Electronic Bill Presentment & Payment This is an old EBPP presentation but it provides some basic content to start your research on selecting a solution.

Overall Agenda Solutions and Market Overview in the EBPP industry Preliminary Recommended Approach

Solutions and Market Overview in the EBPP industry

Preliminary Recommended Approach

Electronic Bill Presentment & Payment Solutions and Market Overview

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components of a EBPP Solution Basic Foundation Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components of a EBPP Solution

Basic Foundation

Packages

Standards

Strategies

Customer Care

Investment Figures

What the Market is saying about EBPP? By 2001, the volume of electronic bills will grow to 12 %, which translates to an annual 8 billion repetitive bills presented electronically Gartner Group The companies that are first to issue bills over the Internet will gain a significant competitive advantage , reduce costs, and increase revenue from the Internet customers." Killen & Associates Enterprises that offer EBPP must also offer value-added customer service at the bill site if they expect to build customer loyalty and continued usage. Gartner Group UK and European companies, including Barclays, Scottish Power, Telia (Sweden), Deutsche Telecom, and others, will use the Internet to deliver 40% of their bills and statements within 5 years . Killen & Associates

By 2001, the volume of electronic bills will grow to 12 %, which translates to an annual 8 billion repetitive bills presented electronically Gartner Group

The companies that are first to issue bills over the Internet will gain a significant competitive advantage , reduce costs, and increase revenue from the Internet customers." Killen & Associates

Enterprises that offer EBPP must also offer value-added customer service at the bill site if they expect to build customer loyalty and continued usage. Gartner Group

UK and European companies, including Barclays, Scottish Power, Telia (Sweden), Deutsche Telecom, and others, will use the Internet to deliver 40% of their bills and statements within 5 years . Killen & Associates

What the Market is saying about EBPP? (cont.) More than a 30 % savings in billing and customer care alone after implementing EBPP. AT&T We have minimal acquisition costs. Customers sign up online . They pay via credit card, which cuts down on bad debts . And customer service costs are much lower. MCI US telcos, will save $180 million from EBPP in the year 2000. By 2005 , this savings will approach $750 million . Killen & Associates The 4.5 % acceptance of EBPP among consumers will jump to 45% if the consumer could manage up to 6 bills at one online site. Yankee Group EBPP grew by 150 percent between 1996 and 1997. Gartner Group

More than a 30 % savings in billing and customer care alone after implementing EBPP. AT&T

We have minimal acquisition costs. Customers sign up online . They pay via credit card, which cuts down on bad debts . And customer service costs are much lower. MCI

US telcos, will save $180 million from EBPP in the year 2000. By 2005 , this savings will approach $750 million . Killen & Associates

The 4.5 % acceptance of EBPP among consumers will jump to 45% if the consumer could manage up to 6 bills at one online site. Yankee Group

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components of a EBPP Solution Basic Foundation Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components of a EBPP Solution

Basic Foundation

Packages

Standards

Strategies

Customer Care

Investment Figures

What are some of the Benefits? Business customers save an average of 11.5 cents per item due to reduced processing costs * For each customer converted from a check to an electronic payment for a loan, financial institutions report savings of up to $4.11 per payment by eliminating loan coupons and related processing costs * EBPP can help enterprises save substantially through better information analysis - billing and cost centers** Telcos can reduce the cost of billing each customer to $0.40 from $1.25, while bill payment could be cut to $0.10 from $0.50. *** Via EBPP, Telcos can save up to 60% of what they spend on each paper-based bill they mail. *** As more billing data is electronically transmitted, rather than mailed, telcos will benefit from increased traffic over their networks . *** Increase customer loyalty and improve customer retention. * Payment Systems, Inc. Study , ** Gartner Group, *** Killen & Associates

Business customers save an average of 11.5 cents per item due to reduced processing costs *

For each customer converted from a check to an electronic payment for a loan, financial institutions report savings of up to $4.11 per payment by eliminating loan coupons and related processing costs *

EBPP can help enterprises save substantially through better information analysis - billing and cost centers**

Telcos can reduce the cost of billing each customer to $0.40 from $1.25, while bill payment could be cut to $0.10 from $0.50. ***

Via EBPP, Telcos can save up to 60% of what they spend on each paper-based bill they mail. ***

As more billing data is electronically transmitted, rather than mailed, telcos will benefit from increased traffic over their networks . ***

Increase customer loyalty and improve customer retention.

