ELECTRONIC BILLING PRESENTMENT AND PAYMENT
Represents using the Internet as an electronic billing and payment
system.
BPP services allow consumers to view bills electronically using their
screen and pay them through electronic funds transfers from bank or
credit card accounts
EPPS is the systems that enable the online delivery and payment of
bills.
About 50% of bill payments are made through electronic systems like
EPPS.
Most widely used for recurring payments.
EBPP BUSINESS MODELS
There are four EBPP businnes models
But two competing businnes models are biller-direct model and
consolidator model.
Biller-direct process
the biller-direct model is a two-step process:
First,consumers are sent bills by e-mail notification
Then,customer will go to the merchant’s website to make payments
using their banking credentials.
has the advantage of allowing the merchant to engage with the
consumer
Consolidator
a third party aggregates all bills for consumers and permits one-stop
bill payment.
has the advantage of allowing consumers to see all their bills at one
website or app
But,the model faces several challenges due to an increased time lag
between billing and payment.
It also inserts an intermediary between the company and its customer.
EBPP infrastructure providers
they provide the software to create the EBPP system or handle billing
and payment collection for the biller.
Example MasterCard Remote Payment and Presentment Service