Introduction To BBPS
The BBPS is an integrated platform that connects banks and non-bank financial corporation in bill aggregation business like payment service providers, billers, retail bill outlets and more.
NPCI is the authorized Bharat Bill Payment Central Unit (BBPCU) that undertakes clearing and settlement activities related to the transactions within BBPS.
Who Can Become A Part Of BBPS
Bharat Bill Pay Agent-Institutions
Once individual get listed as an official Bharat BillPay Agent-institutions of Bharat BillPay, consumers will love the easiness in bill payments. Also, it offers a great prospect to improve the trust of consumers. BBPS enables to form strong customer relationships and empowers a business network.
Benefits of being Bharat Bill Pay Agent-Institutions:
- Single point access to all Billers on all payment channels (digital and physical
- Potential to offer new Value Added Services like Online Presentment
- Expand reach to customers through various channels- both digital and physical
- Revenue Opportunity and low cost/transactions
- Timely and Guaranteed Settlement
- Admin Portal- Canvas for Consumer Complaint & Dispute Management
- Easier Reconciliation
- Standard Interface and Consolidated Reports
With Bharat Bill Payment System (BBPS), you can receive your bills quicker as well as tracking every payment. It delivers a broader reach via multiple channels of payment and aids to earn the trust of consumers.
As a BBPS Biller, Enjoy Easier Integration
- Lower Capex and Opex due to reduced investments.
- Broader reach via multiple channels.
- Enhanced liquidity position because of quicker payment receiving.
- No need to integrate with more than one BBPOUs.
- Fewer entry barriers for small billers or ones restricted to small geo locations.
- BBPS assures payment info and different payment transactions settlement at selected intervals via official entities. This confirms that there is no separate requirement for bank assurance.
- A responsive grievance redressal system (CMS and DMS) to make the system more responsive as well as progressively free from errors.
- Adequate business and technical MIS that may assist in evaluating customer behavior and system performance of biller partners.
Pay from anywhere, anytime through India with great ease and safe payments. No more troubles to manage each bill individually.
- Consumers can pay bills of any biller at a single point with its broad agent network leading easy accessibility. (Online as well as offline- Branches, BCs, customer service points, retail agents of aggregators, ATMs (Automated Teller Machine), Kiosks etc.)
- With BBPS, customers no longer need to stand in long queues.
- Wider biller options are available on a single platform.
- Consumers can pay through multiple modes (Cash, Debit/Credit Cards, Prepaid instruments containing wallets and other e-payment choices like Net Banking, IMPS and NEFT etc.)
Growth Of BBPS (Bharat Bill Payment System)
The BBPS (Bharat Bill Payment System) almost doubled the number of bills paid via the platform in Dec 2017 to 19 million transactions from 10 million in April, when the pilot was launched.
Professional services firm KPMG has highlighted this in a BBPS report, which is flaunted to be a one-stop bill payment solution for Indian customers, the preliminary successes of the platform and it’s potentially specified that it has integrated 60 billers already.
NPCI data advises that 99 percent of the transactions were positive, and only 0.14% doubtful.
The report represents that in terms of volume the share of transactions done for telecom postpaid bills stands at 46.8%, followed by DTH (direct-to-home) at 32% and electricity at 19.4%. In terms of the value of bills paid, electricity was ahead of all other sectors, at 54.7%.
Future Scope Of Bharat Bill Payment System
The value of bills paid on the platform flown almost 46% to Rs. 2,690 crore in Dec from Rs. 1,843 crore in April. This was still a quite small share of the entire market of bill payments, which is predictable to raise to Rs 9.4 lakh crore by the end of 2020 from Rs 5.8 lakh crore in 2016.
As per the report on Livemint, AR Ramesh, the chief project officer of BBPS has said that the NPCI is also seeing to receive approvals from the RBI for other categories of periodic payments like fee payments, once-a-month installments and mutual fund payments which can ultimately be provided on the Bharat Bill Payment System.
The Financial Express also reported that at a later stage, NPCI will look at adding small-value suppliers who raise bills of a recurring nature, subject to regulatory approvals for on-boarding such billers, Ramesh said.
According to Ramesh, the objective has been to rapidly enhance the biller base to enable easier bill payment for consumers under one single ecosystem. Payments through BBPS may be made using cash, transfer cheques, and electronic modes. Bill aggregators and banks, which function as operating units, carry out these transactions for the customers.
In February, consulting firm KPMG had said in a report on BBPS that telecom postpaid bills constituted a chunky 47% of BBPS transactions in December 2017, followed by DTH bills, which accounted for another 32%.
Technology For BBPS
In order to carry out the BBPS effectively, you need a strong network of agents across multiple areas in the region you are looking to serve. In order to manage your network and to ensure swift transactions for end customers, you need the technology that is not only fast but also user-friendly and meets your conditions for business. A BBPS platform developer will help you with this.
BBPS is here to stay for long as there are several unbanked populations in India that still need to avail the services of third-party to pay their bills. Businesses still have a huge opportunity to reach this population with effective services with strong networking and robust technology.
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