What Does Electronic Bill Presentment and Payment Mean?
Electronic bill presentment and payment (EBPP) is a process that allows the creation and delivery of bills or invoices as well as facilitates the payment for those invoices over the Internet. The process or service is primarily used in industries such as retail, financial services, telecommunications service providers and even utilities providers.
Contrary to popular belief, EBPP is not the same as E-commerce or buying items over the Internet.
Techopedia Explains Electronic Bill Presentment and Payment
Buying items over the Internet has become extremely popular because this use case is very easy to implement over the Internet and it has been made secure by various protocols. However, viewing bills such as credit card bills and utility bills are not yet that widespread, even though there are facilities that cater to this; most people simply either do not know about this or are more comfortable with paper billing. So, although bills can be viewed online, there are often very few ways to pay them, if at all. In this way, EBPP is still incomplete.
During past decades, banks have partnered with different financial and service companies to allow customers to pay their bills online through a bank’s specific online facility; that is, if the customer has an account with the bank. This is more of a ploy to get people to open a bank account than actual EBPP. Real EBPP should be done through a single facility directly controlled by the organization that does the actual billing, and it should be very similar to E-commerce, which is very simple and allows the user to choose from many methods of payments.
The growth of EBPP has mainly been delayed by financial organizations, such as banks, owing to their refusal to relinquish control of lucrative cash-management services and to disputes over the adoption of a uniform security and implementation standard.