Indians adopting Online billing and payment in big numbers


online billing in India Online bill payment is not new to India. Infact, I remember ICICI Bank offering online bill paying facility way back in 2000-2001. However, not many used the facility back then. It is only in last 2-3 years that online payments have caught up in India, given the rapid growth () of Internet.

Living in US for 5 years, there was hardly an instance when I actually made a payment via cheque or cash – be it utility bills, newspaper bills, insurance premiums or even a co-pay to the doctor. 99% of the payment were done online.

India now seems to be rapidly catching up to this phenomenon. Not only are individuals more inclined on paying bills online, even the companies presenting the bills are pushing netizens by giving more importance to e-billing.

Just to give you an example – I had to pay my property taxes for 2007-2008 and had been postponing it for past 2 months given the hassle of going to the local Pune municipal corporation (PMC) office, waiting in line and handing the cheque. While looking at the bill yesterday, I noticed that PMC has started giving the facility of paying the taxes online. Not only did they allow online payments, one could view the complete property tax bill online. Within next 5 minutes, the payment had been done !

I was pleasantly surprised that even local city government offices are taking such proactive measures to push online payments in India.

In a recent study carried out by Assocham, – “e-Billing – a better option for convenience”, the findings show that e-billing business has grown by over 200% in last year and is expected to triple by 2009.

Here are some of the key finding from the report:

  • Mumbai had taken the lead in e-billing since 28% of its population availed of e-billing transactions followed by 22% of Delhi, 12.5% of Chennai, 12% of Bangalore, and 5.2% of Hyderabad. In Pune, online payments are affected by about 5% of its total population and between 6-7% of Kolkata, 2.4% of Ahemdabad, 2.2% of Lucknow and about 2% of Indore
  • 73% of online payers accesses the internet from home, while 79% from office; 36% from cyber cafes, 7% from friends’ place and 14% from mobile phone.
  • 75% of cell phone possessor choose online medium for payment of their bills; 73% owners of landline telephones also opt for this medium for bills payment; 70% pay credit card bills online while 60% pay electricity bills online; 45% pay insurance premium online; 42% pay internet access bills with this medium while 29% pay for their magazine subscriptions online.
  • 54% cited convenience as the most important reason for their patronizing e-billing; 35% cited time saving as they could pay bills without having to stand in line at a counter or even a bill payment centre; on an average, customers saved upto 80 hours a year and paying bills online reduced paperwork and was an easier way to manage bills.
  • 46% online bill payers are between the age of 26-35, followed by 22% in the age 18-25 group; 20% are in the 36-45 age group, 11% in the 40-60 bracket and 2% in the 61+ age bracket.
  • 83% online bill payers are male and 17% female; 43% are unmarried, 14% married with no kids and 43% are married with kids.
  • By occupation, of online bill payers 3% are students while 6% are supervisors/officers, 64% are executives (including junior, middle and senior levels). 11% are professionals or self employed, 4% are businessmen/ industrialists, 1% are shop owners and 2% are housewives
  • source

Are there any readers who have not yet used the online payment facility?

  1. Steve Mathews says

    Hey All

    I have been using the services of for quite sometime now and they are coming up with the new Invoicera with features like time-tracking, expense tracking, import function, and much more. Check out their blog at for updates


  2. Shreeya says

    Good to see such a new offering (Itz Cash Card). The use of which can be really optimised for Online ticketing, booking, paying bills and shopping online…I have been personally using this Cash Card. This has made all my online transactions easier. Great Great product!!

  3. Techi2.0 says

    The numbers are increasing steadily, but I want to know about the payment gateway of pre-paid cash cards like ItzCash Card. Please help me on the information!

  4. anshuman says

    Hey that’s worth reading. The phenomena of online payment have truly helped in making the lives of the people easier. The online payment options available today to the common man is not just limited to the basic banking instruments like the debit and the credit cards. Now one can make online payments by using pre-paid cash cards like ItzCash Card. These cards have joined hands with thousands of business verticals which have enabled the non-bankable population of the country to enjoy online payments.

  5. Ravi Kumar says

    Hey Vicky,

    You can visit any of the ItzCash Card outlets in Mumbai which are known as ICW’s or else you can order them and they will deliver it to your doorstep within three (3) working days. For the use, all you have to do is scratch the card, enter the account number and password and use the amount of money from the card to make your desired payment. For more you can visit

  6. Vicky says

    Hi Ravi Kumar,

    Thanks for the info. But i would like to know how do u use a cash card and where do you get this?

  7. Ravi Kumar says

    Amazing facts! Great post! Truly the e-transaction is catching up fast with the population of the country. The figures in the sector are rising fast with the percentage of population involved in the online transaction increasing at a rapid pace as well. The online transaction in the country has gone ahead of the general shopping. Presently we care able to pay our utility bills online without involving the banking instruments like the credit and debit cards. One can make payment of utility bills of MCGM and of Municipal Corporation of Delhi through ItzCash. The induction of prepaid cash cards like ItzCash cards have definitely helped those with an inhibition of using their plastic money online. These prepaid cash cards are absolutely safe and can be used in various business verticals.

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