What is a key role of a Bill Payment Provider (BPP)?

A Bill Payment Provider (BPP) primarily serves the fundamental role of processing payments received on behalf of billers. By handling various types of transactions, BPPs facilitate the seamless transfer of funds from consumers to service providers, making it easier for customers to settle their bills accurately and on time. This processing function is central to the operations of a BPP, as it ensures that transactions are completed efficiently and securely, benefiting both consumers and billers.

While preventing customers from missing payment deadlines or encouraging early payments through incentives can certainly be advantageous features or services provided by some BPPs, they do not encapsulate the core responsibility of the provider. Similarly, designing billing software, while important, falls outside the primary role of BPPs, which is focused on transaction processing and managing payments rather than the creation of billing solutions.