Electronic bill payment a reduction in processing costs minimizing paperwork and an increase in customer loyalty. In a 2003 study, the banks said that "customers who pay online show more loyalty and are more receptive to other offers". Electronic bill payment Electronic bill payment is a feature of online, mobile and telephone banking, similar in its effect to a giro, allowing a customer of a financial institution to transfer money from their transaction or credit card account to a creditor or vendor such as a public utility, department store or an individual to be credited against a specific account. These payments are typically
Payment for order flow larger than they became after 2001 when the tick size in U.S. markets fell to one cent. Larry Harris reports that in 1997, 24% of E-Trade's transaction revenue came from payment for order flow, but that by the second quarter of 2001 such payments accounted for only 15% of transaction revenue. The benign view is that in competitive markets, the payments that brokers receive for selling uninformed order flow reduce commissions for retail investors so that the retail investors are no worse off. Payment for order flow may also allow smaller trading venues to compete more effectively with the NYSE.