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components and Basic Foundation of a EBPP Solution Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components and Basic Foundation of a EBPP Solution

Packages

Standards

Strategies

Customer Care

Investment Figures

Components of a EBPP Solution Customer Care maintain EBPP activity history expand customer service using chat rooms, email & CTI integration use the EBPP web page as a touch point ability to open a new case Consolidator Integration deliver bill summary and/or detailed information to consolidators such as CheckFree Payment & Posting pay the bill electronically using CheckFree or CyberCash let the users decide how to distribute their bill inside their corporations (using their cost centers) posting refers to taking information about which customers paid, when they paid, and how much they paid, and incorporating this information on a daily basis into a file that can be used to update the accounts receivable system Marketing 1:1 use the customer EBPP web page for targeted marketing as a source of additional revenue using online advertising, cross-sell promotions, and affinity programs

Customer Care

maintain EBPP activity history

expand customer service using chat rooms, email & CTI integration

use the EBPP web page as a touch point

ability to open a new case

Consolidator Integration

deliver bill summary and/or detailed information to consolidators such as CheckFree

Payment & Posting

pay the bill electronically using CheckFree or CyberCash

let the users decide how to distribute their bill inside their corporations (using their cost centers)

posting refers to taking information about which customers paid, when they paid, and how much they paid, and incorporating this information on a daily basis into a file that can be used to update the accounts receivable system

Marketing 1:1

use the customer EBPP web page for targeted marketing as a source of additional revenue using online advertising, cross-sell promotions, and affinity programs

Components of a EBPP Solution (cont.) Data Extraction & Storage rule definition to extract data from legacy billing file formats storage months of billing data online Customer Profile ability to maintain the customer profiles for the presentation of the bill Composition & Content personalization rules for web content used with billing data Tracking monitor and manage EBPP activities from log on date, time to retrieval history Notification & Presentment present bill in the web site email to notify customers and present bill via email not just in the web Security encrypted data and passwords using SSL (secure sockets layer)

Data Extraction & Storage

rule definition to extract data from legacy billing file formats

storage months of billing data online

Customer Profile

ability to maintain the customer profiles for the presentation of the bill

Composition & Content

personalization rules for web content used with billing data

Tracking

monitor and manage EBPP activities from log on date, time to retrieval history

Notification & Presentment

present bill in the web site

email to notify customers and present bill via email not just in the web

Security

encrypted data and passwords using SSL (secure sockets layer)

EBPP Basic Foundation Open: connect and integrate with any RDBMS systems, customer care applications, e-mail servers, and legacy billing systems Standards: SOA, SSL, HTTP, HTML, POP3, Java, and OFX, XML, CORBA, COM and MIME Scalable: N Tier, fully distributed architecture Easy to deploy and manage: off-the-shelf package, GUI tools

Open: connect and integrate with any RDBMS systems, customer care applications, e-mail servers, and legacy billing systems

Standards: SOA, SSL, HTTP, HTML, POP3, Java, and OFX, XML, CORBA, COM and MIME

Scalable: N Tier, fully distributed architecture

Easy to deploy and manage: off-the-shelf package, GUI tools

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components and Basic Foundation of a EBPP Solution Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components and Basic Foundation of a EBPP Solution

Packages

Standards

Strategies

Customer Care

Investment Figures

EBPP PLAYERS

Who is who? edocs - strong package used in many telcos, utilities, and finance institutions - was one of the top 3 choices in an InformationWeek Study Just In Time - used by ATT in United States, strong player pushing for standards BlueGill - was one of the top 3 choices in an InformationWeek Study Cygent - offers EBPP and OSS solutions for ebusiness and telcos Info Directions - provides EBPP and customer care products ITDS - provides EBPP and customer care products Checkfree - offers payment transactions, provides bill consolidation & payment services to large billers, consumers, and financial institutions, it has partnerships with many EBPP packages Cybercash - offers payment transactions Exchange - new group backed up by major financial institutions Transpoint - backed up by Microsoft, was one of the top 3 choices in an InformationWeek Study. Competes with Checkfree. billserv.com - provides bill consolidation & payment services to medium size billers, consumers, and financial institutions, it has partnerships with many EBPP packages Broadvision & NetDynamics - offer ebusiness solutions and tools

edocs - strong package used in many telcos, utilities, and finance institutions - was one of the top 3 choices in an InformationWeek Study

Just In Time - used by ATT in United States, strong player pushing for standards

BlueGill - was one of the top 3 choices in an InformationWeek Study

Cygent - offers EBPP and OSS solutions for ebusiness and telcos

Info Directions - provides EBPP and customer care products

ITDS - provides EBPP and customer care products

Checkfree - offers payment transactions, provides bill consolidation & payment services to large billers, consumers, and financial institutions, it has partnerships with many EBPP packages

