Banks launch online bill payment service

High-street banks Lloyds TSB and HSBC will launch an electronic bill viewing and payment service for their internet banking customers in the second quarter of this year.

OneVu, a joint venture between payments company Voca and IT vendor CheckFree that provides banks with a consolidated bill viewing and payment system, was first announced in 2004, and has been in development ever since.

The system allows customers to use their usual online banking site to access account details from a variety of organisations, including utility companies and mobile phone providers, as well as making associated payments.

Martin Kearsley, chief executive of OneVu, says that when the service goes live, Lloyds TSB and HSBC customers will be able to pay some 42 million bills issued by companies such as Telewest, Nectar and Northumbrian Water.

‘We will start with a small base of brands and expand from there,’ he said.
‘The customer gets the convenience of one login and the biller gets convenience of authenticated users, while banks gain from providing extra services to their customers,’ said Kearsley.

The company will subsequently release quarterly updates, with three to five new firms added in each period. The service will also allow businesses to reduce the amount of paper used to send statements to customers.

Jason Bacon, head of new business and customer development for internet at Lloyds TSB, says the service will help the bank enhance customer relations.

‘Different bill sites all present bills online, but these all need different passwords,’ he said.

‘Now, if you are logged onto your internet banking, you can type in your bill details and reference number once, then view your latest bills through your own bank thereafter.

‘You can also view details and make payments and so on.’

Bacon expects other banks to follow suit as the service gains in popularity.