it
extra incentive to promote free bill payment.


Bill Payment Pricing Research Results

In the U.S. market, the industry standard pricing model has been free online
banking access combined with fee-based bill payment. However, during the
past three years, the fees for bill payment have gradually gone away to the
point where the most major U.S. banks advertise free bill payment, though it
may not apply to all account types or balance levels.


In July, we surveyed the top 50 U.S. banks and found only two that still
charged a monthly fee to all bill payment customers. Nearly half, 22 of 50,
offered bill payment free to everyone. Three banks did not offer bill
payment and the remaining 23 offered it free for certain accounts and/or
balance levels. In total, 45 of the 47 (96%) largest banks with bill payment
offered a free option . For those charging a fee, the average listed price
is $5.63/mo.


Last fall, TowerGroup found 33 of the 50 (66%) largest U.S. banks
providing bill payment free of charge to all or part of their customer base.
Furthermore, Tower found that bill pay penetration increased from 22% of
online banking customers prior to going free, to 38% after the change. This
70% lift was significantly more than what would have been expected without
the price change.


History of Free Bill Payment

Although BofA is largely credited with starting the free bill pay
movement, Citibank was actually the first to go free. In a major branding
campaign in the summer of 1997, the bank hit the streets of Manhattan
touting its no-fee electronic banking message (the fee-free policy also
applied to ATM transactions and other electronic banking transactions).



But until Bank of America’s high-profile move, most major banks held to
a $5 to $7 monthly charge, which not coincidentally covered their monthly
bill to CheckFree. Citibank handled payment processing in-house, which may
have contributed to their willingness to offer it fee-free.


Fees began to crumble in the fall of 2002 when BofA launched a
multi-million dollar television advertising campaign promoting free bill
payment. The campaign proved so popular with viewers that it continues to
this day. At the time, BofA said it was their most-remembered campaign of
all time. In the months and years since, most major U.S. banks have followed
suit. The most recent major to go free was U.S. bank earlier this year (see
Table 1, below).


One notable holdout is Wells Fargo, which last year said that 40%
of its base still paid a monthly fee.1 Assuming 2 million bill
pay accounts, with 750,000 paying monthly fees of $6.95, Wells Fargo is
bringing in more than $5 million per month in bill payment fees. While it
may lose a few customers to its pricing strategy, the $60 mil/yr can be
reinvested into better services, more marketing, or shareholder dividends.

1 American Banker, Wednesday, June 11, 2003

Table 1

Free Bill Pay Timeline






Part of high-profile strategy to make
all electronic services free-of-charge


Free-for-life promotion netted more
than 100,000 signups
Charter One


Became free for all

May 2002

Became free for all
Nat City

Sep 2002

Became free for all
Fifth Third

Feb 2003

Became free for all

Sep 2003

Became free for all
Bank One

Aug 2003

Free for all but basic accounts
US Bank

Jan 2004

Web bill pay free for all consumers, MS
Money/Quicken still $4.95/mo

May 2004

Also offer free to small biz

Sep 2003

Previously $4.95/mo

Source: Online Banking Report, 7/04



Table 2
Summary of Consumer Bill Pay Fees at Top 50 U.S. Banks


Source: Online Banking Report, 7/04

(1)       Free of monthly fees; in a minority of cases, fees apply for
excess usage and/or account inactivity

(2)       Excludes Comerica, whose pricing is not disclosed, and MBNA
which charges by the transaction

(3)       Average fixed monthly fee, excludes transaction fees for excess




Table 3
Consumer Bill Pay Fees at US Top-10 Banks



Source: Online Banking Report, 7/04

1In June 2003, Wells Fargo
reported that 40% of its customers received it free-of-charge.

2Wachovia is the other top-10 holdout; it has said that 70% of
customers get it free-of-charge.