Cybercash - offers payment transactions

Exchange - new group backed up by major financial institutions

Transpoint - backed up by Microsoft, was one of the top 3 choices in an InformationWeek Study. Competes with Checkfree.

billserv.com - provides bill consolidation & payment services to medium size billers, consumers, and financial institutions, it has partnerships with many EBPP packages

Broadvision & NetDynamics - offer ebusiness solutions and tools

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components and Basic Foundation of a EBPP Solution Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components and Basic Foundation of a EBPP Solution

Packages

Standards

Strategies

Customer Care

Investment Figures

EBPP Standards Three Models Open Financial Exchange (OFX-Pres) The OFX standard defines two fundamental capabilities for billing: Communications of sign-up information from consolidator to biller; and communication of bill summary information from biller to consolidator. OFX does not define standards for the look of bills . It only provides a "control channel" for information about bills. Integrion's GOLD Integrion is an independent, for-profit company owned by 18 financial institutions, plus Visa U.S.A. and IBM. Its GOLD specification deals primarily with the payments and transactions for belonging to financial institutions . GOLD is a range of messages and transactions of banking functions for the financial institutions to communicate with end-users. Microsoft's Biller Integration System (BIS) Microsoft/First Data Corp (MSFDC) is a bill presentment model that supports OFX for payment information, and BIS for the bill presentation. The BIS has two primary functions that are exclusive to MSFDC: It only works with Microsoft tools to create E-bills, and it will only exchange data between an MSFDC biller site and the financial service center. Source: Gartner Group

Three Models

Open Financial Exchange (OFX-Pres)

The OFX standard defines two fundamental capabilities for billing: Communications of sign-up information from consolidator to biller; and communication of bill summary information from biller to consolidator. OFX does not define standards for the look of bills . It only provides a "control channel" for information about bills.

Integrion's GOLD

Integrion is an independent, for-profit company owned by 18 financial institutions, plus Visa U.S.A. and IBM. Its GOLD specification deals primarily with the payments and transactions for belonging to financial institutions . GOLD is a range of messages and transactions of banking functions for the financial institutions to communicate with end-users.

Microsoft's Biller Integration System (BIS)

Microsoft/First Data Corp (MSFDC) is a bill presentment model that supports OFX for payment information, and BIS for the bill presentation. The BIS has two primary functions that are exclusive to MSFDC: It only works with Microsoft tools to create E-bills, and it will only exchange data between an MSFDC biller site and the financial service center.

EBPP Standards (cont.) None of these standards are widely used - market still needs to mature Gartner Group Of the three standards addressed here, the only one that offers promise for the success of EBPP is the version of OFX that deals with presentment . Gartner Group When choosing an EBPP application, billers should pick a product that allows the bill to be sent through an open system that enables users to access bills on any venue. Gartner Group OFX as an open standard: backed by Just in Time Solutions, a bill presentment software and server vendor; Intuit, a financial management software company; and AT&T, a telecommunications company. EBPP is among the more immature market segments we've ever tested. InformationWeek EBPP Product Study, 1998 Source: Gartner Group

None of these standards are widely used - market still needs to mature Gartner Group

Of the three standards addressed here, the only one that offers promise for the success of EBPP is the version of OFX that deals with presentment . Gartner Group

When choosing an EBPP application, billers should pick a product that allows the bill to be sent through an open system that enables users to access bills on any venue. Gartner Group

OFX as an open standard: backed by Just in Time Solutions, a bill presentment software and server vendor; Intuit, a financial management software company; and AT&T, a telecommunications company.

EBPP is among the more immature market segments we've ever tested. InformationWeek EBPP Product Study, 1998

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components and Basic Foundation of a EBPP Solution Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components and Basic Foundation of a EBPP Solution

Packages

Standards

Strategies

Customer Care

Investment Figures

EBPP Strategies Identifying how the EBPP and Customer Care process fits into the business model and what value it will bring to the enterprise EBPP is a touch point to the customer develop an in-house strategy for converting from paper to EBPP how this fit into an overall E-Business plan evaluate in-house IT resources to maintain the EBPP web site determine what is needed to build and/or support round-the-clock billing, payment and customer service with an E-mail response Web site and Call Center buying or outsourcing the EBPP activity need to determine what customers do you want to use EBPP and if these customers are willing to change the way they do business, i.e., what's in it for them?

