DALLAS, Texas – December 17, 2004 – A Federal Reserve study on payment methods released last week found that electronic payments exceeded paper checks for the first time in 2003. An update to a study originally conducted in 2000, the data also revealed that debit card transactions are growing at an annual rate of 23.5%, well outpacing credit card growth of 6.7%. These trends have been readily apparent to the 100-plus clients of BillMatrix Corporation, a provider of outsourced telephone- and Internet-based payment services, where ATM/debit transactions along with a wide variety of other electronic payment methods have been a standard offering for over a decade.

Electronic transactions included in the study were credit cards, debit cards and automated clearing house (ACH) transactions such as on-demand electronic checks and direct debit. Overall, 44.5 billion electronic transactions were executed in 2003 while the number of paper checks paid totaled only 36.7 billion. In the 2000 study, paper checks exceeded the number of electronic transactions by 11.3 billion, so this new study documents a substantial change in the behavior of the American consumer.

“We’ve always known that a certain segment of consumers were looking for the convenience of electronic payments and that recurring billers were interested in capturing the associated cost savings,” said Scott Walker, President and CEO of BillMatrix. “The change that this study validates is the increasing expectation of the mass market consumer that these payment methods are readily available for all of their bills.”

The study reported that credit card payments exceeded debit card transactions in 2003 by 3.4 billion, but are rapidly approaching parity as the electronic funds networks offer on-demand, PIN-less bill payment transactions for mortgages, automobile loans, insurance premiums, utility and cable/satellite bills. BillMatrix clients are able to virtually eliminate returned items using ATM/debit transactions, as the service validates that funds are available in the account for the payment in real-time and assigns those funds to the client.

About BillMatrix Corporation
BillMatrix Corporation provides outsourced payment services for the nation’s largest companies using the latest automated consumer interface technologies. Founded in 1994 and headquartered in Dallas, BillMatrix works with corporations in the telecommunications, utility, insurance, mortgage and financial services industries to replace expensive, paper-based methods of remittance with a set of convenient, labor- and cost-saving electronic transactions. Consumers are able to make payments in a private and secure manner, via the Internet and telephone, using a variety of credit card, ATM/debit card, and electronic check payment options. BillMatrix maintains a fully staffed customer service organization to support both its clients and their consumers with any payment issues. For more information, visit www.BillMatrix.com or call (800) 596-0221.