Tom,
I think that many people fail to remember that bill payment and bill presentment are two distinct functions. Bill presentment is actually a glorified e-mail with graphics or tables to emulate an actual bill. However, e-mail is not a secured transmission on most networks and the actual delivery is best done on an intranet(given the customer's delivery request). In providing that service, the EBPP provider must be able not only to send the bill to the customer's desired site, but also insure to the customer that a high level of confidentially and security is involved. This is why not just anybody can get into the business.
The payment system in a "pay anyone" model is where the real barrier to entry exist. No one else that I am currently aware has a proven "pay anyone" model and even our main rival, TP, will not be up and running through Citi for several months. This gives CKFR a real leg up. But, a PAY ANYONE model is no good if you cannot couple it with a proven customer service offering. The CUSTOMER is not going to understand or be tolerant in a situation where a payment dispute arises and there is NO ONE source that he or she can go to for an answer. If customer service is not a part of the equation, then the entire process breaksdown.
Billers, financial institutions, and consumers want a simple, concise method to adopt for the ease and surity of bill presentment and payment in the electronic world. CKFR's current offering appears to have all of the necessary ingredients. As we see the rollout of the trend setters such as AT&T, American Express, MCIWorldcom, the Baby Bells, and many others in the coming months, I believe that the business case will become very clear; customer choice and control of not only how and where the bill is presented, but when and through whom the bill is paid will lead to CKFR as the "implementor of choice". This may hopefully drive many of the financial institutions to stop trying to defend their payment system, which they covet, and start to focus on the customer who they must serve or loose to a competitor.
CKFR offers a three-legged stool approach in its business model - Payment, Presentment, and Customer Service. This package and the proper execution of the service will win out with the IT people in the bill presentment and bill payment community, solidifying the market leadership and value-added proposition of CKFR's service. That will create a true barrier-to-entry. I just hope we are all patient enough to watch this process take place.
Best of Luck,
Bob |
