Fitting the Bill: How Automated Bill Presentment and Payment Are Transforming Business

Bill pay is a routine fact of life for consumers, but this everyday practice is often fraught with inconvenience, costs and risks. For the many companies that still rely on paper-based billing and payment methods, these processes are not only time-consuming and inefficient but also prone to errors that can damage a firm’s reputation and customer loyalty. Moreover, such legacy systems are particularly vulnerable to fraud, which can do irreparable harm to both payers and payees.

Electronic bill presentment and payment (EBPP) systems are emerging as a must-have component of payments modernization for companies across the board. These automated systems reduce manual errors, accelerate billing cycles and improve cash flow predictability. They also enhance the customer experience by offering convenience, control and greater security. With multiple payment options, mobile accessibility and real-time notifications, EBPP aligns perfectly with modern consumer preferences for seamless, on-the-go financial management. These solutions also allow companies to push back on paper — for good.

The Paper Chase: Legacy Billing Challenges

Loyalty Liability: How Outdated Billing Strains Customer Relationships

EBPP Streamlines Bill Pay for Both Firms and Customers

Putting EBPP Into Action

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The Paper Chase: Legacy Billing Challenges

Traditional paper-based billing and payments are rife with inefficiencies, errors and risks that can negatively impact a business’s cash flow. Highly vulnerable to fraud, these methods regularly place corporate and consumer funds in jeopardy.

Paper-based billing and payments are the chief obstacles to business cost reduction.

Creating and sending paper bills and processing check payments are time-consuming, labor-intensive and costly. As of 2024, paper-based invoicing and payments were businesses’ top two barriers to reducing costs and improving performance. In 2025, taking staff salaries, benefits, technology, overhead and other operating expenses into account, processing a single paper-based bill costs organizations an average of $9.40. Although this cost has begun to decline in recent years as digitization makes headway, there is still substantial room for improvement. The average time to process a bill is 9.2 days, diverting significant time and effort from value-adding or cost-reducing opportunities. In contrast, organizations that leverage digital or automated billing can lower processing costs per bill to $2.78 and processing time to just 3.1 days.

9.2 days

The average time it takes to process a single paper bill

Paper-based payments are a key driver in rising fraud rates.

Paper payments sent through the mail are highly susceptible to fraud, as they can easily be intercepted or misdirected. Although one might assume check fraud to be a thing of the past, it is still very much alive today. According to the Association for Financial Professionals, checks remained the payment method most vulnerable to fraud in 2024, at 65%. In addition, more than 20% of organizations reported fraud due to interference with the United States Postal Service, up 10 percentage points from 2022.
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Loyalty Liability: How Outdated Billing Strains Customer Relationships

Traditional billing practices are characterized by a lack of payment flexibility, limited self-service options and, ultimately, inconvenience for consumers, resulting in customer dissatisfaction and strained relationships.

Paper billing and payments are a growing liability in a digital-first world.

70%

of customers expect their bill payments to be processed the same day or instantly.

According to global FinTech FIS, today’s digital-first world has raised expectations on both sides of the bill-paying equation. Businesses naturally have an interest in receiving faster, more efficient payments, but payers are also demanding increased convenience, transparency and control over the bill-paying process. Technology is delivering on those growing demands with increasingly sophisticated automated bill presentment and payment solutions.

However, legacy billing maintains a stubborn grip over many organizations — especially in the utilities sector. A recent white paper reported that a collective 63% of utility customers are still receiving paper bills. One-third (33%) receive both electronic and paper bills, a practice that needlessly drives up providers’ billing costs while inundating consumers with paper waste. By making it easier to switch to paperless billing and offering better customer service and communication, companies can encourage this selection, benefiting both parties.

Customers are demanding digital bill pay to match their other online experiences.

