Selection criteria for a mode of bill payment: empirical investigation among Finnish bank customers

Banks and other financial institutions have nowadays a keen interest in their customers’ bank and mode of bill payment selection criteria, and in factors underlying this decision making. Recent developments in the financial services industry, for example increasing competition, co‐operation, and convergence mean that new strategies to attract and maintain customers are becoming of key importance for managers. Attempting to reveal the preferences of today’s customers, a survey type of study was undertaken to increase the understanding of consumers’ selection criteria for a mode of payment in Finland. Altogether 1,167 usable responses were used for the data analysis. The results of the study suggest that primary factors affecting the choice of a mode of bill payment are speed, security and trustworthiness, easy‐to‐use, and price of the payment. Some consumers appreciated short distance to a branch. Conversely, examples from friends and relatives, social contacts with the banking personnel, and bank’s name had a relatively low impact on selection of bill payment mode.