Intro on Payment Automation
Payment automation is a solution used by businesses to make ACH, check, wire transfers, and virtual card payments to suppliers. The process is done by verifying the account data and paying the suppliers as well. Payment automation is designed to speed up the payment process while also reducing the chance of human error through automated processes.
The Scope of Payments Automation:
Payment Automation can include allowing vendors self-service supplier portals for entering their information into your supplier database. The payments process can include validating invoices against contract terms, not just paying them.
To take advantage of many of the benefits whilst avoiding the commitment to a complete change, companies should look for automation to support specific payments processes like:
- Invoice management: Receive invoices electronically instead of paper, or use an image capture process to automatically convert paper invoices to images and extract the necessary fields to match to purchase orders.
- Approvals workflow: Automatically route invoices to the appropriate managers, including reminders and escalations when approval is delayed and payment due dates are approaching.
- E-payments: Make payments electronically to eliminate paper check expenses.
- Account reconciliation: Balance the account payables subledger and general ledger through electronic downloads of transaction details.
- Reports to management: Produce monthly reports and analyze payments data, flow data through to corporate ERP applications, and automatically track metrics.
The Rising Trend of Automated Payments in Metros Across Different Countries:
Companies that automate their payments process gain numerous benefits that help the entire business, optimizing your payments process means the business runs better and has more flexibility in making strategic business decisions. For many companies, though, a process like that may not be practical to implement such major change straight away.
Fintech & Their Influence
The B2B payment landscape is changing dramatically as the number of B2B payments continues to rise. Payment automation has the promising potential that lies in reducing manual and repetitive labor for financial professionals, and is a major focus for FinTech giants.
Automation will greatly reduce the amount of labor-intensive activities needed to facilitate payment by speeding up procedures and reducing the amount of time spent on them. With the rapid evolution of payment systems, improved payment technology is rapidly replacing antiquated and obsolete methods, and accounts payable automated solutions are springing up all over the place. B2B payment interactions have long been a source of annoyance, lagging behind consumer payment technology.
The Future of Metro Payment Automation:
Automation reduces the risk of paying inaccurate or duplicate invoices by comparing the invoices to other data sources. Invoices can be automatically matched against purchase orders and receipts to validate amounts, and duplicate invoices—whether containing a duplicate invoice number or a duplicate transaction—can be automatically rejected, Reduces costs to process payment, can help companies analyze their spending and identify areas that need improvement. Data is always up-to-date, providing real-time insight that supports business decisions, payments are made on time and avoid late penalties.