Issue 3

For the first time, the qualitative portion of the 2007 Usage & Attitudes Study directed several questions to the 18-25 year old demographic to better understand these first time bill payers.

It quickly became clear from this initial glance that there is an opportunity for BPAY to communicate specific messages to this group around bill payment choices, and by doing so, potentially expand its number of users.

More recent proprietary research, completed in August and conducted by TNS, further revealed critical information about this demographic. Specific questions around bill payment and BPAY were directed to a group of 16-25 year olds.

Awareness of BPAY as a bill payment method, although lower than the general public, was higher than expected with 76 per cent of this age group familiar with the brand. Other frequently identified options included paying in person at Australia Post (69%) and direct debit (54%).

Once young people started paying bills, the number they are responsible for soon adds up. Of those who are paying bills (88%), they pay or contribute to an average of 6.3 bills, with the older half of the age range citing even more bills. Not surprisingly, mobile phone ranked as the most common payment, followed by Internet connection, car registration, electricity, telephone, car/general insurance and rent.

The Internet is used for a range of activities by this group, with almost three quarters (74%) banking online, 71 per cent using it for social networking, and two thirds (67%) shopping online.

Peer influence (10%) did not score highly in how young people decide to pay bills. Instead the options listed on the back of a bill (56%) and parents (47%) had the greatest impact.

BPAY was cited as the main method of bill payment (47%). In person at Australia Post (17%) and direct debit (8%) trailed significantly further behind.

Using these insights as a guide into this youth area, BPAY is currently developing several tactical initiatives.

The first project is a collaboration with My Diary, a school diary that is distributed to approximately 60,000 secondary and tertiary students nationally. The 2009 edition will include a full-page BPAY 101 tutorial ? basically how to sign up for Internet Banking and start using the BPAY service.

This fundamental and straight forward information will also form the basis of a youth brochure, which will be distributed in several ways. It will debut at O Week when BPAY partners with CBA to communicate the BPAY message to more than 30,000 university students.

Additionally, BPAY has identified a youth program called SOAR! that is part of School's Out Youth Services. SOAR! prepares young people between the ages of 16-21 for issues and situations in 'real life', including managing finances. BPAY plans on making its youth brochure available to this organisation.

In an effort to continually refine our communications efforts with this increasingly important market, the 2008 Usage and Attitude Study, which gets underway later in the year, will expand its demographic to include people 16 years and up.

If any BPAY biller is interested in BPAY's youth research or would like to collaborate on a youth initiative, please contact BPAY's Marketing department at marketing@bpay.com.au.