5 Reasons Buyers Are Clamoring for PAYBOX™

Tuesday, June 10, 2014

So why would buyers want to use PAYBOX®?

That was one of the questions that curious bankers asked Direct Insite during a demonstration of its new Reverse Lockbox solution at the IOFM Payments Summit last week in Baltimore.

PAYBOX® is an Accounts Receivable automation solution especially developed for banks to private-label and resell to their corporate clients. PAYBOX® combines electronic invoicing, online invoice approval and dispute management, electronic payments, and dynamic discounting.

PAYBOX® provides 5 primary benefits to buyers:

  1. 60% lower invoice processing costs. PAYBOX® allows bank customers to easily upload their open receivables file into Direct Insite’s secure, private-labeled web portal to generate electronic invoices. Processing electronic invoices requires a small fraction of the processing costs of traditional paper invoices, reports Aberdeen Group. In fact, best-in-class companies process 70 percent of electronic invoices straight-through, without human intervention, finds Gartner. Conversely, all paper invoices must be sorted, routed, opened, manually keyed into an Accounts Payable system, stored, and physically retrieved if there is a dispute or inquiry.
  2. 80% faster invoice validation. Paying invoices to terms is the top priority of AP departments, IOFM found in a 2013 study. PAYBOX® enables buyers to view and immediately approve electronic invoices for payment, or “drop” them into an electronic workflow for approval or dispute based on pre-configured business rules. Automatically validating electronic invoices using an electronic workflow eliminates the need for buyers to manually key invoice information to ensure that a supplier is of good standing, the vendor name and number match, the terms match the vendor master, or that the appropriate PO information is on the invoice. Importantly, electronic invoice validation and approval is 80 percent faster than traditional paper-based processes, based on the results achieved by Direct Insite customers.
  3. Thousands of dollars a month in savings from fewer supplier inquiries. The PAYBOX® web portal provides suppliers with an acknowledgement that payers received their electronic invoice, as well as the real-time status of electronic payments scheduled to be made through the solution. This eliminates the need for suppliers to contact a buyer’s call center for invoice and payment inquiries. When you consider that each invoice or payment inquiry to a call center costs a buyer $3.66 (based on feedback from Direct Insite clients), the savings from the self-service PAYBOX® portal can easily save a buyer thousands of dollars a month.
  4. Millions of dollars in cost-of-goods savings. PAYBOX® facilitates dynamic discounting and supply chain financing offers between buyers and sellers. Financing options allow buyers to lower their cost of goods in exchange for faster-than-contracted payments. Dynamic discounting offers may also strengthen a buyer’s relationship with cash-strapped suppliers.
  5. Bigger p-card rebates. PAYBOX® enables buyers to pay suppliers electronically using p-cards or the Automation Clearing House (ACH) Network. This functionality helps drive a buyer’s p-card utilization, potentially resulting in tens of thousands of dollars a year in rebates.

Lower costs, faster invoice processing turnaround, reduced cost of goods, better working capital management and bigger p-card rebates – any one of these benefits is a good reason for buyers to use PAYBOX®. Together, they provide a truly compelling value proposition for the service.

Want to learn more? Contact me at jim.mcshea@directinsite.com.