To help trading partners collaborate on invoicing and payment generation and processing, a growing number of companies are adopting digital safes.

This can optimize transactions and reduce the work involved in sending, receiving and reconciling payment information, according to “Reimagining Business Payments,” a collaboration between PYMNTS and Billtrust. It can also ensure that payments arrive quickly and securely with payment data integrated directly into an accounts payable (AP) or enterprise resource planning (ERP) solution.

Get the report: Reinventing business payments

Adopt a digital safe

A digital vault captures all information that accompanies and within transactions, connects to websites and ensures cards are eligible for the best possible rates, Billtrust CEO Flint Lane told PYMNTS in an interview. in February.

Read more: Finally, the check isn’t “in the mail”: digital safes tackle the mail floating problem of B2B payments

The boxes combine Automated Clearing House (ACH) payments with installment details and send them back to the business in a single file that enterprise resource planning (ERP) systems can digest. Cloud-based platforms also free businesses from having to create their own Accounts Receivable (AR) systems.

“Any large-scale business will need a digital vault even if they don’t know it very well,” Lane said.

Transform invoicing, payments

Using a digital safe as a central point for collecting and distributing incoming payments can drive five transformative changes, according to the report:

Improved customer satisfaction. A digital safe can give a customer more flexibility in remitting electronic payments, whether through email, AP systems integration, or an online portal.

Reduction of manual tasks. It can automate many tasks that would traditionally be handled by accountants and other AR personnel. Tasks that were once paper-based, such as invoicing, check writing, and budget reconciliation, can be automated, freeing up staff to tackle higher-value tasks.

Increase flexibility. Digitizing payment processes helps large enterprises and small and medium-sized enterprises (SMEs) simplify workflows, control costs, speed transaction processing and reconciliation, eliminate manual paper-based processes, and offer valuable spend data and insights to optimize not only their own processes, but also those of their business partners.

Facilitate best practices. A more transparent checkout process improves visibility into working capital and the customer information it collects, such as buying habits and payment behaviors, which can provide valuable insights for future interactions.

Make problems easier to solve. They can help manage “lost” or partial payments by ensuring that remittance data travels with the payment, reducing the number of blocked transactions. It also makes bookkeeping easier, as payment information is passed directly to a company’s enterprise resource planning (ERP) system or AR solution.

Optimize both sides of transactions

As the world becomes more connected and geographic proximity becomes less of a requirement for doing business, business success depends on digitizing processes such as invoicing and payments so that payments can be made and received on long distances safely and efficiently.

The status quo of slower payments and cash apps may be enough to inspire potential customers to go elsewhere.

Digital safes can help organizations not only track and accelerate AR and AP processes, but also optimize both sides of the payment transaction with their customers.

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