Denver-based payment services giant First Data Corp. is
acquiring E Commerce Group Inc. (ECG), an electronic bill payment and
presentment company based in New York City.
Privately held ECG developed and markets
Speedpay, a proprietary technology that allows companies to receive
electronic bill payments through multiple sources including call centers,
automated voice response units and the Internet.
First Data said the e-bill company will be
operated as a part of its Western Union family of businesses.
Financial terms were not disclosed.
First Data said the acquisition is in line with its goal for Western Union to
expand into new markets and businesses through strategic acquisitions, and
complements the company’s current products and services, specifically the
suite of bill payment services offered to commercial clients.
ECG’s management team, including founder and CEO Darren Manelski, will remain
in place.
Meanwhile, Gartner Inc. released
a new report today saying that e-billing is quickly being adopted as the
preferred way to send bills and collect payments.
The average large U.S.-based company sending invoices to businesses over the
Internet can save at least $5.7 million per year, while the average large
company sending invoices to consumers via e-billing can save at least $13.1
million per year, Gartner said its research shows.
In the B2B world, ROI can be achieved when just 2.3 percent of bills are
viewed and paid over the Internet, Gartner said. B2C billers are able to
achieve ROI with as little as a 9 percent adoption rate.
First Data Snaps Up an E-Bill Outfit
