Power of PAYBOX®
E-Invoicing and Electronic Payments: Better Together
For banks looking for ways to grow their electronic payments volume, and to recover some of the fee income lost as a result of recent government regulation, e-invoicing offers a tantalizing opportunity.
Each year, Direct Insite’s global e-invoicing network processes approximately $135 billion worth of invoices – invoices that are validated, verified and are prepped for payment. These invoices are ideal for conversion to electronic transactions. Yet, roughly 60 percent of all business-to-business payments are still made via paper check, industry analysts say. While these paper checks drive lockbox services, a cornerstone of bank treasury services, they create operational challenges for all parties involved.
E-invoicing platforms with integrated payments capabilities, such as Direct Insite’s PAYBOX®, solves the challenges of paper invoices and payments by fully integrating with a bank’s legacy lockbox systems to help facilitate the application of cash to a corporate biller’s AR system, without human intervention. The combination of e-invoicing and electronic payments also facilitates the use of p-cards for business-to-business payments, enabling companies to finally break free of paper checks, in turn, reducing costs, increasing staff efficiency, improving control, enhancing reporting, and mitigating fraud.
The combination of e-invoicing and electronic payments also offers benefits to banks, including:
- Stronger customer relationships
- Improved position on both sides of the payment – biller and payer
- Ability to meet an increasingly common treasury requirement
- A bridge to a next generation lockbox offering
- Increased card issuing and payment
Importantly, driving increased p-card utilization through an e-invoicing platform drives incremental fee income for banks, helping to offset revenues lost as business-to-business payments gradually migrate from paper lockbox transactions and towards e-payments (a near certainty in the next few years). In fact, issuing cards already has become more lucrative for many banks than traditional lockbox services.
Clearly, combining e-invoicing and electronic payments can be a catalyst for driving the adoption of p-cards for AP payments, providing significant benefits to banks as well as their corporate customers.
Want to learn more? E-mail me at email@example.com.