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New NACHA Study

Americans Who Stop Paper Bills and Statements Are More Satisfied Consumers

NACHA's PayItGreen® Survey 2010 Reveals Less Clutter, Reduced Waste, and Easy Access to Bills and Statements Make Happier Customers

SEATTLE, April 26, 2010 – There is a direct correlation between consumer satisfaction and paperless billing behaviors, according to a new study from PayItGreen. Unveiled today at NACHA's PAYMENTS Conference, the national PayItGreen Survey 2010 reveals that consumers who switch to online-only statements and bill pay report greater satisfaction with their bank and/or credit union. Compared to paperless consumers, those who receive statements by mail are 10 percent less satisfied or "neutral" about their financial institutions (see Graph 1).

"This research makes an important connection between consumers and environmentally friendly behavior – as paperless billing adoption grows, consumer satisfaction and loyalty will follow suit," said Eric Leiserson, a founding member of NACHA's PayItGreen coalition. "The PayItGreen survey also tells us that less clutter, easy access and reduced waste are all motivating consumers to leave paper behind – a significant observation for the entire payments industry."

The survey shows adoption trends vary among age groups. Consumers ages 55 to 64 lag farthest behind in paper statement adoption at 20 percent and twice as many 25- to 34- year olds have gone paperless (see Graph 2). In addition, 25 to 34 year-old consumers are embracing a paperless future, with 42 percent responding that banks should automatically shut off paper statements once they start reviewing and paying bills online.

"The Clearing House is focused on helping financial institutions develop solutions that meet the evolving preferences of their customers," said Mark Tizzard, product specialist, new product development at The Clearing House. "The findings of this latest PayItGreen survey confirm the growing consumer interest in paperless billing alternatives that deliver the benefits of ease, convenience and environmental soundness."

"At U.S. Bank, we're committed to reducing our environmental impact while helping our customers do the same, but this is a timely reminder that more and more people will go paperless if it is easy and simple," said Lisa O'Brien, director of environmental affairs at U.S. Bank, a founding member of the PayItGreen Alliance. "The research also sends a message to consumers – switching to online billing and statements is more than an environmental decision, it provides a variety of benefits that will likely make you a more satisfied customer."

According to PayItGreen, if 20 percent of American households switched from paper to electronic bills, statements, and payments, nearly 2 million trees, 151 million pounds of paper, and more than 100 million gallons of gas would be saved every year. PayItGreen's Financial Paper Footprint calculator allows consumers to see the environmental impact of their paper bills, checks, and statements.

"PNC strives to integrate our day-to-day business practices with environmental responsibility. Green business practices have helped us to lower costs and to increase efficiency and productivity, and we work every day to bring those advantages to our customers by helping them transition their receivables and payables activities from paper to electronic," said Robert Edwards, executive vice president of treasury management at PNC.

Key Findings in Green Survey 2010:

• Consumers are less satisfied with their financial institutions when they receive statements by mail. Only 11 percent of consumers who are paperless for all their financial statements are dissatisfied or neutral with their financial institutions, compared to 21 percent of those who receive everything by mail
• Minimalism is the key driver for going paperless. The top reasons respondents said they receive paperless statements were because they're easy to access online (62 percent), to "reduce clutter" (50 percent) and to eliminate paper waste (49 percent) (see Graph 3)
• 6 out of 10 respondents were open or neutral to automatic shut-off of paper statements once they start paying and/or reviewing bills online (see Graph 4)
• Mobile phone (49 percent), student loan (49 percent) and Internet (44 percent) bills were among those most commonly received electronically only (see Graph 5)
• Utility companies lag in electronic billing adoption – electricity (32 percent), gas (32 percent), and water (24 percent) were among the least common bills consumers receive online only (see Graph 5).

The report is based on data collected by Javelin Strategy & Research. The online survey polled 5,000 U.S. adults. Eighty-five percent of respondents were employed and fifteen percent of the sample was unemployed. The analysis focuses on the 4293 employed adults, weighted to be nationally representative of employment status (e.g. full-time, part-time, self-employed, etc.), gender, race, ethnicity and income.

About PayItGreen
PayItGreen is a coalition led by NACHA — The Electronic Payments Association — whose members are committed to educating consumers and businesses about the positive environmental impacts of choosing electronic payments, bills, and statements over paper. PayItGreen members are small- to medium-sized businesses, large corporations, credit unions, banks of all sizes, regional payment associations, processors and other financial industry service providers and stakeholders. To learn how your company can benefit from membership, please visit www.payitgreen.org/business.

About NACHA—The Electronic Payments Association
NACHA supports the growth of the ACH Network by managing its development, administration, and governance. The ACH Network facilitates global commerce by serving as a safe, efficient, ubiquitous, and high-quality electronic payment system. NACHA represents nearly 11,000 financial institutions through 18 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholder organizations to encourage the efficient utilization of the ACH Network and develop new ways to use the Network to benefit its diverse set of participants. To learn more, visit www.nacha.org, www.electronicpayments.org, and www.payitgreen.org.