Posted by Alison Arthur on 04 Dec 2018
Electronic bill presentment and payments (EBPP) is a wide-reaching discipline that encompasses everything from mobile-enabled bill payments to funding methods like debit cards, credit cards, and ACH. With so many moving parts, it’s easy for myths to develop about the basics of EBPP.
Here we’ll bust five common EBPP myths to help create a better understanding of how it all works.
Myth 1: Mobile devices are the go-to way to make electronic bill payments
There’s no denying that Americans love their smartphones, with an estimated 77% of the population owning one. And tablets aren’t far behind with an ownership rate of 53%. But an analysis of bill payments made via Alacriti’s EBPP solution, Orbipay® EBPP, shows that most users are still making their bill payments on desktop computers.
The data shows that desktops were used for 70% of total transactions in 2017. Will this number change as smartphone ownership continues to rise and users become more accustomed to making bill payments on their mobile devices? Stay tuned for our analysis of the 2018 data to see what changes.
Myth 2: Electronic bill payments must be made on desktop computers and mobile devices
Despite the heavy use of desktop computers and mobile devices, they’re no longer the only way to make electronic bill payments. The explosion of chatbots powered by artificial intelligence is making voice payments easier and more accessible than ever. EBPP solutions can now empower users to make payments using smart home speakers like Amazon Alexa and Google Home. A simple spoken command like, “Alexa, pay my auto loan bill,” can trigger an on-demand, user-friendly payment experience that requires no screen time at all.
Myth 3: Mobile bill payments must be made in browsers or dedicated apps
Mobile bill payments no longer require visiting the biller’s website or downloading the biller’s app. EBPP solutions can now enable users to make payments directly through the text messaging platforms they use most. In addition, some EBPP solutions can accept bill payments by leveraging chatbot technology in commonly used apps like Facebook Messenger. Pay by Text and Facebook Messenger can deliver bill payments to interfaces that customers are using anyway, eliminating yet another barrier to making on-time bill payments.
Myth 4: People prefer using plastic for electronic bill payments
Considering that 87% of Americans own a debit card and 44% own a credit card, it’s natural to assume that cards are used most frequently for electronic bill payments. Despite their popularity, our Orbipay EBPP data shows that bill payments made via bank accounts (ACH) are still king, with ACH funding 51% of total transactions in 2017. However, debit cards have a strong foothold as well, representing 31% of total transaction volume for the year.
Myth 5: Electronic bill payments are made most often on nights and weekends
Our 2017 analysis shows that users like to make their bill payments on weekdays. One Time payments (payments that did not use pre-configured AutoPay or Recurring schedules) were made most often on Fridays between 11:00 am and 12:00 pm ET. In fact, Friday holds the top seven most popular time slots comprising the hours between 10:00 am and 5:00 pm ET. The second most popular day is Monday, which holds spots eight through twelve.
The Bottom Line: There are commons myths around EBPP that can prevent businesses from providing the most user-friendly experience to their customers. Get the facts by working with an EBPP solution provider that can help bust these myths and deliver the experience that your customers are looking for.