Electronic Bill Presentment and Payment

Electronic bill presentment and payment (EBPP) is the term for when a company sends or presents bills to customers electronically. Customers then pay these bills electronically using the internet. Electronic bill presentment is also referred to as e-billing, e-invoicing, eInvoice, electronic invoicing or ePayables. Some industries which commonly use electronic bill presentment and payment are telecommunications, financial services and utility companies.

There are two common models for electronic bill presentment. One is the direct model. In his model the billing company delivers the bill to the customer through their own website or a third party website. The other model is known as the consolidator or bank aggregator model of electronic bill presentment. In the consolidator model, bills from multiple companies are delivered to one website. These are then aggregated and presented to the customer for electronic payment.

There are many benefits of electronic bill presentment and payment. This is a more cost effective method of billing for companies. Electronic billing also makes it easier for companies to provide customer service and may improve cash flow. Also, customers may be more loyal as they may be able to receive bills in a customized or more accessible state through electronic bill presentment and payment.

Another benefit is that customers can make timely payments more efficiently. However, not all customers may feel comfortable making electronic payments or receiving bills electronically. One of the other challenges which affects electronic bill presentment and payment overall is the lack of regulation or standardization throughout. Of course security is also an issue for all parties involved with electronic bill presentment and payment.