45% of businesses see slow payments as a problem
Late payment frustrations are on the rise, prompting companies to upgrade their B2B transactions and other processes. Today, 45% of businesses rate slow payment turnaround times as one of their top issues, according to the “Next-Gen Digital Payments Report,” a collaboration between PYMNTS and Transcard.
Get the report: Next Generation Digital Payments Report
Chief Financial Officers (CFOs) and other payment professionals are reviewing their Accounts Payable (AP) and Accounts Receivable (AR) operations for innovation as the friction associated with manual processes increases.
The hunt is on to find solutions and technologies that can help streamline B2B payments, from automating historically heavy processes, such as invoicing or data collection, to finding newer and more fast.
Automate historically heavy processes
This is particularly important at a time when the growing demand for cross-border transactions adds complexity to these processes.
Read more: Consumers and SMEs gain comfort with cross-border payments
The integration of enterprise resource planning (ERP) systems and other tools allowing companies to manage their payments more carefully and the introduction of faster transaction methods such as account-to-account payments ( A2A) or integrated finance could help companies remove friction from their AP and AR processes. .
Integrated finance solutions leverage ERP systems and application programming interfaces (APIs) to integrate payment processes directly into customer or customer experiences, enabling transactions to be performed on mobile apps or sites, for example. Eighty-eight percent of entities already using integrated finance tools reported that they had been very successful in improving customer engagement. Looking closely at how these tools, when paired with ERP systems, could benefit them should be a priority for businesses today.
More and more companies are starting to pay more attention to the potential benefits of ERP systems in this regard. Data from PYMNTS revealed that 65% of companies with annual revenue between $25 million and $100 million said that their lack of access to an integrated ERP system prevented them from achieving their digitization goals.
Enable faster B2B payments
Businesses need to consider how they can combine ERP systems with emerging technologies such as machine learning (ML) and artificial intelligence (AI) as consumer and customer payment needs evolve. Enabling faster B2B payments is becoming a necessity for businesses that want to stay competitive, which means businesses need to quickly determine how best to upgrade their existing payment infrastructures to keep pace.
Keeping up with evolving partner and vendor payment needs is crucial for organizations as the future of work becomes both more virtual and more global. Cross-border payments represent a growing percentage of B2B transactions, meaning more businesses will need to consider issues such as changing exchange (FX) rates, international data privacy laws and compliance guidelines finance in their payment processes.
Being able to collect and manage all of this information in a single repository while facilitating near-instant payments could give businesses a key advantage over others as they seek to compete in the expanding global arena.