MarketsandMarkets: With Only 7.3 Million Users by 2014, Merchant Remote Deposit Capture (RDC) is Creating Opportunities for its Providers

DALLAS, July 15, 2010 - Remote Deposit Capture (RDC) is an easy three-step process of scanning,
verifying, and depositing a check. It has emerged as one of the best
solutions to help merchants reduce the time and cost associated with the
manual check deposit process. RDC has become a necessity because paper checks
still form one of the most popular methods of payment, currently accounting
for around 75% of initial B2B payments. The solution's benefits have induced
almost every bank to incorporate it in order to acquire new customers as well
as to retain existing ones.

Browse in-depth TOC on A New Look At Merchant Remote Deposit Capture
(RDC) - Getting Merchants to Use the Service
www.marketsandmarkets.com/Market-Reports/merchant-remote-deposit-
capture-180.html

(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)

RDC growth from 2004 to 2008 has been an impressive 70% per year. The
initial adoption was among the banks and financial institutions as branch
deposit capture. This was followed by the adoption of the bank's commercial
base wherein the major targeted segment was big businesses where banks held
their core deposit and asset base.

As banks turned their focus to merchants, they targeted small and medium
size businesses with annual revenue of $1 million to $25 million. While RDC
adoption by this market segment lagged behind expectations at an estimated 2%
in 2007, this segment of the market is beginning to see value in the solution
and adoption is on the upswing, currently around 30%. The big unknown, the
micro business segments with annual revenue of $25,000 to $1 million,
represents 70% of all printed checks, and promises to be an attractive market
if banks can learn how to crack it.

RDC solutions are currently sold through two channels. In the direct
sales channel, banks directly sell the solution to merchants, whereas in the
third-party channel, solution providers such as Profitstars, Fiserv,
Netdeposit act as interface between merchants and banks.

The currently low adoption rate of RDC has created an opportunity gap in
the market. The opportunity gap also arises from the inefficient channel of
marketing RDC, the failure to deploy scanners to the end-users, and the lack
of consumer training and awareness.

As most banks have realized that one size does not fit all, coming up
with solution for businesses or merchants with low volume checks or low
deposit amounts can create a niche segment for RDC adoption. Thus, innovative
product offerings by banks will play a major role in the development of the
RDC market. Moreover, the integration of industry participants, i.e., banks,
scanner manufacturers, and application service providers, will help all
market players provide more effective and cost-saving solutions.

The objective of the report is to provide the most effective channel and
message, the target market, and provide an insight into the decision making
process. Our report, A New Look at Merchant Remote Deposit Capture, Getting
Merchants to Use the Service, will help Financial Institutions gain a better
understanding of what they can do now to increase RDC penetration.

    Key Findings

    - Among the top 180 commercial banks as per asset size in 2009,
      78% offer merchant RDC. All banks with asset size of more than $1
      trillion provide merchant capture whereas only 44% of the banks with an
      asset size between $5 billion and $10 billion offer RDC.
    - Merchant RDC adoption among businesses has not been high as users
      were typically non-bankers and feared fraud and operational risks
      associated with the use of the solution.
    - Merchant RDC integrated with the account receivables facility
      solution reduces the work of statement reconciliation, resulting in
      overall workflow reduction by 30%-40%.
    - In 2007, only 25,000 U.S. merchants of an estimated 24 million
      were using RDC. Our research suggests that the number of RDC users is
      expected to reach around 7.3 million by 2014.
    - Of the 24 million businesses in the U.S. in 2007, around 16-17
      million are potential RDC users.
    - Creating awareness is one of the key playing fields in RDC. Banks
      are formulating various strategies to increase awareness of the product
      by bundling it with other products and by educating merchants through
      various campaigns and awareness programs.
    - Too many names for RDC, such as 'electronic check deposit' and
      'merchant capture' are confusing merchants; it is better to use just
      one name to market the service in the industry.
    - Most of the solutions offered by banks have a facility to deposit
      checks in one account; however businesses require products with
      multiple account deposit facilities. Offering RDC with multiple account
      deposit facility will help increase the adoption of RDC.
    - Banks and ISOs can offer products as per the varying needs of
      different businesses, such as different scanners with varying features,
      speed and number of checks scanned per day for businesses with
      different check volumes.
    - The research has suggested a new form of channel for merchant RDC
      i.e. Hybrid channel which is an enhanced version of bank centric
      channel.

    Scope of the report

    - Strategy Formulation - Market definition, industry overview,
      market size, key drivers, and issues related to the adoption of the
      remote deposit capture among merchants

    - Business Models - Live business case studies on go-to-market
      strategies, and on challenges during RDC deployment

    - Vendor Analysis - Vendor profiling, vendor benchmarking and analysis

About MarketsandMarkets

MarketsandMarkets (M&M) is a global market research and consulting
company based in the U.S. We publish strategic advisory reports and serve as
a business intelligence partner to Fortune 500 companies across the world.
MarketsandMarkets also provides multi-client reports, company profiles,
databases, and custom research services.

M&M Banking and Financial Services practice recognizes the challenges
that financial institutions face bringing the right products to market. Our
reports and consulting practice provide a unique perspective allowing the
financial institution to see and experience the best way to achieve their
product goals. Through a mix of case studies, primary research, and business
modeling we provide a 360degrees view to identify how you can create,
capture, and keep the value of your product and out think the competition.

    Contact:
    Ms. Sunita
    7557 Rambler road,
    Suite 727, Dallas, TX 75231
    Tel: +1-888-989-8004
    Email: sales@marketsandmarkets.com

    www.marketsandmarkets.com

Contact: Ms. Sunita, 7557 Rambler road, Suite 727, Dallas, TX 75231, Tel: +1-888-989-8004,
Email: sales at marketsandmarkets.com