"eBill Payment Strategies for 2005"

Electronic Bill Pay is high on the agenda for many billers. Until recently, almost all strategies involved Internet Bill Pay through customer self-service Biller Direct websites.

New technology now allows Billers to offer payment directly from within a secure Email Bill. Adoption rates are set to dramatically increase as customers are not required to register for this service. (The single biggest barrier to Internet Bill Pay.)

The process is a simple one: The biller delivers an electronic replica of their current paper bill directly into the customer's inbox, via secure email. The customer decrypts and opens the bill. There is a payment section alongside the 'Amount Due' that comprises three short payment fields that need to be completed. A payment button securely transmits the customer's payment information directly to a secure transaction server from which the payment is processed in exactly the same manner as the 'output' of a lock-box process.

There are many reasons why this payment mechanism is so much more convenient for both the Biller and the customer:

For the Biller:

• The Biller does not need to entice their customers 'to come and register' on their website. Adoption is therefore not dependent on pre-registered eBill customers.
• There are no marketing costs.
• There is no expensive Internet infrastructure required.
• The Biller does not need to store any consumer payment information.
• A significant percentage of consumers will pay their eBill the day they receive it, thereby drastically reducing the number of debtor days.
• Payment is concluded within the Biller's brand identity, no third party branding is evident.
• Biller's can link customers from the Email Bill to the Internet self-service portal for additional customer service.

• There is no need to register online for this service.
• There is no need to visit a single web page to view & pay the bill.
• Customers with dial up Internet access (60% of all US customers) can pay their bills without opening slow web pages.
• Payment takes less than 20 seconds.
• Payment can be made at anytime, even at the last minute.
• Payment is instant.
• There are no postage and envelope costs.
• There is no need to post anything.
• Payment receipt is received instantly and confirmed via email shortly thereafter.

Regards

Garin Toren
Chief Operating Officer

Striata Inc.
messaging innovation