Identifying how the EBPP and Customer Care process fits into the business model and what value it will bring to the enterprise

EBPP is a touch point to the customer

develop an in-house strategy for converting from paper to EBPP

how this fit into an overall E-Business plan

evaluate in-house IT resources to maintain the EBPP web site

determine what is needed to build and/or support round-the-clock billing, payment and customer service with an E-mail response Web site and Call Center

buying or outsourcing the EBPP activity

need to determine what customers do you want to use EBPP and if these customers are willing to change the way they do business, i.e., what's in it for them?

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components and Basic Foundation of a EBPP Solution Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components and Basic Foundation of a EBPP Solution

Packages

Standards

Strategies

Customer Care

Investment Figures

EBPP and Customer Care By 2001, organizations that do not offer effective channels for electronic billing, as well as customer contact centers, will not meet consumer expectations . They will find themselves losing out to the competition and battling increasing costs * To build loyalty and take advantage of one-to-one marketing and cross-selling opportunities, billers must enhance their sites with interactive customer service functions. Offer value-added information-based services that can offer a biller true competitive advantages, such as - personal analysis of telephone usage or sorting call records for business billing purposes. Value-added bill presentment is more satisfying to the customer, as well as a competitive advantage for possible cross-selling, up-selling and data mining for the enterprise. Enterprises should view their bill presentment site as a customer-care service and a "touch point” for their organization * Gartner Group (1999)

By 2001, organizations that do not offer effective channels for electronic billing, as well as customer contact centers, will not meet consumer expectations . They will find themselves losing out to the competition and battling increasing costs *

To build loyalty and take advantage of one-to-one marketing and cross-selling opportunities, billers must enhance their sites with interactive customer service functions.

Offer value-added information-based services that can offer a biller true competitive advantages, such as - personal analysis of telephone usage or sorting call records for business billing purposes.

Value-added bill presentment is more satisfying to the customer, as well as a competitive advantage for possible cross-selling, up-selling and data mining for the enterprise.

Enterprises should view their bill presentment site as a customer-care service and a "touch point” for their organization

Agenda What the Market is saying about EBPP? What are some of the Benefits? Components and Basic Foundation of a EBPP Solution Packages Standards Strategies Customer Care Investment Figures

What the Market is saying about EBPP?

What are some of the Benefits?

Components and Basic Foundation of a EBPP Solution

Packages

Standards

Strategies

Customer Care

Investment Figures

EBPP Investment Figures EBPP off-the-self packages : average price is $250,000 but it could vary from $50,000 to $500,000. Implementation and Integration (translate billing data and integrate the EBPP web site into the enterprise): it ranges from $4 to up to $20 for systems integration for every $1 spend on software. Expect to spend $150,000 to translate their bill formats, $1,000 to $1,500 to design a template and then $0.30 per transaction. Add-on customer service enhancements increase costs for each additional service. It is recommended that businesses use a phased approach to initiating an E-billing presentation piece. Source: Gartner Group

EBPP off-the-self packages : average price is $250,000 but it could vary from $50,000 to $500,000.

Implementation and Integration (translate billing data and integrate the EBPP web site into the enterprise): it ranges from $4 to up to $20 for systems integration for every $1 spend on software.

Expect to spend $150,000 to translate their bill formats, $1,000 to $1,500 to design a template and then $0.30 per transaction.

Add-on customer service enhancements increase costs for each additional service.

It is recommended that businesses use a phased approach to initiating an E-billing presentation piece.

Direct Billing vs Outsourcing Benefits : Control over gathered information from customer Biller branding and logo placement Control over privacy Advantages of browser technology for "offline" viewing Payment is made directly through biller's bank Challenges : Converting data stream into HTML format Entering into template Cost of hosting and maintaining own site Setting up and maintaining payment services Benefits : Concentrator retains billing details Customer sees bill summary only Concentrator hosts and maintains billing Web site Payment is made through concentrator's bank Challenges : Eliminates biller/customer loyalty Reduces float advantage Third-party branding opportunity Privacy conflict with customer

Benefits :

Control over gathered information from customer

Biller branding and logo placement

Control over privacy

Advantages of browser technology for "offline" viewing

Payment is made directly through biller's bank

Challenges :

Converting data stream into HTML format

Entering into template

Cost of hosting and maintaining own site

Setting up and maintaining payment services

Benefits :

Concentrator retains billing details

Customer sees bill summary only

Concentrator hosts and maintains billing Web site

Payment is made through concentrator's bank

Challenges :