Table 4
Consumer and Small Business Bill Pay Fees at Top-50 US Banks
ranked by deposit size, 12/31/03








Source: Online Banking Report, 7/04



Bank of America landing page from Google ad

The Bank of America Story

Thanks to an unusual openness, motivated by the strategic importance1
of its free bill payment policy, Bank of America’s internal research
results have been widely circulated in print. To recap, in a 2.5 year study
of bill pay users compared to a control group of similar customers, the bank
found a 30% profit lift (see Table 5 right). Despite conventional wisdom,
little of it came from increased retention: the main driver was increased


Normally, we don’t pay much attention to studies correlating bill payment
with higher profits. It’s a function of the early adopter demographics and
will gradually diminish as bill payment becomes a mainstream service.
However, Bank of America’s results deserve a second look because they used a
control group of similar non-bill payment customers to compare profit lift.


We have serious doubts that you will be able to recreate these results
within your own customer base. Here’s why:

  • What really caused the profit lift? Was it the bill payment in
    isolation, or was it the entire online banking experience at BofA’s
    award-winning site.

·      Did households in the control group already have one foot out the
door? Perhaps the control group didn’t adopt bill payment at Bank of America
because they were already in the process of moving their balances to another
financial institution. If so, the control group was predestined to have
lower profits no matter what factor was evaluated.

·      Was the control group really that similar? Although, they may have
been in the same demographic segment, it seems to us that a household using
bill pay in 2001 was fundamentally different in their financial behavior
than one that didn’t use bill pay.

·      Would the same profit lift be seen with any new product geared to
affluent customers, e.g., a new diamond credit card? In other words, it may
not be that bill pay causes balances to grow; it’s merely that those
with growing balances tend to sign up for new upscale services regardless of
what they are.

·      Finally, even if you take the results at face value, does BofA’s
experience with early adopters during the past three years have any
correlation with what you might expect with mainstream users during 2005 to


1 Besides the free publicity, the bank has an ulterior motive
for promoting free bill payment across the entire industry. The bank
took a 16% interest (10 million shares) in CheckFree in Q2 2000; the
deal was valued at $400 million at the time.


Table 5

Bank of America Results

index of profitability with 100 = to
profits prior to the household using electronic bill payment

Initial customer profitability 100  
 + deepened relationships (+27) 127  
 + increased retention (+3) 130  
 + reduction in servicing cost (+1) 131
 – cost of bill pay service (-9) 122  

Source: Bank of America, increase in customer profitability during a
31-month period ending in 2002, results of an analysis of 300,000
customers comparing profits from bill payment users vs. the profits of a
control group of similar households not using bill pay




Results from Online Resources

Online Resources, a major bill payment processor with more than 500
financial institution clients, found that bill pay penetration was 40% for free
vs. 28% for those with monthly fees of $5 or less
(see Table 6 below).


Table 6

Online Resources results
Aug 2003



Monthly Fee







% of ORCC client’s charging this fee1





Online banking adoption2





    % Bill pay conversion2





Bill pay adoption2






Source: Online Resources, 7/04

(1) January 2004 data

(2) June 2004 data



That’s a 30% lift in conversion of online banking users to bill pay; and an
even more impressive 120% lift in total bill payment adoption across the bank’s
checking account base. However, it’s been achieved at a hefty cost. Not only are
the banks giving up the $5 to $6 monthly free from their existing bill pay
customers, they’re paying several dollars per month for a whole new group of


It’s also difficult to ascertain how much of the increase in online banking
adoption was accounted for by the free bill pay offer. Since the first to offer
free bill pay tended to be more aggressive in their overall marketing of online
banking, some of the lift is from better overall marketing, regardless of the





Results from Compete Inc.

Ecommerce researcher Compete Inc., which has a financial services
practice run by Stephen Franco, a high-profile analyst at US Bancorp Piper
Jaffray during the height of the bank technology boom. He found that banks
offering free bill payment had a higher share of their customer’s electronic
bill payments. At major banks that charge for bill pay, 18% of their customers
used biller-direct payments. In comparison, those offering it free-of-charge had
a third fewer customers (13%) using biller direct services (see Table 7 below).


