In 1785, a man named Evans invented the first fully automated industrial process – a water-powered flour mill. The long march of automation to the present day finds that automation is shaping new solutions to cash management problems during difficult economic times.

Among other widely reported topics, the latest Global B2B payments playbook, produced in collaboration with B2B Worldpay payments, focuses on the frictions of international B2B payments and how digital invoicing and payments make it easier to move B2B funds across borders.

“Recent research from PYMNTS found that 64% of B2B businesses are moving away from physical invoices, for example, while other reports show technologies to help businesses better categorize and store data, such as tools automation, also arouse greater interest among companies, “by the new Game book.

Adding that “companies are starting to assess how their B2B payment processes can adapt to their changing needs as well as those of their customers,” the Playbook highlights what should now be obvious: “Many can no longer take on the tasks. the tedious and costly friction that comes with more traditional B2B payment methods such as wire transfers.

Cash management moving in virtual directions

Since we can’t really define the current period as ‘post-pandemic’ with any certainty, companies continue to optimize back office systems relying on agile FinTech tools, in search of true End-to-end accounting configured for the changing payment pitch of 2021.

Noting that “virtual cards are attracting more interest from businesses [and] could eventually become a dominant B2B payment method ”, the new Global B2B payments playbook indicates that significant modernization is now accelerating in the accounts payable (AP) and accounts receivable (AR) space as the next logical step in the evolution of financial automation.

According to the Playbook, automation and artificial intelligence (AI) “can speed up domestic and cross-border B2B payment processes by reducing the time and resources required to finalize attached documents and categorize relevant payment data. Incorporating some degree of automation into their Accounts Payable (AP) and Accounts Receivable (AR) processes can also help businesses increase transparency for merchants, allowing merchants to better monitor their trade flows. Treasury.

Researchers found that 65% and 54% of small and large businesses, respectively, view manual payments as error-laden and time-consuming. Automation solves these problems.

B2B, Merger of consumer payment experiences

With expectations for corporate payments being influenced by consumer-centric peer-to-peer (P2P) payments and associated innovations, the Global B2B payments playbook states that “an important aspect of building a competitive business is being able to send cross-border payments as quickly as domestic payments. Using a global third-party payment provider could help businesses effectively circumvent this challenge. “

“Late payments are causing frustration among businesses during the pandemic,” according to the Game book. “Payment players are therefore studying ways to modernize the AP and AR processes attached to B2B cash management,” an obstacle that becomes more difficult when dealing in international currencies and in an increasingly strict global regulatory climate.

As the Game book Note, “A new report has found that order entry errors alone can hurt companies’ profitability, with 74% of manufacturers and 81% of distributors saying these problems can reduce profitability by up to 25%. He also reported that manual data entry errors occur daily for 7% of B2B companies.

Learn more about B2B payments:

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NEW PYMNTS DATA: DIGITAL BANKING STUDY – THE BATTLE OF BREWING FOR WHERE WE WILL BANK

On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.


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