Electronic Banking Becoming More Popular

May 3, 2004 (PLANSPONSOR.com) - Electronic banking including bill paying continues to get ever more popular, a trade group reported.

A news release from the Electronic Payments Association said that more than 60% of consumers have their salaries and other payments direct deposited into a bank account, up over 4 % from 2003. Meanwhile, more than half of Americans are using electronic bill payments.

In 2003, the number of Direct Deposits increased to more than 4 billion transactions ranging from payroll, expense and travel reimbursements, to pensions, Social Security and mutual fund distributions. At the same time, consumers made nearly 3 billion Direct Payments.

According to the announcement, direct deposit programs can be money savers. Depending on the size and infrastructure of a company, the cost reductions can be anywhere from $1,000 a month to more than $15,000 a month. The U.S. Treasury Department saves $0.62 per payment when benefit recipients choose to use direct deposit.