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How do online bill payment companies make revenue?

Updated: 1/13/2023
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Harikrishnang

Lvl 1
16y ago

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The transactors have to pay very small almost a hidden fee. This money piles up and the more transactions by the more people, the more money the company makes. Every moment hundred of people send money via PayPal, thus Paypal is a very rich company.

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16y ago
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Q: How do online bill payment companies make revenue?
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What is online bill payment?

Simply put, using the bill companies website, you pay your bill via your computer by giving them your bank account numbers.


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Electricity bill online payment is useful in paying your monthly utility bill online. It saves paper, stamps, and gets your bill paid in a more timely manner than waiting on it to go through the mail service.


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Saving by Paying an Electricity Bill Online?

Many electric companies are now offering their customers options that allow them to pay their electricity bills online. Customers who choose to pay their electricity bills online can avoid paying for snail mail postage and avoid incurring late fees on tardy payments. Payment options vary for different electric companies, but many offer the option of making one-time payments online or scheduling regular payments through direct withdrawals from the consumers bank account and other electronic bill payment services. Consumers who take advantage of online bill payment options save postage from mailing their bill. Consumers who forget payments avoid accruing late fees by scheduling regular payments in advance.


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Making an online payment of electricity bill charges is simple. It is also secure and can result in saving money for a customer in the long run by saving expenses usually made on stamps. Most electricity service providers have websites with a button for online bill payment. All the customer has to do is register his electricity account and provide payment information. This information can be a bank account number from which the payment will come or it can be a credit card number. Some electric service providers allow either way to make an online payment of electricity bill charges.


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