US Household Bill Payment Market Size in 2022: US Consumers Spend $3.12 Trillion Annually on Recurring Household Bills | Business
SEATTLE, Wash.–(BUSINESS WIRE)–February 3, 2022–
doxo, the innovative web and mobile bill payment service, today released its report on the size and category of the US bill payment market in 2022, revealing that of the $4.61 trillion that Americans spend on household bills annually, $3.12 trillion across 10 major bill payment categories, comprising nearly a quarter of all consumer spending in the United States 1. In this report, a Statistical analysis of actual household payments – across 97% of US zip codes and 45 service types – was used to size the market and categories. The report found that the average US household spends $24,032 per year on bills and breaks down the market size of household spending for each bill category, the percentage of households that pay each bill, and the average monthly and annual payment costs. invoices by State.
“doxoINSIGHTS’ 2022 US Bill Payments Market Size and Category Breakdown Report leverages our proprietary dataset to help make the US bill payments economy transparent and understandable for everyone, especially in our current economic environment,” said Jim Kreyenhagen, vice president of marketing and consumer services at doxo. . “Along with our app making it simple to stay on top of bills 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 regional and category statistics in the industry:
doxo’s bill payment service provides all-in-one bill payment to over 100,000 vendors across the country in 45 different service categories. By integrating tens of millions of bill payments across 97% of US ZIP Codes and across all US regional income and demographic segments, the US Bill Payments Market Size & Category report by 2022 directly represents what Americans actually pay on their bills.
Updated to represent consumer spending figures and patterns in 2022, this proprietary dataset provides the basis for doxoINSIGHTS’ bottom-up market sizing for the 10 most common bills and makes category sizes and average spend transparent. at the national, state and local levels. Unlike other industry data sources – which often mix recurring household spending with employer-paid or withheld spending (e.g. health insurance, taxes) and retail and discretionary spending (e.g. credit card balances) – doxo’s nationwide single household bill payment data specifically quantifies the consumer’s actual share of total recurring spending and the household penetration rate for each category.
The report’s findings include breakdowns by service category, household market penetration for each type of service, and average household spending per month by state.
$3.12 trillion in total for paying household bills spent in these categories:
The average US household spends $24,032 a year on the most common bills
According to the US Census Bureau, the actual median household income in the United States is $67,5212. This figure, combined with Doxo’s estimate that the average US household spends $24,032 a year on routine bills, suggests that more than a third of Americans’ annual salary is spent on basic expenses – a significant portion of income by any measure.
While housing continues to be by far the biggest expense for American households, the report finds that the average household pays more out of pocket per month for car loans, car insurance and even cell phone bills than essential costs such as health or life. insurance, which are often covered by their employer or automatically deducted from the salary. The average monthly amount of each invoice paid in each category is:
Note that each category’s market size and 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 generally do not also pay a mortgage. See the full report for details of these categories.
Comparison data shows how invoices are classified by status
- Mortgage payouts are highest in New Jersey, California, Hawaii, Massachusetts, and New York, respectively. Many of the same states also top the list for to rent costs: Hawaii, California, Maryland, New York and New Jersey. West Virginia has the distinction of being the most affordable state for mortgages ($817 on average per month) and rent ($695 on average per month).
- Automatic loan payments are highest in Wyoming ($511/month) and Alaska ($501/month). Residents of West Virginia ($385/month) and Pennsylvania ($377/month) get one of the lowest prices.
- While Pennsylvania auto loan bills may be the cheapest, state residents pay more than average Car insurance bills, the 13th highest in the 50 states, at $211/month. Wyoming and North Dakota, both at $307/month, pay the most for Car insurancewhile Minnesota ($152/month) and Alabama ($151/month) pay the lowest monthly average.
- Utilities spending (defined in the Doxo report as electricity, gas, water and sewage, waste and recycling) is highest in Hawaii ($550/month) and Maine ($452/month), while Wyoming ($248 $/month) and Mississippi ($243/month) are the most affordable.
- Cable and Internet bills make the biggest bumps in the pockets of residents of New Hampshire ($140/month) and Maine ($134/month), and the smallest bumps in residents of Utah ($97/month) and from South Dakota ($96/month).
- Mobile phone bills are most expensive in Alaska ($174/month), more than double the lowest state in the Union, North Dakota ($88/month)
- Health insurance spending, looking only at out-of-pocket consumer spending (excluding employer payments), is highest in North Dakota ($259/month) and Hawaii ($250/month ) and lowest in Alaska ($74/month)
- Life insurance spending is highest in Rhode Island ($153/month), more than three times that of the lowest state, Alaska ($45/month)
- Alarm & Security bills are most expensive in Kansas ($149/month) and Hawaii ($144/month) and residents of Utah ($63/month) and Nebraska ($58/month) pay the least for the protection.
In addition to $24,032 per year that the average household spends on the most common bills, consumers also face additional hidden costs of paying bills, averaging $925 per year per U.S. household (up substantially from compared to USD 577 on average the previous year) per household. The Hidden Cost of Paying Bills report from doxoINSIGHTS revealed these fees, concluding that staying on top of bills to avoid late fees and other overages is the primary determinant of consumers’ financial health.
For more information or to view the full report, visit www.doxo.com/insights/.
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique global bill payment dataset, including actual bill payment activity to confirmed household service providers across the country. Doxo’s data brings together the largest data set available to analyze actual household bill payment activity, from over six (6) million paying consumers in over 97% of U.S. ZIP codes. The doxo payment network covers more than 100,000 providers in 45 different service categories and allows payments using bank accounts, credit cards or debit cards. This unique and broad statistical base powers doxoINSIGHTS reports – revealing key trends in household financial health and bill-paying behavior.
doxo provides simple 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 over six (6) million users who can make payments to over 100,000 local and national businesses, making doxo the largest bill payment directory in the nation. Billers on the network are paid directly, quickly and free of charge – and consumers have complete bill-paying independence of when and how they pay their bills. Doxo investors include MDV, Sigma Partners and Bezos Expeditions. doxo is based in Seattle, WA. For more information, visit www.doxo.com.
2 United States Census Bureau, Income and Poverty in the United States
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CONTACT: Dotted Line Communications for doxo
KEYWORD: WASHINGTON UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES OTHER CONSUMER MOBILE/WIRELESS CONSUMER TECHNOLOGY INTERNET FINANCE
Copyright BusinessWire 2022.
PUBLISHED: 02/03/2022 06:00 AM/DISC: 02/03/2022 06:02 AM
Copyright BusinessWire 2022.