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In an era of rapid digital transformation, bill payments systems are emerging as critical infrastructure for inclusive financial ecosystems. India’s Bharat Connect (BBPS) platform, conceptualised by the Reserve Bank of India (RBI) and operated by NPCI Bharat BillPay Limited, a wholly owned subsidiary of the National Payments Corporation of India (NPCI), exemplifies a secure, scalable, and interoperable solution that simplifies online bill payments and enhances consumer convenience. With over 715 million transactions in FY25 Q3 alone, its success illustrates the power of government-backed, unified platforms. This report, a collaboration between Grant Thornton Bharat and NPCI Bharat BillPay Limited, explores global developments in bill payment systems, drawing lessons from India’s model to chart a path toward efficiency, inclusion, and innovation.
Across the globe, bill payments systems are undergoing major evolution driven by real time payments (RTP), mobile wallets, and centralised platforms. Countries like India (Bharat Connect), Australia (BPAY), and Saudi Arabia (SADAD) have pioneered national platforms offering multi-channel, secure access for recurring payments. Developed markets such as the US and Canada rely on direct debit and online banking, whereas emerging economies leverage mobile-first solutions. China leads with Alipay and WeChat Pay, offering QR-based seamless utility payments.
Key trends include automated recurring payments, integration with open banking APIs, and expansion into new sectors like education and subscriptions. Governments across Southeast Asia and the Middle East are actively developing interoperable systems to drive adoption and reduce cash dependency. While regulation and consumer behaviour vary widely, the movement toward consolidated digital ecosystems is universal, as users demand faster, more convenient, and secure ways to manage bills.
Bill payments cover a diverse set of recurring financial obligations—utilities, telecom, finance, housing, education, and government fees. Countries with mature digital ecosystems have developed structured digital solutions across most of these verticals, while others remain reliant on cash or fragmented digital interfaces.
Three primary operational models define bill payment systems: Direct Biller-to-Customer (DBC), Aggregator-led, and Central Switch-based. The DBC model offers billers full control but lacks scale and convenience. Aggregator-led models improve reach but often limit data ownership and branding for billers. The Central Switch model—seen in Bharat Connect, BPAY, and SADAD—balances compliance, security, and scalability by connecting multiple parties under a regulated, interoperable framework.
| Model | Customer reach | Customer convenience | Cost to biller | Control and branding | Data access | Compliance burden |
|---|---|---|---|---|---|---|
|
Direct biller-to-customer
|
Limited
|
Low
|
High
|
High
|
Full
|
Low
|
|
Biller-to-aggregator-to-collector
|
Wide
|
Moderate
|
Moderate
|
Limited
|
Partial
|
High
|
|
Central
switch |
Extensive
|
High
|
Low
|
Standardised
|
Restricted
|
Moderate
|
Countries with robust bill payments systems have designed specific regulations to govern participants and ensure secure, standardised practices. In India, NPCI’s Bharat Connect follows RBI’s guidelines to manage interoperability, dispute resolution, and grievance redressal. Similarly, Australia’s BPAY operates under Australian Payments Plus (AP+), and Saudi Arabia’s SADAD under SAMA.
Globally, however, most countries still lack dedicated regulatory frameworks for bill payments systems, relying instead on general digital payment or banking laws. As adoption accelerates, we expect an increasing focus on frameworks to govern onboarding, biller compliance, transaction routing, and cross-border interoperability. India’s structured approach offers a potential blueprint for emerging markets.
This will provide a comprehensive overview of the current bill payment ecosystem and aid in formulating a strategy for digital bill payments.
This will provide a framework for policy measures and a toolkit for designing an implementation plan.
Unified systems scaled across bill payment categories, enhancing efficiency, savings, security, and consumer convenience.
Centralised bill payments systems like Bharat Connect deliver efficiency, trust, and inclusion at scale. By integrating billers, aggregators, and payment service providers through a single interface, these platforms reduce duplication, accelerate settlements, and simplify user experiences. Bharat Connect alone processes over a billion transactions annually and is expanding across categories and geographies.
Countries aiming to replicate this success must assess their biller readiness, customer payment behaviours, and regulatory environment. A phased approach—starting with digitising utilities and telecom bills—can help lay the foundation. Policy support, API-based onboarding, real-time reconciliation, and transparent dispute resolution mechanisms are critical. Beyond cost reduction, centralised systems promote financial transparency, reduce tax evasion, and improve economic efficiency. The model shows promise not just for domestic payments, but also for scalable cross-border bill settlements.
As bill payments systems evolve, the next wave of innovation will centre around embedded finance, AI-driven customer service, and advanced fraud detection. Centralised infrastructures will likely expand to accommodate cross-border transactions and ESG-linked billing. Technology service providers will play an increasingly vital role, helping governments and enterprises modernise infrastructure rapidly.
Ultimately, the future lies in creating digital ecosystems that are inclusive, scalable, and in real time, where bill payments become invisible, intuitive, and intelligent. India’s experience, and that of other pioneering countries, offers a compelling path forward for global economies ready to leapfrog legacy systems.
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