Aite Group reveals that by 2010, over 1.3 billion walk-in bill payments will be performed in the United States, including cell phone top-up, up from about 1.0 billion in 2005. Walk-in bill payment processors will generate US$1.9 billion in revenues by 2010, up from US$1.1 billion in 2006.

Boston, MA, March 13, 2006 – In a new report, Walk-in Bill Payments: The Prepaid Storm, Aite Group reviews the market opportunity and competitive trends in walk-in bill payment processing, including convenient bill payments, expedited bill payments, and prepaid mobile phone top-up. The research highlights how prepaid mobile phone top-up processing is contributing in reshaping the competitive landscape.

"Strong growth in prepaid mobile phone top-up volumes will contribute in reshaping the walk-in bill payment by turning top-up processors into a major distribution force. We expect further consolidation between mobile top-up processors and postpaid bill payment providers," comments Gwenn Bézard, a research director with Aite Group and author of the report.

While the report predicts strong growth for cell phone top-up at the point-of-sale, it also remarks that walk-in locations' share of total prepaid mobile top-up volumes will fall from 92% in 2005 down to 79% by 2010. Virtual top-up (when the reload is made directly from the handset using bankcards or ACH) will grow its market share as an alternative to the walk-in channel from 10% in 2006 to 21% by 2010.

The research also notes that while prepaid cell phone top-up is a boon for the merchant acquiring business, in particular Independent Sales Organizations (ISOs), it could create new challenges to the industry over time. "Although the prospects are still remote today, in-store and virtual top-up methods have the potential to lead wireless phone carriers or related players into merchant acquiring, threatening banks' and card networks' market positions," adds Bézard.

Twenty-two vendors are mentioned in this report, including: American Express, American Payment Systems (CheckFree), ACE Cash Express, Alliance Data Systems, Blackstone Calling Cards, Coinstar, Debisys (Emida), Discover, E-Time System, Fidelity Express, Global Express, PaySpot (Euronet), Incomm, IPP of America, MasterCard, MoneyGram, Pay-O-Matic, Precash, Pre-Solutions, Western Union (First Data), Visa U.S.A., and ViaOne Technologies.

To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com

Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. It was founded by leading industry experts in Banking and Securities & Investments. Aite Group brings together a team of business strategy, technology and regulatory experts to deliver comprehensive, timely, and actionable advice to financial institutions and technology vendors. It seeks to become a true partner, advisor, and catalyst by exchanging ideas and challenging basic assumptions to ensure that our clients always stay one step ahead of the competition.