Eliminates biller/customer loyalty

Reduces float advantage

Third-party branding opportunity

Privacy conflict with customer

Direct Billing vs Outsourcing Cost for Direct Billing Package, Implementation, EBPP Web Site maintenance Cost for Outsourcing Implementation Monthly 100,000 customers at .30 cents (average) transaction cost over 5 years: $1.8M Source: Gartner Group (1999)

Cost for Direct Billing

Package, Implementation, EBPP Web Site maintenance

Cost for Outsourcing

Implementation

Monthly 100,000 customers at .30 cents (average) transaction cost over 5 years: $1.8M

High Level Functionality 1-5 Capability to present current and last 3 bills (image or image-like) through Internet, including call detail resentment and capability to sort call detail by date & time, terminating number, terminating city and amount. This capability must include customer notification via e-mail when a new bill has been generated.

Capability to present current and last 3 bills (image or image-like) through Internet, including call detail resentment and capability to sort call detail by date & time, terminating number, terminating city and amount. This capability must include customer notification via e-mail when a new bill has been generated.

High Level Functionality 2-5 Allow the customer to print or download the invoice into a text file. Capability to optionally send bills to customers via e-mail, allowing customers to subscribe to this service. Capability to accept customer payment including payment to multiple bill accounts in the same transaction.

Allow the customer to print or download the invoice into a text file.

Capability to optionally send bills to customers via e-mail, allowing customers to subscribe to this service.

Capability to accept customer payment including payment to multiple bill accounts in the same transaction.

High Level Functionality 3-5 Capability to receive customer requirements and inquiries and take actions including: Adjustments Refunds Payment re-assignment Notify payment made through electronic transfer to Payment department Dispute for unknown calls Fraud suspicion Obtain legal invoice copy Inquiry to un-billed calls Service block/n-bloc request Inquiry customer billing structure Change billing structure and offers This function should include to option to attach files when customer is submitting a request.

Capability to receive customer requirements and inquiries and take actions including:

Adjustments

Refunds

Payment re-assignment

Notify payment made through electronic transfer to Payment department

Dispute for unknown calls

Fraud suspicion

Obtain legal invoice copy

Inquiry to un-billed calls

Service block/n-bloc request

Inquiry customer billing structure

Change billing structure and offers

This function should include to option to attach files when customer is submitting a request.

High Level Functionality 4-5 Support residential and business customers including all services Capability to generate marketing campaigns including 1 to 1 and generic Capability to receive potential customers applications Capability to allow current customers to apply for new services Other documents presentment, including letter of agreement and bill receipt proof Capability to record and analyze customer behavior and preferences on the Site

Support residential and business customers including all services

Capability to generate marketing campaigns including 1 to 1 and generic

Capability to receive potential customers applications

Capability to allow current customers to apply for new services

Other documents presentment, including letter of agreement and bill receipt proof

Capability to record and analyze customer behavior and preferences on the Site

High Level Functionality 5-5 Scalable to include new functions Security module including access and privilege levels Return receipt via e-mail when customer receives invoice or invoice notification General information module CTI Integration Call Center Integration High availability (7 X 24)

Scalable to include new functions

Security module including access and privilege levels

Return receipt via e-mail when customer receives invoice or invoice notification

General information module

CTI Integration

Call Center Integration

High availability (7 X 24)

Recommended Packages Checkfree - offers payment transactions, provides bill consolidation & payment services to large billers, consumers, and financial institutions, it has partnerships with many EBPP packages Transpoint - backed up by Microsoft, was one of the top 3 choices in an InformationWeek Study. Competes with Checkfree. edocs - strong package used in many telcos, utilities, and finance institutions - was one of the top 3 choices in an InformationWeek Study Just In Time - used by ATT in United States, strong player pushing for standards BlueGill - was one of the top 3 choices in an InformationWeek Study

Checkfree - offers payment transactions, provides bill consolidation & payment services to large billers, consumers, and financial institutions, it has partnerships with many EBPP packages

Transpoint - backed up by Microsoft, was one of the top 3 choices in an InformationWeek Study. Competes with Checkfree.

edocs - strong package used in many telcos, utilities, and finance institutions - was one of the top 3 choices in an InformationWeek Study

Just In Time - used by ATT in United States, strong player pushing for standards

BlueGill - was one of the top 3 choices in an InformationWeek Study

End of Presentation This is an old EBPP presentation but it provides some basic content to start your research on selecting a solution.