Companies that implement electronic invoice presentment and payment (EIPP) can achieve a positive ROI with as little as a 12-15 per cent adoption rate by supliers, according to new research from Giga Information Group.
The study used Giga's 'total economic impact' model to analyse cost, benefits, flexibility and risk of EIPP implementation to companies. Results show that provided certain conditions were met - such as the elimination of corresponding paper invoices and the implementation of customer self help - positive ROI is expected across the board for companies in a wide range of industries.
Penny Gillespie, Giga senior industry analyst, says: "We expect that most companies making an initial investment in EIPP will continue to see a positive return from the investment with payback within the first or second years."
The report reveals that while consumers have been slow to adopt electronic bill presentment and payment (EBPP), corporate payers have been quick to adopt EIPP due to cost savings resulting from the migration from paper to electronic delivery and improved efficiency within customer service, accounts receivable and marketing.
Gillespie continues: "A well-thought-out EIPP implementation reduces customer service calls relating to bills, decreases accounts receivable processing time and provides the opportunity to communicate consistently and personally with customers."
The EIPP market opportunity has not been wasted on the banking industry, with Citbank, JPMorgan Chase, Bank One and ABN Amro among the first to push products to corporate customers.