Implementing a Payments Hub: What You Need to Know

A payments hub enables financial organizations to adopt a more integrated accounts receivables solution. More than ever before, innovative end-to-end payments hubs must provide a flexible approach for managing transactions.

Discover why your organization needs to implement a system that integrates with your current treasury system to go beyond the traditional lockbox platform and improve payments processing.

Key Features of an Innovative Payments Hub

The right payments hub has the potential to transform your organization’s AR processes. To maximize the impact of your payments technology, it’s important to focus your search on solutions that include a handful of key features:

  • Online Invoice Presentment – For a more secure and streamlined customer experience, online invoicing allows billers to post invoices through a secure website. Customers then access their invoices through a password-protected account.
  • Electronic Payment Capabilities – Customers are granted visibility into payment amounts, invoice closing dates and different payment options. This increased transparency also allows them to control the amount they pay and their preferred payment method.
  • Online Adjustments and Approvals – Replicating a customer’s billing cycle allows for simpler reviews, adjustment and approvals of e-invoices. Financial institutions and banks can then receive real-time updates on adjusted invoices.
  • Accounts Receivables Integration – An effective payments hub should use remittance data for reconciliation and posting. In addition, the ability to integrate with an existing legacy enterprise resource planning (ERP) platform, lockbox or treasury system is vital.
  • Enhanced Security – It’s important to consider the security ramifications of adopting a payments hub solution. Ensure that the platform includes robust security measures to protect your customers’ data and prevent payment fraud.

Core Benefits of Payments Hub Adoption

Direct Insite’s PAYBOX® solution operates as an integrated payments hub that improves a financial institution’s existing integrated receivables process. Institutions that implement PAYBOX® can benefit from:

  • An improvement in Days Sales Outstanding (DSO)
  • Up to 90 percent in lower invoice presentment costs
  • Straight-through Receivables (STP) posting rates of more than 80 percent
  • Stronger relationships with corporate customers
  • New treasury profit streams
  • Opportunities for profitable supply chain financing

Implement an Advanced Payments Hub with Direct Insite

Direct Insite’s PAYBOX® is a reverse lockbox solution that combines with legacy lockbox and treasury systems to form an integral part of a bank or financial institution’s accounts receivables processing. Combining e-invoicing, online bill payments, adjustments and heightened security measures makes PAYBOX® the ultimate payments hub solution.

Ready to upgrade your institution’s payments hub? Call Direct Insite at (610) 212-2487 or email to schedule a private PAYBOX® demonstration.

AR Management