Businesses use Electronic Bill Payment and Presentment (EBPP) to send bills electronically and make it easy for customers to pay their bills online. It makes paying easier for customers by making it easier for them to see and pay their bills. Biller-Direct and Consolidated EBPP methods are the two most popular ways to use EBPP.
What Is Electronic Bill Payment and Presentment (EBPP)?
It is a system that is applied by the businesses to deliver the bills to the customers, perceived and paid by electric means. EBPP is a framework for the online billing and payment system to be deployed by the businesses. On the other hand, bill presentation just provides bills to customers for their check, and it is in electronic form.
To deliver invoices to the customers, companies use EBPP with the help of the technology to deliver bills by mail. With these bills, customers also get notified for the submission of payments electronically.
Types of Electronic Bill Payment & Presentment
There are 2 types of EBPP systems that were given below:
Biller-Direct EBPP
In this type of business, companies connect with customers with a direct approach. The company or service provider provides an electronic bill to the customer by some electric means. The customer got notified through the mail for the bill and also got notified about how to sign into their account on the website of the company so as to see the bills, analyze them, and pay online.
Jio provides bill payment for postpaid connections, services related to broadband, and JioFiber subscriptions without intermediary via its own website and MyJio app.
Consolidated EBPP
External service providers operate the consolidated type of EBPP to combine financial transactions. External parties generally refer to the bank. This type is also known as bank aggregators or bank consolidators (EBPP). The consolidator service obtains information from multiple companies, distributes it to customers, collects payments, and then delivers the funds to the relevant companies.
In terms of payments, it also provides the benefit of a single portal for multiple accounts. For example, you can use your bank account to pay for your cellphone bills, credit card bills, etc.
When the company distributes its presentations through a consolidator, it can offer varying levels of information to its customers. Some presentations provide a detailed overview of the transactions, while others only provide basic bill information so that customers get to the company’s website to know more information.
Pros of Electronic Bill Payment & Presentment
No additional charges: The EBPP system usually does not take any additional charges from the customers to pay via online means. Some companies provide plenty of discount offers for paying online or using the Some companies offer a variety of discounts to customers who pay online or opt for the autopay method.
More accessibility: Through this system, customers are able to see their bills and generate payments electronically at any point in time and from every location.
Sped up the payment process: Companies and service providers get the advantage of receiving payments faster rather than waiting for a check to land in the mail.
Reduced occurrences of late or missing payments: The easy and autopay options lead to avoiding missing payments for the customer as well as the biller.
Reduced spending: Going online can help companies in the deductions of the cost for the companies and results in saving money. This system will help out the businesses by delegating billing functions to the external party, usually a bank.
Questions to Understand your ability
Que.1 What’s the main point of Electronic Bill Payment and Presentment (EBPP)?
A. To offer discounts on bills
B. To send bills and handle payments online
C. To mail out printed bills to customers
D. To cut down on company taxes
Que.2 In a Biller-Direct EBPP, what do companies do?
A. Collect bills from other companies and combine them
B. Process payments through a third-party bank
C. Send bills directly to customers and give them online access
D. Mail out bills for manual payments
Que.3 Consolidated EBPP is also called what?
A. Bank aggregators or consolidators
B. Direct Billers
C. Online Payment Processors
D. Billing Integrators
Que.4 Which of the following is NOT listed as an advantage of EBPP in the text?
A. Helps companies save money
B. Speeds up payments for businesses
C. Increases paper usage
D. Reduces late or missed payments
Que.5 How does EBPP make things easier for customers?
A. Cuts down on emails they receive
B. Offers discounts for paying in person
C. Letting them check and pay bills online anytime, from anywhere
D. Automatically sends paper copies of bills
Conclusion
EBPP makes paying bills more efficient by making it easier for companies and customers to do so and by saving them money. With features like autopay and less dependence on paper bills, it speeds up transactions, cuts down on late payments, and helps businesses lower their running costs by automating tasks.
FAQ's
It’s a system where companies send bills to you online, and you pay them electronically. No paper, no hassle.
Bills get sent to you digitally, you check them out, and then you pay online. It’s all done through the internet.
There are two: Biller-Direct, where the company deals with you directly, and Consolidated, where a third-party (usually a bank) handles multiple bills for you.
In Biller-Direct, the company sends you the bill directly, usually by email, and you log in to their site or app to pay.
A bank or another service combines bills from different companies, and you pay everything in one go through their portal. It’s all about convenience.
It’s faster, reduces missed payments, saves companies money, and makes it easier for you to pay anytime, anywhere.
Nope, usually there’s no extra charge. In fact, some companies even give you discounts if you pay online or set up autopay.
No printing, no mailing costs, and companies can offload billing to banks. Less work, more savings.
