The recent eBilling Benchmarking Study conducted by Blueflame Consulting for NACHA estimates that 5.1 billion eBills were distributed through all channels in 2010 and that the tipping point, when more bills will be presented electronically than in paper, will be reached in 2016.
The 2010 eBilling Benchmarking Study shows that eBilling is gaining momentum across an ever broadening base of Billers who are extending eBilling options for their customers over the next two years. Billers with established programs are also energizing their efforts to boost customer adoption of paperless billing.
The majority of participating Billers expect eBilling to become mainstream over the next five years. While some Billers have been able to achieve nearly 100 % adoption of electronic billing through mandates, most Billers do not have that option. For Billers that cannot mandate eBilling, the perception is that after a decade of growth eBill adoption has “plateaued.” They believe that the easy converts have already been won over and in order to boost eBill adoption they must develop new and innovative targeted programs. Some Billers are exploring ways to migrate the enrollment process from ‘Opt-In’ to Opt-Out’ for new customers and change their default methods away from paper-based billing.
Notably, an ever expanding range of Billers are invigorating their marketing efforts to boost eBill adoption. Their goal is to achieve cost savings from paperless billing by emphasizing convenience, simplicity and environmental benefits.
Adoption Rates
eBilling is gaining momentum across markets with more billers coming online in 2011 and 2012. Although eBilling adoption trails customer adoption of electronic payments, eBills are making inroads among a broadening range of Billers. Telecommunications and Financial Services industry participants report the highest eBilling rates with 39% and 31% respectively (See Chart 1 below).
eBilling with paper suppression lags behind as many customers are reluctant to give up paper bills. This is most evident in the insurance and utility segments which are still ramping up their programs and must navigate complex legal and regulatory requirements. eBilling growth has been accelerating as 82% of participants reported increasing adoption by their customers and 88% of participants reported that eBill adoption is a significant opportunity for their organization. The three primary benefits of eBilling identified by participants which support expansion of their organization’s eBilling programs are:
- Cost savings of $0.40 to $0.50 per bill
- Improved customer satisfaction and retention
- Higher levels of electronic payments coincide with higher levels of paperless acceptance
This study was sponsored by NACHA’s Council for Electronic Billing and Payment (CEBP) and the PayItGreen Coalition. For information on the potential saving opportunities and how to streamline your invoicing process (email sales@unitedtranzactions.com).