Power of PAYBOX®
Use "Reverse" Thinking to Drive Electronic Payments Adoption
Electronic payments adoption is maddeningly slow.
An eye-popping 67 percent of corporations surveyed by the Remittance Coalition say they receive the majority of their business-to-business payments as checks.
All of this is despite the well-documented operational and business benefits of electronic payments.
So what gives?
The root of the problem may have less to do with the payments themselves (e.g. “it’s tough to convince customers to pay electronically”) than with their associated remittances.
One third of corporations surveyed by the Remittance Coalition cite customers’ inability to “apply” electronic remittance information as a top barrier to electronic payments adoption. Similarly, nearly 40 percent of corporations surveyed by the Association for Financial Professionals (AFP) identify customers’ inability to send remittance information as a barrier to electronic payments adoption, with more than 10 percent of these respondents describing it as a “major” barrier.
Not surprisingly, 88 percent of corporations say they receive remittance documents via e-mail that need to be manually re-keyed, according the Remittance Coalition’s survey. Only 32 percent of corporations receive an electronic remittance file that can be automatically reconciled.
It is no wonder that more than 70 percent of large corporations tell Aite Group that any of their receivables have incomplete or inaccurate data that are causing a growing number of exceptions.
Against this backdrop, the solution to streamlining receivables processing, and driving electronic payments adoption, is to solve the challenges in the electronic delivery, reconciliation and posting of remittance data.
A reverse lockbox does just that. It addresses the points of friction in traditional receivables processes that have held back the adoption of electronic remittances:
- A reverse lockbox makes it easy for suppliers to generate electronic invoices and for payers to return electronic remittance information, eliminating the need for manual keying and significantly reducing exceptions related to incomplete or inaccurate data.
- A reverse lockbox provides online collaboration tools for streamlining exceptions.
- A reverse lockbox facilitates electronic payments via card and ACH and automates the verification of correct payment receipt.
- A reverse lockbox seamlessly integrates with a supplier’s back-end accounting and ERP systems (or other financial systems, including its existing lockbox platform). A reverse lockbox also integrates with a payer’s existing invoice processing and payables systems.
- A reverse lockbox can consolidate information for all paper and electronic receivables.
Want to learn more? Contact me to arrange a demonstration at 610-212-2487 or via e-mail at email@example.com.