Business Accounting and Payment System (BAPS)
Periodic recurring billings are a huge and ever-growing market worldwide. It is estimated to reach $67 billion worldwide by year-end 2020, including telephone, electricity, gas, water, and other utility services.US households receive approximately 6 to 17 bills per month, generating over $15 billion recurring bills a year in the US alone. Precision Global Solution is going to tap into this lucrative market and business opportunity by launching electronic bill presentment and payment solution called Business Accounting and Payment System (BAPS).
This solution intend to enable businesses to provide interactive financial statements and bills to their customers via email and internet. The bill that business is going to present to their customers with the help of Precision Global Solution’s productwill retain the look and feel of the company's paper bill but is going to add the ability to initiate immediate payment from the customer's desktop. The BAPS will integrate with the customer's existing systems, and will allow the customer to retain control over proprietary customer databases. Essentially, the biller will outsource the technical components of EBPP, while retaining control over data and content. The company's solution will focus on the client's individual needs to enhance customer relationships, marketing and billing. All products will be tailored solutions to a given client.
The BAPS is going to offer a full service electronic bill presentment and payment solution for businesses with single or recurring billing cycle. BAPS will utilize data from a biller's existing system and create an enhanced online version of a customer's bill. In addition to electronic billing, BAPS strengthens direct marketing and customer care. The electronic bill is presented to a consumer as a bill from the biller, not from Precision Global Solutions. This customized bill will contain promotions and information chosen by the biller that are accessible through successive mouse clicks.It intends to provide value to the biller and end-user both equally.
The operations flow of the product will be designed to integrate smoothly with the biller's existing workflow. When customer is going to send billing information for the current cycle to BAPS, it is going to translate this billing information into its database and generate a customized electronic bill. End-user is going to have an ability to make the payment right from their email. As soon as the payment is received, BAPS is going to process the responses. For each approved payment, an automated clearing house (ACH) transaction is going to be submitted to Precision Global Solution's bank. Periodically, an execution report will be returned to Precision Global Solutions for reporting and regulatory reasons. At the end, Precision Global Solutions is going to compile the executed and fully funded transactions, and will send a reconciliation report which is going to be integrated directly into the customer’s system.
Companies spend on average a $1.50 per bill to send out a traditional paper bill due to paper, printing, postage and processing costs. Savings from EBPP can reach $1.90 per bill when all aspects of customer service, financing and billing costs are included.
Therefore, the potential for total savings is estimated to be between $15 billion to $28 billion annually depending on the type of the biller. Electronic Bill Presentment and Payment vendors, including Precision Global Solutions, will compete for a share of a market forecasted to reach $20 billion in the year 2020 and $30 billion in the year 2025.