It comes as no surprise that in the day and age we live in, the popularity of electronic bill payment is on the rise. A study done in 2017 found that approximately 8.2 billion bills — or 56% of all bills — are being paid online.
Because of the increasing popularity of this method of payment, it is essential that the vendor you are working with has these capabilities in place — not just for the convenience of your customer, but also for the massive savings when they switch from printed statements to electronic. Here we’ll break down these two advantages of electronic bill payment and presentment (EBPP), though there are many more that we could list.
First and foremost, the main advantage EBPP has over printed mediums is the immediate savings. DNI offers both print and EBPP services, so we see first-hand the amount of money that is being left on the table when a vendor doesn’t offer EBPP services.
On average, sending out a single printed statement costs around 53 cents, 43 cents of which is postage alone. When using electronic means, the cost dramatically drops down to 10 cents — 80% less than printed statements. These savings can be passed along to the customer, strengthening your relationship and increasing the chance of them staying with you for an extended period of time.
The convenience factor for EBPP services cannot be overlooked — both for you and your customers. When dealing with an electronic system, every aspect is housed online in one centralized location, giving you the ability to easily access and audit payments.
As for convenience on the customer’s side, notifications of payments due are received in minutes rather than days through the use of email or SMS communications. The notifications are delivered directly to the customer, not placed in a mailbox waiting until the recipient comes home and opens it. In fact, using electronic means for billing helps boost collections, especially in patient collections.
EBPP also offers upgraded security over printed means. Rather than sending confidential information through the mail with the chance of it being opened by someone other than the intended recipient, you have a direct and immediate line of communication with them. There is also a chance of printed communications being misplaced or lost during the delivery process — something that doesn’t happen with EBPP.
Electronic bill presentment and payment will be becoming the standard in the upcoming years. With the younger generations growing up with technology, there will be high demand for electronic solutions. The savings and convenience of EBPP cannot be argued; therefore, it is crucial to work with a vendor that offers these services.
If your vendor does not offer electronic solutions and you’re thinking about making a switch, take a look at our comprehensive Guide to Transitioning Statement Vendors to get an idea of what areas to evaluate in a new vendor and what the ideal transition process looks like. Want to find out what DNI’s EBPP services — along with much more — can do for you? Drop us a line and get a free consultation!