5 Innovative Payment Automation Solutions For Businesses

Without an automated system, submitting invoices, paying vendors, and staying on track with a company’s payments can turn into an unbearable challenge. 

Luckily, today, businesses can automate accounts payable and the entire payment process thanks to the availability of advanced and reliable payment automation solutions. 

In the following sections, we explain what payment automation is and explore some of the most innovative payment automation technologies that enable organisations to streamline payment processes.

What is payment automation?

Payment automation, accounts payable automation (AP automation), vendor payment automation, and invoice payment automation all refer to the same thing. These terms refer to the process of using technology and AP automation software for processing payments with minimal manual tasks, taking a lot of weight off the shoulders of your finance team.

Accounts payable automation solutions are an invaluable asset that can not only help process payments but also provide key benefits. 

Here are some of these key advantage:

• Recording financial data and approving payments; 
• Making transactions via diverse payment methods;
• Automatic vendor, contractor, and supplier invoices and payments;
• No risks of duplicate payments and invoices;
• Streamlined financial operations. 

As a result, payment automation solutions result in significant cost and time savings for any business, no matter its size or industry. 

5 top payment automation technologies

Payment automation solutions rely on a wide range of technologies and features to make all of this possible. As the accounts payable process changes over time, so do the capabilities of some of the best accounts payable software. 

Today, companies are actively relying on B2B payment automation services to enhance their AP processes. Thanks to these solutions, the efficiency and accuracy of accounts payable departments can be dramatically increased. 

Below, we go into more detail into five technologies that payment automation software uses.

AI and machine Learning

One of the factors that has dramatically influenced the way companies manage their accounts payables is Artificial Intelligence (AI) and machine learning. 

Solutions with AI and machine learning capabilities have the power to utilise advanced algorithms and analyse data to help automate activities, reduce errors, and even help identify fraud risks.

These technologies create exciting opportunities for predictive analysis and fraud detection.

Predictive analytics for cash flow management

Among the key benefits of AI is its ability to provide predictive analytics. This enables the technology to empower businesses to forecast cash flows with better accuracy.

The predictive feature is made possible thanks to the analysis of previous invoice data and the close examination of payment patterns. As a result, Artificial Intelligence can uncover specific trends, enabling AP teams to make data-driven decisions when it comes to early payment discounts, financial strategies, and others. 

Naturally, this minimises the chances of erroneous payments and creates more opportunities to save money in the long run.

Fraud detection using AI algorithms

Moreover, machine learning can effectively assess and learn from data, even when it’s in its unstructured, raw form. 

The algorithms that machine learning works with enable the technology to identify patterns in invoice management that may be invisible to humans, potentially uncovering fraudulent invoices. This is key when it comes to fraud detection. 

When it comes to payments, invoice fraud is a serious concern. Together, machine learning and AI can substantially lower the chances of financial losses as a result of fraud.

Automated invoice processing with machine learning

Another area where machine learning and AI are incredibly valuable is the automation of the invoice approval process. 

The ability to learn from previous data enables these technologies to categorise electronic invoices, link them to purchase orders and authorise them only in case they match specific criteria. This capability is incredibly useful as it makes payment processes much quicker and eliminates all the need for manual data entry. 

Teams that manually create invoice data, submit invoices and set up payments usually take longer and cost more. They can also be exposed to multiple risks, including the risks associated with operating with paper invoices without digitising and taking advantage of technology. 

Cloud-based solutions

Another game-changer for businesses of all sizes is the gradual shift to cloud-based AP automation. This technology provides solutions for automating payments in a flexible, scalable, and affordable way.

Scalable cloud payment platforms

One of the first innovations to turn an eye towards is scalable cloud payment platforms that help grow your business.

These solutions offer seamless integrations with your existing financial systems, such as QuickBooks Online or an ERP system. This enables businesses to keep track of everything from invoice payments to invoice status in a single, centralised solution. 

