What streamlined payment processes mean for your business

When it comes to examining what’s happening in the corporate payment market, there’s one question that’s always top of mind: What does this mean for you?

Over the years, we’ve seen a move towards streamlined payment processes that help simplify workflows and enable you to do your job best.

Let’s explore.

The shift to digital

Corporate payment workflows are increasingly becoming digital. Whether it’s the platforms we use or the payment method of choice, more and more payments are incorporating some sort of digital element.

In our recent survey, we confirmed a few interesting facts: 

•  54.8 % of finance leaders are actively tracking new – often digital – payment methods to future-proof their operations. And what’s at the top of the list of payment methods currently being considered? Virtual cards.
  
  
• The biggest innovations that are in-demand right now – real-time payment processing, comprehensive data analytics and reporting, Integration with other business systems, AI and machine learning integration, and blockchain technology utilization – all point towards a strong desire for further digitalization.
  
  
• Automation is high on the agenda of businesses, with 47 % even claiming that a high degree of automation and integration is the reason why they stay loyal to their current corporate payment provider.  

The corporate payment industry is shifting to an automated, digital-first future. There are plenty of benefits to this, from streamlined processes to greater efficiencies. 

The reduction of friction  

In an ideal world, payments would not only be intuitive, but invisible. 

Speed and convenience are highly sought after in payment workflows but need to be balanced with compliance, reporting, and regulatory needs. Thankfully, the transaction itself has less friction than before. 

By saving your card details and tying it to your accounts, payments can be integrated in such a way that they become almost invisible. Payment prompts are replaced with more contextual commands and interaction directly with payment systems is often bypassed completely from the user side. 

The benefits are clear: 

Faster payments 

B2B transactions can be processed faster, reducing the time it takes for businesses to receive payments. 

Improved cash flow 

By receiving payments more quickly, businesses can improve their cash flow and better manage their finances. 

Increased efficiency 

Invisible payments can streamline B2B payment processes, reducing the time and resources needed to manage payments and invoices. 

Reduced errors 

The reduced reliance on manual data entry and the use of automation means less errors for B2B transactions. 

Better security 

Enhanced security features such as encryption help reduce the risk of fraud and unauthorized access to sensitive information. 

Improved supplier relationships 

Businesses can build better relationships with their suppliers, improving collaboration and avoiding payment disputes. 

Increases in payment security, acceptance in the B2B space, and innovations like open banking are likely to make invisible, frictionless, and thus streamlined payment processes even more common in the future. 

The drive for innovation 

In the corporate payment market, innovation is prevalent as businesses look to remain competitive.  

These technologies and initiatives come in many different forms – and each tackles a different point of friction in the payment process.  

Web3/Blockchain 

The blockchain has not yet entered the mainstream when it comes to corporate payments, but there is plenty it brings to the table: Decentralization reduces reliance on intermediaries and has the potential to speed up settlement times, immutable ledgers enable simpler reconciliation, and smart contracts allow for automated payment executions. 

AI 

AI is now in the spotlight, and businesses are exploring how to integrate and utilize its potential in their workflows. For payments, there are already several prominent use cases, including fraud detection, payment routing optimization, and automation in areas like error detection in invoicing, billing, and reconciliation. 

Open banking 

Open banking is the integration of payments into different third-party systems. It has the potential to directly enable more innovation within the financial products and services space. Some direct benefits for your payment processes would be enhanced security due to the inherent protections of the open banking standard, as well as more seamless integrations between systems through the use of APIs. 

Real-time payments 

The benefit of real-time payment is obvious: Instant settlement of your payments. This helps with cashflow and liquidity but can also have implications elsewhere. Consider the reduced lag throughout your payment operations, for example. 

Thanks to innovations like these, it’s becoming simpler to automate, consolidate, and integrate payments throughout the organization. The result is a leaner process that drives efficiency. 

What this means for you

For businesses, the value proposition of a streamlined payment process is clear: Faster transactions, lower costs, and increased efficiency in payment workflows. 

But what does this all mean for you – the professional managing and making the payments?

When it comes down to it, you enjoy a much better payment experience – one that’s less complex and time intensive.  And with less time and effort being allocated towards overseeing and managing payments, you’re able to focus on other aspects of payments: 

• Strategy and analysis
  
  
• Data exploration
  
  
• Workflow optimization
  
  
• General competitiveness

Ultimately, the streamlining of the corporate payment process is beneficial to both businesses and professionals alike. In the future, it may even change the role of professionals involved in payment management, towards something more strategic and specialized. 

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