Why do banks try to promote Bill Pay?

To add to the stickiness mentioned by Serge Milman I'll add that retail banks have changed their business models from one of service to that of a profit center. read more

Banks believe that Bill Pay is a 'Sticky' Product. This means that they believe you are less likely to switch Banks if you use Bill Pay. The other reason Bill Pay is valuable to Banks is that it gives them a view into what products or services you have at other institutions. read more

If anything I would think that banks have to pay money to mail the payments that don't post electronically and they would also lose revenue from checks. I've seen banks give free checking accounts and even prize drawings for the people who use bill pay. read more

Most banks do it now to keep up with the competition. Almost every bank does it now, so they have to do it to attract new business and keep existing customers. Also, the more you rely on the bank and use them to pay bills, the more they learn about you over time and can use that data in overall marketing plans. read more