Buffalo Bills and E-billing Process Works

Overview: Fiserv, formed in July of 1984, became the leading United States Internet banking services provider and leader in electronic bill payment and presentment services upon acquiring CheckFree in 2007. In 2009 only a small portion of the company’s e-commerce revenue came from e-billing, whereas the majority came from electronic bill payment. E-billing, also called paperless billing, is a method in which financial intermediaries or other billers can send bills to their customers over the internet, and electronic bill payment would be offering customers to pay those bills online. The problem that Fiserv had run into was getting more customers to buy into the e-billing process. It was an easy sell to the financial intermediaries and other billers. They would be saving money in postage time needed to send bills out. However, these people did not have the time to persuade the end customer to begin accepting e-billing over receiving a paper bill in the mail. By becoming involved in both the incoming and outgoing transactions of a customer, Fiserv could substantially increase its financial position.
Facts
There are roughly 86 million “online” households in the United States. Of these households, 70% had been using electronic bill payment, but only 20% had been using e-billing. For the intermediaries (banks and billers) a paper bill costs roughly $1.25 per bill, but they could save up to 45%, or roughly $.56, per bill if customers no longer received a paper bill. Furthermore, customers who were receiving the e-bills, even if they were still receiving paper bills as well, required less customer service help. This allows for an additional saving of $2 to $4 per customer regardless of whether the customer was still receiving the paper bills. Obviously this would be an easy sell to any of the billers. They are saving money and hopefully increasing traffic through their websites by having customers receive their bills online. This could be posed as a