InvoiceCloud, a leading solution for digital bill payment services, today announced a significant enhancement to its Online Bank Direct (OBD) solution, enabling billers to automatically separate payments based on the paid invoice type, simplifying deposits for their customers.
This revolutionary feature streamlines cash application and reconciliation processes, leading to faster access to funds and improved financial visibility for both billers and their customers.
“Financial institution Bill Pay systems remain a dominant force in online bill payments,” said Steve Schult, Senior Vice President, Products at InvoiceCloud. “Our new enhancement caters to this reality by offering unparalleled deposit control, significantly reducing manual effort and accelerating cash flow.”
InvoiceCloud's groundbreaking State of Online Payments survey research, conducted in collaboration with Regina Corso Consulting, revealed valuable insights into the continued relevance of financial institution bill pay:
- 43% of survey respondents reported that their online bills are paid through financial institution bill pay systems.
- 17% of survey respondents reported that they prefer to pay their bills directly on their financial institution's platform. This preference is just 3% behind the percentage of respondents who reported that they prefer to pay their bills directly on the biller's website.
- Survey respondents who are members of households with higher-than-average annual income demonstrated a stronger preference for financial institution bill pay systems.
Prior to this enhancement, OBD consolidated all payments into a single deposit, posing challenges for billers with diverse invoice types. Now, payments are automatically categorized and deposited into corresponding bank accounts, based on pre-defined rules configured by the biller. This eliminates the need for manual sorting and allocation, resulting in:
- Faster Reconciliations: Billers can easily match payments to invoices, saving valuable time and resources.
- Improved Cash Application: Funds are immediately directed to the appropriate accounts, accelerating access to working capital.
- Enhanced Efficiency: Streamlined processes free up employees to focus on higher-value tasks.
- Greater Insight: Granular deposit data provides valuable insights into customer payment behavior and preferences.