Postmaster General: Online Bill Pay Eroding Postal Revenues

“Fortunately, people like to receive hard copy statements and other business correspondence through the mail, but unfortunately for us, they are electing to pay bills online,” Donohoe said in opening remarks before the Senate Homeland Security and Governmental Affairs Committee.
“The result is that we have seen sharp declines in first-class mail sent by residential customers, and this is a trend that we think will continue to erode postal revenues,” he said.

Donohoe called the uptick in online bill pay “a primary cause of the Postal Service’s financial challenges.”

The Postal Service announced this week that it will end Saturday mail delivery in August.

It recorded a $15.9 billion loss last year and defaulted on $11.1 billion in payments to the U.S. Treasury, and it is losing $25 million a day, the postmaster testified.

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