Moreover, a recent Experian survey found that the majority of bill payers actually prefer to pay online. In fact, the survey found that the share of customers who pay bills in person or via mail is rapidly dwindling. Just 17% of customers say they visit a location to pay a bill, while 15% send bills by mail. Meanwhile, 58% of customers surveyed say they pay bills online, and 38% pay via their mobile apps. Forty-two percent of customers surveyed say they use an autopay system, which has the additional benefit of eliminating the problem of forgetting to pay.

Consumer expectations around bill pay are rising.

Another survey indicates that customers are showing reduced tolerance for slow processing of their bill payments. More than two-thirds (70%) expect their bill payments to be processed the same day or instantly. As a result, 65% of customers are more likely to select a payment method that offers real-time processing than a traditional method. With 34% of customers using digital wallets for this purpose when available, service providers should cater to this preference for faster, digital bill payment options.
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EBPP Streamlines Bill Pay for Both Firms and Customers

EBPP systems are transforming billing and payment processes by reducing manual errors, speeding up billing cycles and improving cash flow predictability, all while enhancing the customer experience.

EBPP results in more on-time payments and better cash flow.

Electronic systems for bill presentment and payment are a game-changer for billing companies. Consolidating bill generation, delivery and payment processing, they offer businesses both operational efficiency and cost savings. EBPP simplifies billing management through automation, streamlining the biller’s operations to cut down on both time and labor. Going paperless also reduces billing costs by as much as 90%, including the expenses associated with printing and postage. Electronic systems eliminate the headache of bounced checks, and the option of autopay means no more missed payments, reducing the chance of lost revenue and the need to chase after unpaid bills. The outcome is improved cash flow predictability for billing companies.

90%

Cost savings of switching from paper to electronic billing

EBPP improves customer satisfaction.

EBPP also enhances the customer experience, building loyalty and increasing engagement. Electronic systems meet consumer preferences for digital payment options, mobile accessibility and real-time notifications. With 85% of Americans owning a smartphone, customers can make bill payments anytime, anywhere, at their convenience. Finally, digitized bill presentment integrates advanced security measures and real-time fraud detection mechanisms, significantly reducing the risks associated with traditional payment methods such as checks.

FIS and Oracle have teamed up to digitize utility bill payments.

As a case in point, FIS recently partnered with Oracle to eliminate paper checks from the utility billing process. In this collaboration, the FIS BillerIQ solution, an EBPP system, is enabling Oracle’s clients to deliver billions of utility customer bills electronically each year.

“The utility sector has historically used traditional payment methods,” Seamus Smith, group president of Automated Finance at FIS, said in a news release. “The inefficiencies and fraud risk of paper checks add to the challenges faced by the utility industry. However, with smart meters and digital payment technologies like mobile banking and eWallets, consumers now expect to pay bills digitally.”

With BillerIQ, utility companies can more easily deliver bills and accept digital payments for electricity, gas and water bills. The tool offers multiple payment options, FIS added, including automated clearing house (ACH), credit, debit, real-time pay and digital wallets.
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Putting EBPP Into Action

Switching to EBPP systems allows companies to achieve significant improvements in both operational efficiencies and customer satisfaction. By automating invoicing and payment processes, businesses can eliminate the time-consuming tasks associated with manual billing, such as printing, mailing and processing paper checks. Additionally, EBPP systems accelerate cash flow by enabling faster bill creation, distribution and payment acceptance.

Beyond operational benefits, EBPP also enhances customer satisfaction by offering the seamless and convenient payment experience consumers have come to expect from other areas of their digital lives. Customers can access bills electronically through secure portals, make payments instantly using various methods like credit cards or mobile wallets, and set up automated recurring payments. Furthermore, personalized billing options and self-service capabilities strengthen customer relationships by providing tailored experiences that meet individual needs. By simplifying the payment process and improving accessibility, companies can boost customer loyalty, reduce churn rates and align their services with evolving consumer preferences.

The more opportunities we create for our clients to engage with their customers in a one-stop digital portal, the better positioned they will be to drive revenue, improve cash flow and deliver exceptional service.”

Norm Marraccini
Senior Vice President, Products and Services, FIS