SOURCE: 3i Infotech

3i Infotech

May 12, 2011 10:10 ET

3i Infotech's Director of Postal Services Testifies Before Congress on Future of Paper Mail

Leading Payment Processing Executive Discusses Business Mail Trends, Highlights the Impact of USPS Decisions on Billers and Consumer Payments

WASHINGTON, DC--(Marketwire - May 12, 2011) - How fast American consumers and businesses accelerate their shift from receiving paper bills and paying them with checks to receiving and paying bills online will depend more on what steps the U.S. Postal Service takes in the next few years than on any new breakthrough technologies, according to testimony given today before a Congressional hearing titled "Where Have All the Letters Gone? -- The Mailing Industry and Its Future."

That's the view of Todd Haycock, Director, Postal Services for 3i Infotech North America, one of the nation's largest payment processors and a company that handles more than half a billion pieces of mail each year. He provided testimony today before the Committee on Oversight and Government Reform Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy.

"The volume of paper bills and payments mailed through the U.S. Postal Service will continue to decline in the coming years in favor of electronic alternatives," Haycock said. "The rate of that decline is dependent on what actions the U.S. Postal Service takes over the next couple of years. The ball is rolling and reversing that trend will be difficult. However, if the U.S. Postal Services focuses on what the mailers in the industry need, the value mail can provide, and decreasing the complexity and costs of the mailing process, businesses will divert their capital and resources to more pressing projects instead of trying to move away from physical mail in an effort to cut costs."

Haycock outlined the following market trends affecting the payment processing industry:

  • Proliferation of payment options: The shift to online payments has been partly driven by the expansion of payment options to consumers, including secure email, e-mailboxes tied to physical addresses, and mobile presentment and payment.

  • Industry consolidation: As consumers and businesses make more payments online, less remittance mail moves through the U.S. Postal Service and payment processing providers resulting in considerable consolidation among remittance mail services providers and facilities.

  • Increased cost and complexity of paper mail: With postal rates increasing and large mailers required to make expensive investments and changes to meet new U.S. Postal Service requirements, such as the Full Service Intelligent Mail® barcode, businesses are motivated to adopt online payment methods.

A full transcript of Mr. Haycock's testimony is available at: http://tinyurl.com/5w8krka

About 3i Infotech
3i Infotech (www.3i-infotech.com) is a global information technology and business process outsourcing (BPO) company which provides technology solutions to customers in more than 50 countries across five continents. The company provides IT services and BPO to markets such as banking, financial services, insurance, government, manufacturing, retail, telecom, education, healthcare and utilities. 3i Infotech is a member of the FinTech 100 and the WorldBlu List of Most Democratic Workplaces.

Contact Information

  • Media Contacts:
    Josh Wendroff
    Director of Marketing, 3i Infotech, North America
    213-216-1808
    Email Contact

    Robin Bectel
    New Venture Communications for 3i Infotech, North America
    571-312-1448
    Email Contact