Ebook

Accelerate Cash Flow and Reduce Costs with Digital Payments

Accelerate Cash Flow and Reduce Costs with Digital Payments

The pandemic has shifted customers and businesses towards a touchless, digital payments society. Digital is emerging as the latest industry trend for sending customers request-to-pay reminders and giving them access to faster, more flexible payment options.

Digital payments are not only secure and convenient but also boost revenue by accepting payments in multiple forms and currencies. The need for digital payments is increasing because they help overcome payment cycle slowdowns associated with conventional modes such as paper checks.

Download this eBook to understand how digital payments:

  • Drive cost, cash flow and other benefits
  • Enhance customer experience

A glimpse into this eBook

Digital Payments, also known as Real Time Payments (RTP) or Frictionless Digital Payments, are payment transactions happening directly between buyer and seller through a direct, secure, internet connection on an Account to Account (A2A) basis, aligned with banking channels

Digital payments enable payments from buyer to seller via a wide range of mobile devices and in multiple currencies, through Internet on Account to Account (A2A) basis

The advantages of Digital Payments for B2C are obvious: Immediate payment on delivery via mobile devices. Extension of credit not required.

Reduced Direct Cost:

  • Reduces supplier’s lockbox processing & keypunch charges
    – fewer checks more electronic transfer (86% cost difference)
  • Reduces supplier’s credit & debit card processing fees
  • Lowers transaction fees with open banking trends

Lower Cash Application Cost:

  • Digital Payments convey more complete remittance information using common standards to increase auto-cash hit rates and application accuracy
  • Remit information conveyed with the payment vs 61% of ACH payments where remit info sent separately from payment
  • Reduces research time on customers’ vendor portal to find additional remit data
Digital Payments, Digital Invoicing, and a Customer Care (EIPP) Portal are most powerful when offered together

Digital (or electronic) invoicing is preferred and/or required by most customers today

A Customer EIPP Portal facilitates the end-to-end transaction:

  • Enabling the payment
  • Providing access to the invoices and statement of account
  • Providing digital assistant for 24×7 account enquiry

Payments can be made via a wide range of mobile devices

All Invoicing and payment data is captured

  • Enhanced Customer Experience
  • Increased Productivity in Cash Application
  • Reduced lockbox and bank processing costs
  • Increased Cash Flow & Reduced Past Due AR

Faster, more Secure Payments from Customers

  • Benefits of Digital Real Time Payments
    Improved Customer Experience/Satisfaction
  • Enhance customer experience
    Controlled Credit Risk
  • Greater Cash Flow
    Greater Cash Flow
  • Increased Revenue & Profit
    Increased Revenue & Profit
The convenience of Digital Payments appeals to small and medium size B2B customers & B2C customers. Many Small and Medium size businesses (SMB), do not usually perform administrative tasks during standard business hours. The ability to pay vendor invoices off-hours is a necessity for them, and often results in their paying invoices earlier. Stripe claims 75% of invoices it delivers on behalf of its clients are paid same day (with same day availability of funds)!

Payments can be made via a wide range of mobile devices, magnifying convenience

Access to funds received is usually same day vs multiple days of mail and clearing time for checks

Enhanced Customer Experience:

  • a large & growing number of customers prefer to pay via Digital payments for cost & convenience reasons. If you cannot accept Digital Payments they may seek a supplier who does
  • Accommodating customer preferences is a key element of Strategic AR Management
  • Digital payments provide quick, low cost access to multiple currencies

Your Suppliers will appreciate Digital Payments as well

Customer Overview: Global water treatment solutions provider with $5.6B in revenues . Global Shared Service Teams in India, Poland, and the USA.

digital paymentsDigital Payments Solution: Emagia AI-powered Customer Billing, Payment Portal, Digital Payments, & Cash Application. Deployed across 80 business units, 16,000 customers with multiple currencies from multiple countries.
Functionality includes straight-through processing of Digital Payments
(E-checks and Credit Cards), and customer logging of disputes.

Exponential Impact:

  • Accommodation of Customer Preferences for self-serve Digital Payments resulting in increased Customer Satisfaction
  • 92% auto-cash hit rate
  • 60% reduction in operations cost to process payments
  • Substantial reduction in past due AR to 15% of total AR, and exposure to Bad Debt
  • Digital Payments are faster, lower cost, and more secure than paper checks and many other forms of payment
  • They are preferred/demanded by many customers
  • They can improve Cash Flow and AR Asset Credit Risk
  • Digital Payments are necessary for Remote and/or Work From Home Payables operations

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