Table 7

Bank Bill Pay vs. Biller Direct
Feb 2004




Penetration of:



Bill pay base

Online banking base

Bank online

28.7 mil



Any pay online

11.3 mil



   Bank only

5.7 mil



   Billers only

4.6 mil




1.0 mil




Source: Compete, Inc. 5/04


LowerMyBills landing page from Google ad (8/25/04)

MBNA’s Bill Pay Choice

The credit card giant offers online payment of outside
bills even if the merchant payee does NOT accept credit cards.



MBNA ($142 billion, 40 million cardholders) offers something we’d
been expecting for years, a bill payment program that draws payments from a
credit card. The company even posts the transactions as cash equivalents,
offering the same 15- to 45-day float afforded regular card purchases.
However, bill payments do not earn points in MBNA’s reward programs.
Furthermore, payees are limited to those that can be paid electronically by
CheckFree, although that’s now covers 70% of the processor’s volume.

Consumer Benefits


  •       Added float, as one message board poster said, “why worry
    whether you get a few days float (from your bank), when MBNA provides a
    whole month”
  •       Convenience of tracking more expenditures through the
    card-management system.
  •       Ability to repay over time.
  •       Option of charging bills to an MBNA card or debiting from any
    checking account.
  •       Free, so long as the cardholder initiates at least two payments
    per month from their card account (see fee schedule opposite)


  •       No real drawbacks, except for the confusing price schedule.
    Consumer advocates might argue that it encourages cardholders to take on
    more debt, but they could already do that by paying bills with convenience

Financial Institution Business Case

We’ve long maintained that loan generation is the most important
institutional benefit of online bill payment because. Why? If given the
opportunity, users will likely charge several bills per year to an
integrated credit line .

While you will lose money on convenience users who repay the charges each
month, revolving balances should more than compensate. For example, in our
back-of-the-envelope calculations, we estimate a total net profit of $60 per
year per user of credit card bill-pay, or $600,000 annually across a
10,000-user customer base. 

The Most Confusing Fee Schedule in the World:
MBNA’s Bill Pay Choice may be among the most flexible online, but
its fee schedule is utterly confusing. Perhaps the company should consider
charging a nominal flat fee that’s waived if charging 2 or more bills.


Of course, any new credit card program must be monitored closely for abuse,
both outright fraud, by setting up a phony electronic merchant, and less
sinister gaming of the system where a user becomes an electronic merchant on
CheckFree’s system and pays himself each month to earn the float. However, since
no reward points are awarded, there is far less incentive to play games.

Card issuers could limit their exposure by setting a maximum monthly amount
of bill payments, especially for new cardholders.

How it Works

MBNA cardholders must first register for online access at MBNA’s NetAccess
 After that, they register for Bill Pay Choice. Users can pay bills either by
charging to their MBNA card or debiting any U.S. checking account. MBNA does not
offer its own checking account; however, payments can be drawn from MBNA’s money
market account.

The service is free unless the user pays bills only from their checking
account, in which case the fee is $0.75 per transaction. Users may qualify for
unlimited free checking-account bill payments provided they charge at least two
bills to their card each month.


Table 13
Mini Business Case: Card-based bill payment

monthly benefit, assuming 6 payments totaling $1000





Direct Costs  


Cost of float 30 days at 2%


Cost of transactions 6/mo to CheckFree


Cost of service/mo internal


  Total cost/mo  


Direct Revenues  


Increased outstanding balances $167 x 12 months
x 5% spread*


Fees from DDA trans  


  Total revenue/mo  


Net profit/mo  






Extra interchange from increased charge
1% x $300/yr


Increased retention 2% increase x $150/yr


Total per user
   per 10,000 users



Source: Online Banking Report estimates, +/- 33%, 2/04
Revenue assumptions: 1 out of every 10 bills will be revolved (10%); revolving
balances will be repaid in equal installments over 12 months (6 months average
life); interest rate spread = 5% (net of charge-offs)