United States Postal Service

The Postal Service faces advancements in communications technologies which are expected to eliminate mail. It is estimated that electronic systems may eventually divert from 20 to 50 percent of first-class mail. However, the remaining mail, whatever the volume, will need to be handled in the most economical manner. Since electronic technology has the potential for reducing mail handling costs and offering better service, the Postal Service has little choice but to continue efforts to use this technology. The greatest impact of electronic technology will involve transaction mail such as orders, invoices, bills, and payments which account for about 70 percent of all first class mail. Electronic funds transfer is expected to reduce the use of the mails for financial transactions. Since the late 1960's, the Service has been conducting feasibility studies which have concluded that electronic message systems could be both technically and economically feasible. Currently, there are two basic efforts directed toward using electronic message systems, research and development of an electronic message system and evaluation and testing of existing electronic equipment for postal application. Prospects for widespread use of electronic message systems are unknown but involve several factors: the volume of mail that could be diverted to electronic funds transfer, the amount of competition that can be expected from the private sector, and the economic benefits to the Service.