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The Global Electronic Bill Presentment and Payment (EBPP) market is projected to grow by 109% in market valuation between 2022 and 2030, reaching a valuation of US$ 26,614.0 million by 2030. The market is estimated to register a CAGR of 9.7% during the forecast period, 2022-2030.
The growing adoption of online e-payment platforms among customers and contactless payments in business-to-consumer marketplaces have helped increase the demand for EBPP services significantly in recent years. However, the large-scale use of checks and traditional bill payment methods (paper bills) in several developing and underdeveloped countries is one of the key challenges facing the market.
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Factors leading to the growing adoption of Electronic Bill Presentment and Payment (EBPP) services and solutions
The growing trust of billers and consumers in the transparency, convenience, flexibility, and timesaving offered by online transactions is driving the increased adoption of e-bill payment solutions. Furthermore, the rising penetration of smartphones and easy access to internet services increasing the popularity of e-payment options. According to the (Covid) Era of Rising Fintech (ERF) report, by Razorpay-a payment solution company the number of online transactions increased by 104% in 2021 from 2020, with the food and beverages sector being the largest contributor.
Rapid advancements in card payment technologies and the large-scale adoption of real-time payments, cryptocurrencies, and P2P mobile payments are making contactless payments a hit among customers, especially the young generation. Contactless payment options are also favored by e-commerce players. For instance, Amazon.com, Inc. a multinational e-commerce company, has pioneered a contactless, palm scanning PoS terminal known as Amazon One.
Current trends in the market
Technological advancements are making EBPP services increasingly convenient and accessible, leading to an increase in their demand globally. For instance, Bottomline Technologies offers several technology-driven applications featuring emerging digital banking technologies, including advanced cashiering, self-service customer engagement platforms, and reporting and compliance solutions.
Several market players have introduced solutions featuring AI functionalities and chatbots to make bill payments easier and faster.
Factors restraining market growth
Traditional bill payment methods like checks and paper bills continue to account for a large share of overall transactions in several developing and under-developed countries. Some consumers still prefer to have hard copies of bill payment receipts as customers are afraid of falling prey to data breaches and frauds using third-party websites for bill payments. However, large billers are slowly shifting to a consolidated EBPP model. Factors such as low internet penetration and frequent power outages in several developing and under-developed countries also hinder the smooth processing of e-bill payments.
Even before the onset of the COVID-19 pandemic, EBPP was rapidly emerging as one of the most promising alternatives to mobile operators and billers, specifically for businesses looking for novel solutions to minimize operational costs. However, the demand for EBPP solutions spiked during the COVID-19 pandemic. Factors such as the fear of contracting the infection by touching bills and receipts, and travel restrictions increased consumer preference for online payment channels and billing methods over offline channels. This led to an exponential growth in customer base and transaction volumes of EBPP billers.
EBPP Type Analysis
Based on the EBPP type, the biller-direct segment accounted for the highest share of 62.8% in 2021. The Biller-direct model offer advantages such as creative ways of notifying customers of a pending bill in a cost-effective manner. The model also provides a more reliable and efficient delivery mechanism for both bill delivery and payment receipts compared to traditional bill payment methods. The model helps billers to maintain direct contact with the customer, as the biller can control how the bill is presented through the website. The consolidated EBRP model held a 37.2% share of the market in 2021.
Bill Type Analysis
The phone bills segment helps the highest market share of 39.1% in 2021. More than 5 billion people, or around 63% of the world’s population, have access to internet services. According to the World Bank, mobile cellular subscriptions in the world were reported at 104 per 100 people in 2020.
Payment Channel Analysis
The mobile app and wallets segment is expected to grow with the highest CAGR of 10.1%. The segment accounted for the largest market share of 49.8% in 2021. User-friendly mobile wallets and apps have revolutionized the payments landscape in the last decade by enabling easy and fast payments without the need for physical credit and debit cards.
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The FMCG and F&B segment accounted for the highest market share of 17% in 2021. The HoReCa & QSRs segment is expected to register the highest CAGR of 10.8%. FMCG products are sold in large quantities and are regarded as a reliable source of revenue.
However, even before the COVID-19 pandemic, the hospitality industry had started witnessing a spike in online ordering and delivery. The global food delivery market is now worth US$ 150 billion, a threefold increase from 2017. Markets are dominated by third-party delivery platforms such as Uber-Eats and Door Dash. The major fast-food corporations have devised their own payments and billing solutions.
Although North America currently dominates the global market, accounting for a share of 41.4% in 2021, the Asia Pacific region shows immense growth potential throughout the forecast period. The Asia Pacific regional market is expected to register a robust CAGR of 10.2% during 2022-2030, thanks to strong government support for online payment platforms. For instance, in June 2022, the Reserve Bank of India announced that RuPay credit cards would be allowed to be linked with unified payment interface accounts.
In addition, the Chinese government has taken several initiatives to support card payments, working with card issuers and schemes. One such initiative was the elimination of the upper and lower interest rate caps on credit cards, beginning January 1, 2021. Previously, this ranged between 12.78% and 18.25%.
Strategic Outlook of Key Players:
List of Companies Profiled
The market features a monopolistic competitive landscape, with key players like PayPal, Inc., Fiserv, Inc., MasterCard, and Pagero AB collectively accounting for nearly 38.6% of the market. Major market players are adopting multi-channel strategies through investments and mergers and acquisitions to strengthen their hold in the market.
The Electronic Bill Presentment and Payment (EBPP) market is segmented into:
By EBPP Type
By Bill Type
By Payment Channel
|Market Size Value in 2021||US$ 11,805.5 Million|
|Expected Revenue in 2030||US$ 26,614.0 Million|
|Unit||Value (USD Mn)|
|Segments covered||By EBPP Type, By Bill Type, By Payment Channel, By Industry, By Region|
|Key Companies||ACI Worldwide Inc., Bottomline Technologies, Inc., Communications Data Group, Inc., CSG Systems International, Inc., CyberSource Corporation, ebpSource Limited (UK), Enterprise jBilling Software Ltd., FIS, Jack Henry & Associates, Inc., Jopari Solutions, Inc., SIX Payment Services Ltd., Sorriso Technologies, Inc., Striata, PayPal, Inc., Fiserv, Inc., MasterCard, Pagero AB|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Biller-Direct ERBP model is the most desired model adopted by billers and customers.
Phone bills are the most paid bills using the Electronic Bill Presentment and Payment (EBPP) systems.
Mobile apps and wallets are the most favored payment option among customers.
The market is expected to increase by 109% from 2022 to 2030, reaching a value of US$ 26,614.0 Mn in 2030.
Increasing adoption of contactless payment options and the growing ease & convenience of online transactions are two main factors driving the growth of the market.
Presence of traditional billing methods and inadequate digital payment infrastructure is hampering the growth of the market.
Asia-Pacific region is growing with the highest CAGR during the forecast period.
North America holds the highest market share in the Global Electronic Bill Presentment and Payment (EBPP) market, with the US as a leading country.
Government initiative for switching from paper billing to e-billing and boosting venture capital funding under the EBPP platform is likely to pave way for new opportunities for the market
EBPP Type, Bill Type, Payment Channel, and Industry are the different segments in the Global Electronic Bill Presentment and Payment (EBPP) market.
PayPal, Inc., Fiserv, Inc., MasterCard, and Pagero AB are some of the key players in the market.
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