An article by Chris Stefanadis of the New York Federal Reserve Bank on why adoption of EBPP has been slow.
Although checks are still the primary instrument for bill payment in the United States, EBPP providers appear confident that they will become important players in the financial services sector. Their optimism stems from the significant efficiencies that the new technology can potentially provide: better communication links between the biller and the customer, lower processing costs, and greater convenience. Nevertheless, the spread of EBPP has been very slow, falling far short of initial projections. One key reason is the lack of coordination among potential participants.