fears
Fraud is scaring off countless would-be internet shoppers who are
reluctant to expose banking details online. In response to consumer
fears, a Canadian technology developer is offering eBillme, an
online billpay solution that eliminates the need to disclose
sensitive personal details. Charles Davis
reports.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Online shoppers in the US can be forgiven if they are confused
about alternative payment options. It seems that a new option
arrives almost daily, each more hyped than the last, but they each
ask for something extra from the consumer, be it a token or a
separate account number. It’s not much to ask for online security,
but such extra steps have proven to be a detracting factor of
alternative payment forms.
Then along came eBillme, an online payments alternative to cards
that asks nothing extra of the consumer and leverages the existing
banking relationship in ways that other forms of payment have not.
If ever the promise of a payment technology met the hype, this
might very well be that moment.
eBillme – once known to the industry as Secure e-Bill – was created
to offer websites the option of payments with services that do not
require the shopper to provide credit or debit card information.
The idea is to provide an extra level of privacy and security for
online shoppers who need only enter a minimum of information to
make payment arrangements.
Keeping things simple
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe power of eBillme’s model lies in its simplicity: the product,
developed by payments technology company ModaSolutions of Ottawa,
Canada, enables customers to initiate payments to merchants through
their banks’ online bill pay sites. It does not offer credit, and
merchants don’t ship the products until the payments are
made.
When a shopper is ready to ‘check out’ with the merchandise, the
screen will present an eBillme option. By selecting eBillme, the
customer then sees the final invoice and types in his or her name
and e-mail address. That is the extent of an eBillme transaction:
no account numbers, no expiration dates, no sensitive financial
data exchange at all. And eBillme does not have to go from bank to
bank signing up partners: eBills issued by eBillme can be paid via
a computer at any US bank, credit union or bill pay portal that
offers online bill payment.
Immediately after checkout, the merchant sends a bill directly to
the customer via e-mail. The last step is for the shopper to log
into his own online banking platform and pay the eBill like any
other online bill.
ModaSolutions, which is linked to MasterCard International’s
remote payment and presentment service network, receives notice of
payment and notifies the merchant. Within two days, the merchant
receives guaranteed funds and can ship merchandise according to its
own policy.
Customer protection
ModaSolutions’ software also integrates with the merchant’s
back-end system, updating its shipping and accounting servers. With
returns, customers deal directly with the merchant, though eBillme
can process refunds. Merchants pay ModaSolutions a 1 percent to 1.5
percent fee.
Merchants add eBillme to their existing shopping web pages using
ModaSolutions’ web service, which integrate with the ModaSolutions
eBillme gateway. eBillme can also be integrated seamlessly with
existing backend systems. The merchant website can be hosted from
any location on any platform, and accessed securely via
ModaSolutions’ hosted service.
eBillme offers a comprehensive set of customer protection offerings
as well, including a low-price guarantee, money-back satisfaction
guarantees and protection from loss, theft or damage during
shipping.
To grow the system, ModaSolutions has struck deals with merchants
to promote its service on their home pages. eBillme is featured on
the home pages of such merchants as TigerDirect and ToolKing.com.
The latest merchants to join eBillme, in time for this year’s
holiday shopping, include GiftCards.com, LuggagePoint.com,
PCUniverse.com, ShoppersChoice.com, WirelessEmporium.com and
CellsWholesale.com.
Consumers are increasingly aware of the services, which gained
widespread awareness among internet households, according to a
recent research study by consultancy Synergistics Research. It
found a majority of US internet households are aware of these types
of services: six in ten are aware of Bill Me Later and more than
four in ten of eBillme. Overall, about one-quarter of internet
households have actually used one of these online payment services,
the study found. Use of Bill Me Later was reported by one-fifth of
respondents and about one-tenth say they have used eBillme.
Couple that added awareness with the fact that research company
Forrester’s data shows that close to 30 percent of Americans who
browse online will not make purchases due to credit card security
concerns, and eBillme’s target market comes clear: the more online
the bank relationship, the better the e-commerce customer.
Online big spenders
ModaSolution’s own research confirms the link between heavy online
shoppers and online banking use: those who described themselves as
heavy online shoppers spend 34 percent more when shopping online
than other households. The total e-commerce average amount spent
among online bankers (defined as those engaged in online banking in
each of the previous six months) was $1,060, more than twice the
e-commerce average ($488).
“Consumers are realising the benefits of online banking – security,
convenience and speed – and are discovering that these benefits can
also apply to e-commerce if retailers offer online banking payment
alternatives,” said Jim Okamura, senior partner of JC Williams
Group, which conducted the survey for ModaSolutions. “Consumers are
now comfortable and tech-savvy enough to shop online in addition to
paying bills and transferring funds. And as more consumers
regularly engage in both online banking and e-commerce, we expect
this intersection to continue growing with profitable
results.”
The research also showed that 80 percent of respondents indicated
that the availability of a “safe and secure online payment option”
was the most important factor when shopping online. Considering
that 50 percent of US internet households made at least one bill
payment online in the past six months at their primary financial
institution or bill payment portal, eBillme is an inspired idea and
one that could very well alter the online payments landscape.
