U.S. Households Pay $1,268 a Year in Hidden Costs Associated With Paying Bills, up 29% Year over Year
A new report released today by doxo found that hidden costs associated with paying bills amount to an additional $167 billion annually, averaging $1,268 per household. Each year U.S. households spend over $3.87 trillion on household bills, and $3.22 trillion on the 10 most common recurring ones. Staying on top of these bills is the single largest determinant for consumer financial health. doxo's Hidden Costs of Bill Pay Report - 2023 uncovers the concerns American consumers have about identity fraud, late fees, overdraft fees, and detrimental credit impacts and quantifies the expense each causes for the typical U.S. household.
The figures in this year's report are 29% higher than they were for last year's Hidden Costs of Bill Pay Report, which showed that the hidden costs of bill pay had an overall market impact of $128 billion, and an average annual cost per household of $986. Mostly moderate increases contributed to this spike, with credit impacts seeing the biggest increase, which is not surprising given rising rates across the board. Last year credit fees cost consumers an average of $658, as compared to $945 in this year's report.
Breaking Down the $1,268 Consumers Pay in Hidden Costs Associated with Paying Household Bills:
Analysis of consumer survey and statistical data shows the average U.S. household incurs $1,268 per year in additional hidden costs associated with bill payment, comprised of:
High Consumer Concern about Stolen Payment Information and Credit Impacts
Consumers are increasingly concerned about the variety of ways they get stuck with expenses when managing and paying their bills. doxo's survey of active household bill payers shows:
doxoPLUS Tackles the Hidden Costs of Bill Pay
doxo's secure, all-in-one bill pay service facilitates secure payment to any biller, with any payment method, on any device - delivering payments from millions of paying users to tens of thousands of billers across the country. doxo users can upgrade to doxoPLUS and receive five key Bill Pay Protections that directly address the hidden costs of bill pay: Private Pay™ Protection, Identity Theft Protection, Overdraft Protection, Credit Score Protection, and Late Fee Protection. Collectively, these protections reduce the hassle and anxieties of paying bills and improve household financial health.
Read the full Hidden Costs of Bill Pay Report 2023 here.
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo's unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 8 million paying consumers across over 97% of U.S. zip codes. doxo's payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports - uncovering key trends for household financial health and bill payment behavior.
doxo delivers innovation that transforms the bill pay experience for consumers, billers and financial technology providers. For over 8M consumers, doxo's all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo's network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 5,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $4T of US Household spend. To learn more about America's leading bill pay network, visit doxo.com.