P is for payment

When will we be able to pay our bills directly from an electronic invoice?

The first challenge in e-billing is to conquer the presentation or delivery of invoices and statements through an electronic channel. The most obvious options for electronic rendering are to deliver the invoice by e-mail, or to present the invoice on the Web.

E-mail provides a `push` process that delivers the document directly into the recipient`s e-mail inbox. E-mail invoices need to be protected through encryption, and must adhere to the limitations of typical corporate and consumer e-mail server capabilities. File size, file type and the software required to access the electronic invoice are all key factors to be considered by the would-be e-biller.

The Web provides a `pull` process that requires the recipient to `collect` their invoice from a designated Web site. The Web site needs to protect the confidentiality of the invoice through a secure login process. A notification message is typically delivered either by e-mail or SMS, to encourage users to `collect` their bill. The benefit of Web presentation of invoices is the manipulation of information that can be programmed into the site. Very large bills, such as invoices with thousands of line items, are also more suited to Web viewing, than to delivery by e-mail.

Local business is already far down the curve of bill presentment, with at least a million invoices being delivered electronically per month.

And while some industries are only now recognising the incredible cost savings and enviable process efficiencies to be achieved through e-billing, other organisations are already chasing the second `p`.

While some industries are only now recognising the incredible cost savings and enviable process efficiencies to be achieved through e-billing, other organisations are already chasing the second `p`.

Alison Wright, sales and marketing director, Striata

The fulfilment of the EBPP process involves enabling the bill recipient to action payment of due amounts easily and efficiently. Closing the payment loop represents one of the primary benefits of e-billing - a shortening of payment cycles. As payment functionality develops, so different processes have evolved, determined primarily by the banking and payment structure existing in each country.

We`re lucky. In SA`s structured banking environment, the key players in the banking environment are the primary candidates for payment fulfilment. The banks already have trusted payment processes, as well as a growing community of customers comfortable with electronic banking.

The early adopters of e-bill payment are most likely to be users of Internet banking facilities. These users are already familiar with online banking processes, and will have an established electronic authentication profile with their banks. Assisting these customers to pay directly from an electronic bill involves providing a link from the electronic invoice to the login page of their Internet banking site. From that point onward, the customer completes a standard ad hoc payment process, with the added benefit of having the amounts payable pre-populated on the banking site.

While the Internet banking community will be the first to enjoy the convenience of payment of e-bills, non-Internet customers will not be ignored.

Processes such as ad hoc debit authorisation are under development to enable anyone that has a bank account to action payment of an electronic bill.

All of the primary banks in SA have embarked on projects that will enable payment of e-bills. Some are ahead of others, but the objective is the same: close the loop on EBPP so that we can all start enjoying the full value of this groundbreaking technology.