Size of the U.S. household bill payments market in 2021: $ 2.91 trillion spent by U.S. consumers annually on recurring bills

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SEATTLE – (COMMERCIAL THREAD) – doxo, the innovative web and mobile bill payment service, today released its 2021 US Bill Payments Market Size and Split Report, revealing Americans spend 2.91 trillion dollars per year – one-fifth (20%) of all US consumer spending – on top 10 bill payment categories. In this report, a statistical analysis of actual household payments was used to assess market and category across more than 37,000 US ZIP codes and 45 service types. The report found that the average U.S. household spends $ 22,668 per year on bills and breaks down the size of the household spending market for each bill category, the percentage of households that pay each bill, and the average monthly and annual costs of paying. invoices by state.

“The doxoINSIGHTS 2021 US Invoice Market Size and Category Breakdown report leverages our proprietary data set to help make the US invoice economy transparent and understandable to all,” said Steve Shivers, co-founder and CEO of doxo. “In addition to our app that makes it easier to stay on top of invoices to help improve financial health, these reports support doxo’s ongoing mission to empower our consumer, biller and financial service provider users to make better decisions. . ”

Doxo’s proprietary dataset of consumer bill payment activity generates the most accurate category and regional statistics in the industry

Doxo’s bill payment service enables all-in-one bill payments to more than 75,000 suppliers across the country in 45 different service categories. By incorporating tens of millions of bill payments across more than 37,000 U.S. ZIP codes and all U.S. revenue and regional demographic segments, the 2021 U.S. Bill Payments Market Size and Split Report is a representation true and direct of what Americans are actually paying on their bills. Updated for 2021, this proprietary dataset provides the bottom-up market sizing basis of doxoINSIGHTS for the 10 most common invoices and makes category size and average spend transparent at national, state and local levels. Unlike other industry data sources – which often mix recurring household spending with spending paid or withheld by the employer (e.g. health insurance, taxes) and retail and discretionary spending (e.g. credit card balances) – doxo’s single nationwide bill payment data specifically quantifies the actual consumer’s share of total recurring bill spending and household penetration rate for each category.

The report results include breakdowns by category of service, household market penetration for each type of service, and average household spending per month by state.

$ 2.91 trillion in total household bills spent in these categories:

The average U.S. household spends $ 22,668 per year on most common bills

According to the US Census Bureau, the actual median household income in the United States is $ 65,712. That number, combined with Doxo’s estimate that the average American household spends $ 22,668 per year on everyday bills, suggests that more than a third of Americans’ annual wages are spent on basic expenses – a significant portion of income. , whatever the measure.

As housing costs exceed monthly expenses, the report finds that the average household pays more per month for cell phone and cable / internet bills than health or life insurance, which is often covered by their employer or automatically deducted from paychecks. . The average monthly amount of each invoice paid in each category is:

  • $ 1,279 mortgage

  • $ 1,062 Rent

  • $ 412 car loan

  • $ 316 Utilities

  • $ 186 auto insurance

  • $ 116 Cable and Internet

  • $ 113 health insurance

  • $ 103 Cell phone

  • $ 89 life insurance

  • $ 87 Alarm and security

Note that the market size of each category and the total spending per household per year takes into account not only the average amount of each bill payment, but also the actual percentage of households paying each category. For example, consumers who pay rent usually do not also pay a mortgage. See the report for details of these categories.

Comparison data shows the ranking of invoices by state

  • Mortgage payments are highest in New Jersey, California, Hawaii, New York and Massachusetts, respectively. Many of the same states also top the list for rental costs: Hawaii, California, Maryland, New Jersey and Massachusetts. West Virginia has the distinction of being the most affordable state for mortgage and rent costs.
  • Automatic loan payments are highest in Wyoming and Alaska at $ 559 and $ 485 / month, respectively. Residents of Pennsylvania and Maryland enjoy some of the lowest prices at $ 338 and $ 333 / month, respectively.
    • While car loan bills in Maryland may be cheaper, residents of the state pay the most, along with Wyoming and Alaska, for Car insurance, while New Mexico and Idaho pay the least.

  • Utilities expenses are highest in Hawaii ($ 540 / month) and New Jersey ($ 436 / month), while South Dakota ($ 239 / month) and Mississippi ($ 233 / month) are the most affordable .
  • Cable and Internet bills make the biggest hole in the pockets of Alaskan residents, followed by a handful of northeastern states including New Hampshire, Vermont, New York, New Jersey, Maine, Connecticut and Massachusetts.
  • Mobile phone bills are cheapest in Delaware ($ 71 / month), but more than double in Alaska ($ 149 / month).
  • Health insurance spending, when considering only personal consumer spending (excluding employer payments), is lowest in terms of Georgia ($ 68 / month) and the highest in Minnesota ($ 209 per month).
  • Life insurance expenses are highest in Wyoming ($ 164 / month) and lowest in New Mexico ($ 63 per month).
  • Alarm & Security is the cheapest for residents of Alaska ($ 43 / month) while Kansas ($ 137 / month) and Montana ($ 123 / month) pay the most for protection.

In addition to the $ 22,668 per year that the average household spends on the most common bills, consumers also face additional hidden costs associated with paying bills. Identity theft and payment account fraud, overdue and overdraft fees, and negative impacts on credit ultimately add up to an additional $ 577 each year per household, or $ 74 billion per year . DoxoINSIGHTS ‘Hidden Costs of Paying Bills report exposed these charges, as staying on top of bills is the primary determinant of consumers’ financial health.

For more information or to view the full report, visit www.doxo.com/insights/.

About doxoINSIGHTS

doxoINSIGHTS provides direct insight into the financial health and spending of households by leveraging consumer surveys and doxo’s unique aggregate bill payment data set, including the actual activity of paying bills to suppliers of household services confirmed across the country. Doxo data brings together the largest set of data available to analyze actual household bill payment activity, from more than 4 million paying consumers in more than 90% of U.S. zip codes. Doxo’s payment network covers more than 75,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This one-of-a-kind statistical base powers doxoINSIGHTS reports – revealing key trends in household financial health and bill payment behavior.

About Doxo

doxo provides easy and secure all-in-one bill payment to any biller, with any payment method, on any device. A doxoPLUS subscription adds free bank payments and five essential financial protections that improve household financial health. Through these services, doxo currently serves more than four million paying users who can make payments to more than 75,000 local and national businesses, making doxo the largest bill paying directory in the country. Network billers get paid directly, quickly and free of charge, and consumers are completely independent as to when and how they pay their bills. doxo has grown its user base by over 70% over the past year and is expanding its team to further accelerate growth and change the bill payment landscape to focus on the customer. Doxo investors include MDV, Sigma Partners and Bezos Expeditions. doxo is based in Seattle, WA. For more information, visit www.doxo.com.

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