Electronic Bill Presentment and Payment—More Requirement than Option

17 Apr Electronic Bill Presentment and Payment—More Requirement than Option

The internet and the rise of mobile technology have transformed our daily lives and played an integral role in changing how we do business and what customers expect. An excellent example of this is how consumers want to receive, view, and pay their bills. Technology has brought numerous benefits to managing finances, making it possible to do so from anywhere at any time. To keep up with these evolving payment trends, businesses must embrace adopting the electronic delivery of information. One avenue is offering electronic bill presentment and payment (EBPP) to deliver regular statements to customers via mobile devices and the internet.

Along with customer expectations, the United States Postal Service requirements keep changing and growing in complexity, providing another reason to consider moving to electronic delivery of your bills, statements, notices, and invoices. Electronic notices through secure email offers a way to lower costs and give customers a choice in how they receive statements and pay bills. A study by the Association for Financial Professionals (AFP) found that in 2022, just 33% of B2B payments in the United States and Canada were made by check. Barely a decade ago, in 2013, the figure was 50%, while as far back as 2004 it was 81%.

Key advantages
As companies are actively shifting their payment methods from checks to digital alternatives, they gain the immediate benefits of eliminating printing and postage costs. Still, they also can reap the advantages of:

• Improved cash flow. The top benefitof EBPP cited by 52% of U.S. and Canadian respondents in the AFP study was settlement speed. Many prefer EBPP because it makes “instant” electronic bill payment possible.
• Improved customer relations and retention.Expanding channels to include electronic delivery can boost customer satisfaction by allowing them to view and pay using their preferred method.
• Protection against fraud. Security features must be carefully considered when evaluating electronic billing solutions, including data confidentiality, biller authentication, and non-repudiation of statements and bills which contain PII or PHI.

The availability of electronic, multichannel communications technology is now considered a requirement rather than an option. Customers are spending more and more time online; hence, paper is not always the channel of choice. Convenience is obviously a major advantage of offering electronic presentment of customer communications along with secure payment options, but so is promoting a sense that you know and understand your customers’ preferences and are working to meet their expectations. That may be one of the most beneficial things you can do as a company.