Electronic bill presentment and payment (EBPP) has revolutionized the way businesses and consumers interact with their bills. For credit unions, staying up to date with EBPP trends is crucial for enhancing member experiences.

The rise of EBPP

The earliest forms of EBPP emerged in the 1990s. However, their adoption was initially slow due to limited internet access. By the early 2000s, with the internet boom and the need for paperless billing, EBPP started gaining traction. Initially, these solutions were siloed, causing increased operational challenges and a fragmented view of payments.

With time, providers responded to the demand for integration. Modern EBPP solutions now offer a plethora of direct and indirect channels, such as customer websites, mobile payments, chatbots, and more. Such advancements help businesses choose appropriate channels tailored to their needs, offering an integrated bill payment experience.

In today's digitally driven world, EBPP is a prime example of how technology can elevate the user experience, increase efficiency, and offer powerful insights. EBPP isn't just about paying bills; it’s about optimizing a critical touchpoint.

Credit unions who modernize their bill pay systems benefit from:

1. Enhancing member experience: The primary point of contact for many credit union members is their bill payment experience. A seamless, user-friendly process can significantly bolster satisfaction levels. For instance, allowing guest payments without the need for intricate member IDs can make a world of difference. Members who experience easy online payments are also more receptive to additional offers, translating to higher loyalty.
2. Valuable insights:With platforms like Orbipay EBPP, credit unions can delve into how loans are being serviced, identifying which external financial institutions are predominantly used. Such insights can inform cross-selling opportunities, urging members to consider additional accounts or services.
3. Cost efficiency: Modern EBPP solutions provide substantial cost savings, as evidenced by Florida Credit Union's 50% reduction in cost per bill pay transaction after modernizing their system. The transition to self-service portals not only decreases operational costs but also empowers members with tools for self-sufficiency.
4. Fraud prevention: Advanced bill pay solutions can preempt overpayments and potential fraud, setting dynamic limits based on due amounts and credit lines.
5. Harnessing the power of real-time: Real-time payment networks, such as the FedNow^® Service and The Clearing House’s Real Time Payment^® - network, promise exciting advancements. There is a lot of potential in Request for Payment (RfP), as it ensures irrevocable, guaranteed fund transfers—perfect for high-risk transactions. While still in its nascent stages, the adoption of RfP is poised to grow, offering an efficient payment channel.
6. AI & chatbots: The integration of artificial intelligence (AI) and chatbots in bill pay systems can further streamline user queries, making way for efficient self-service. These tools can handle a plethora of tasks, from general inquiries to fraud detection, enhancing both user experience and system security.

For credit unions, embracing a modern EBPP solution is more than just an upgrade—it's a pathway to heightened member satisfaction, insightful data analytics, and operational excellence. As the digital realm evolves, ensuring a proactive stance in adopting state-of-the-art payment solutions is paramount. It's not just about staying ahead; it's about setting the standard.

To explore the history and future of EBPP and gain insights into its most important aspects, watch the full webinar, The Evolution and Opportunities of EBPP for Credit Unions, hosted by NACUSO and featuring Alacriti.

Kristen Jason is director of product marketing at Alacriti.