All across the country, fewer and fewer Americans are carrying cash. And paper-based checks are on the decline, with just $18.3 billion in check payments in 2010, compared to $37.3 billion just 10 years prior.
It’s not just credit and debit cards in retail stores that are eating into check processing. Electronic bill payment is on the rise. According to a report by First Data, two-thirds of all bills are paid electronically today [PDF].
What exactly is fueling this rapid growth in electronic bill payments? How can you, as a business owner, take advantage of electronic billing? What are the implications for your business?
Electronic Payment Processing Benefits Consumers and Merchants Alike
We’re increasingly a cashless society. One out of 10 Americans doesn't carry cash at all, and nearly 80 percent carry less than $50 at any given moment.
Electronic payments allow consumers to pay for services online or via their mobile device. For some it’s about convenience and ease-of-payment, for others it’s about tracking their expenses electronically. For still other consumers, online bill pay is about the security of being cash-free.
Merchants benefit from electronic bill payment, too. One of the main selling points for many businesses is the flexibility and freedom of choice it offers to their customers. There’s also the advantage of quick deposit into your bank account. Electronic payments require a lot less time and paperwork, allowing companies to reduce expenses and focus on growing the business.
Factors to Consider When Switching to Electronic Invoicing and Bill Pay
When you switch to electronic billing, you’ll want to ensure you have the infrastructure and processes in place to ensure a seamless bill pay experience for you and your customers.
The following questions will help you prepare:
- Does your payment processor allow you to send invoices electronically and collect payment online?
- When was the last time your payment processing infrastructure?
- Is your website set up to accept online payments?
- How are you encouraging customers to use your electronic bill pay option?
- How will you measure the growth in web-based bill payment?
- What other benefits can you extend to customers when they’re submitting online payments?
Getting Started: Choose an Electronic Billing Solution
To begin exploring e-payment options for your company, contact us today for a free consultation. BluePay has helped businesses just like yours embrace electronic payment processing and we’ve got the expertise to answer your questions. Let’s get started!