AGENDA

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AGENDA
eBill NZs first consolidated Internet Billing
Solution
A CASE STUDY
How we got here
What we have learnt
EBPP Options for your organisation and customers
Benefits of Thick vs Thin approaches
Enhancing CRM through Internet Billing
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How we got here The journey to electronic bill
presentment and payment

• New Zealand Post - New Zealands trusted neutral
  agent
• Challenged existing norms and agreed a path
  forward (substitution)
• Agreed payments data collection is core
• Determined Billers expectations
• Determined Consumer expectations
• Analysed Research
• Selected an international best practice partner.

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How we got here What Billers Told Us...

• Need to align collection strategies
• Need to reduce collection costs
• Its difficult to remove existing collection
  channels
• Want to increase on time payments
• Want to encourage preferred customer payment
  behaviour (use of cheaper collection channels)
• Want to have on-line relationships
• Want to own and manage customer.

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How we got here What Consumers Told Us

• Impartiality, trust
• Simplicity
• Convenient
• Hassle Free
• (Control, harmony and Freedom seekers)
• Inexpensive (minimal bank fees)

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How we got here Research Conclusions...

• Billers want a Migration Agent not a
• Collection Agent
• Consumers increasingly want simply technology
  solutions for bill payment
• Consumers want to pay at one web site
• NZ Post must diversify collection channels in
  order to satisfy billers and consumers while
  maintaining a position as NZs most preferred
  collection agent
• An international partner would be required.

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How we got here Partners and best practice

• CheckFrees leadership in EBPP provided valuable
  insights and knowledge
• Clear global market leadership
• More capability and market penetration in BSP and
  CSP roles
• Accelerates international strategies and
  opportunities
• Industry growth realised
• Proprietary solutions become isolated -
  interoperability will be important.

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How we got here The journey to electronic bill
presentment and payment...

• Evolved the technology solution for international
  deployment
• Secured pilot ebillers, proving the technology
• Personalised and productionised the eBill
  technology platform
• Launched and marketed the solution

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POST NO BILLS

• As requested by billers New Zealand Post
  committed to leading diversification and
  substitution of its traditional business, in
  order to align with Billers strategies.

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eBill Today
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eBill Today
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eBill Today
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eBill Today - Branding
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What weve learnt since implementation

• Consumers like
• Control of payments when and how much
• Notification of bills
• One place to receive, pay and file bills
• Simplicity of the service
• Access from any internet access point globally
• Perceived control.

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What weve learnt since implementation

• Consumers want
• More billers to increase convenience
• To pay any company
• Help to understand security
• To avoid other payment types
• On line Direct Debit Authority approval.

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What weve learnt since implementation

• Developing and maintaining an EBPP consolidation
  platform is very very expensive
• Billers and channel partners want to maintain
  branding throughout transaction
• Billers want non-exclusive agreements
• EBPP is a magnet for consumers
• Implementation is simple and misunderstood
• NZ Posts eBill-2 Model is Misunderstood by many.

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What weve learnt since implementation

• Transactions increase exponentially with the
  implementation of new billers
• 94 of bills are paid by due date
• 25 of bills are paid at least one week early
• 98 of bill value is paid by due date
• 24 of bill value is paid at least one week
  early.

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Weve discovered the BIG Issues!

• BSPs, Banks and some billers found the initial
  eBill model invasive
• BSPs, Banks and Billers want to maintain
  traditional business roles and want NZ Post to do
  likewise - bill production, payment processing,
  customer management, bill delivery and collection
  of customer payment instructions respectively.

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So whats the new eBill-2 Model?

• An Intel Inside Model - Powered by NZ Post,
  branded by you.
• Billers and Channel Partners can re-brand eBill
  and re-present the service
• Billers select Bank to settle eBill funds
• Focuses on ensuring BSPs, Banks, Billers and NZ
  Post act in traditional business roles.

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Retaining the Physical Model -
Biller
Postal Co
Consumer
NZ Post
Bank
Biller
BSP
Billing Data
Bill Production
Pass to Delivery Agent
Delivers Consumers Bill to consolidation
Site (,mailbox / PC)
Receipts Bill / Bill Summary
Bill Detail made available to Consumer (Thin
Model)
Passes Payment Instruction to Delivery Agent (NZ
Post)
Delivers Payment Instruction to Payment Processor
Payment Instruction Processed
Payment Data Reconciled
Bill Detail Made available to Consumer (Thick
Model)
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The eBill-2 Model
Biller A
Internet
Biller B
Banks
BSP 1
Biller C
Portals
eBill
Biller D
Billers
Biller E
Biller F
www.eBill
BSP 2
Biller G
Biller H
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How does eBill-2 Support Billers?

• Enables Billers to integrate eBill into their web
  sites without risking brand dilution.
• EBPP becomes a function of the billers web site
• Billers maintain customer relationships
• Reduced consumer compliance costs
• on top of
• Improved CRM
• Reduced Costs.

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eBilling Considerations

• For Billers
• Non-exclusive agreements are a must
• EBPP should enable personalised relationships
• Branding and consumer relationships should not be
  diminished in any way
• Ensure your EBPP service provider is neutral and
  trusted by consumers
• Biller direct sites may not attract consumers who
  have stated they want one consolidation site

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eBill Considerations

• For your customer
• Must be easy to join
• Provides control and convenience
• Provides easy access with prompted action
• No restriction on bank affiliation
• Employ a neutral and trusted EBPP supplier.

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Enhancing CRM through Internet Billing

• New Zealand Post eBill
• Provides a link to your web-site front door and a
  regular reason for visiting
• Helps build strong online relationships with
  customers
• Offers the opportunity to improve customers
  retention through innovation and online Customer
  Care Programmes
• Enables cross selling and upselling of products.

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Value adds - wheres EBPP going?

• Upselling of traditional services
• Promotion of special offers and benefits
• Participation in online loyalty programmes
• Personalised bill content and display
• Online bill interrogation/query
• Pre-payment and re-charge payment options

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Getting Started - what you can expect

• Implementation costs as low as 8,600
• Round trip transaction costs lower than RP
• Improved payment times
• Improved customer loyalty
• Reduced call centre traffic
• to learn a lot early in turn enabling you to be
  ready for the hockey stick.

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Value adds - wheres EBPP going?

• Lets see how it can look and just how
  relationships with customers can be created

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