As a result, your entire financial ecosystem will be synchronised, guaranteeing that crucial financial data is always up-to-date, accurate, and reliable. 

Real-time transaction tracking in the cloud

At the same time, real-time transaction tracking in the cloud offers priceless advantages. Among the diverse benefits of cloud-based solutions is that they enable monitoring transactions in real-time, meaning that companies can always be up to date with payment statuses and cash flow. 

As a result, they’re well prepared to make informed decisions whenever necessary, without having to waste time analysing historical data. 

In order to be able to manage accounts payable automation software effectively and with zero disruptions, real-time visibility is a must.

Cloud-based multi-currency support

If you’re a business owner operating a global company, it’s key to assess whether the payment automation solutions you work with offer cloud-based multi-currency support.

This innovative technology makes it easier than ever to handle EDI invoices and other types of payments in multiple currencies. 

In a nutshell, cloud-based multi-currency support simplifies the payment process and guarantees that your business is fully compliant with all financial regulations. This naturally makes international transactions less complex and easily manageable. 

Mobile accessibility

When it comes to payment automation, mobile accessibility is fundamental. Today, the majority of workforces in the UK and around the world are more mobile than before, making mobile accessibility in AP software increasingly important. 

Thanks to this feature, companies can stay on track with accounts payable processes from any location, preventing delays and discomfort throughout the way. 

Secure mobile approval workflows

As you can probably imagine, security ranks among the key features of any mobile-related payment automation solution.

Via this technology, managers and business teams can successfully approve invoice payments and submit invoices with just a few clicks via secure, on-the-go approval workflows. As a result, the invoice approval process can become much quicker and reliable, avoiding time waste, uncertainties, and risk. 

On-the-go expense reporting and reconciliation

In addition, mobile tools make expense reporting and reconciliation (processes that are usually categorised as complex and time-consuming) much easier. 

Using nothing but a mobile device, business teams and employees can submit expenses, add receipts, and reconcile transactions. 

Consequently, all AP processes become more efficient and accurate, optimising otherwise challenging processes. 

Mobile alerts for payment status updates

Best of all, mobile accessibility in payment automation solutions means that you can take advantage of mobile alerts. 

This ensures that all stakeholders and partners are always informed about the status of a payment, guaranteeing that everyone is on the same page in regard to pending approvals, completed transactions, and potential challenges. Mobile alerts take delays out of the equation and help manage cash flow more effectively.

Data security and compliance

Earlier we mentioned that data security is paramount when it comes to payment automation. Let’s dig deeper into the technologies that ensure that you’re always protecting your business and your customers, and are fully compliant with regulations.

The technologies that are used in payment automation solutions for regulatory compliance include encryption, compliance with global payment standards, and blockchain innovations.

Advanced encryption for payment data

Payment data is sensitive and without adequate processes in place – it can be extremely vulnerable.

One of the methods that payment automation solutions rely on is encryption. During the encryption process, data is encoded using cryptographic mathematical models or algorithms. In order to “decipher” this data, you’ll need a decryption key, a string of numbers or a password.

This reduces all risks of data being stolen and even in the case that users gain access to it – they won’t have the ability to steal the information or use it for fraud. Although this is crucial for all businesses, it’s absolutely fundamental for large companies with enormous transaction volumes.

Compliance with global payment standards

Let’s not forget about the importance of compliance with global payment standards, like the GDPR and PCI-DSS.

Compliance is essential for any business, no matter whether it’s operating on a local or global level. However, global companies are usually more vulnerable as they’re exposed to more checks and reviews. 

To meet these standards, payment automation solutions are designed to cover all regulations, making sure that every transaction is as secure as possible and meets both local and global rules and laws.

Blockchain technology for secure transactions

Although blockchain technology is still considered to be in its infant stage, it’s already proving to be reliable in the world of payment automation solutions, especially when it comes to security.

By storing all transaction data on an immutable ledger, this technology minimises fraud risks and also makes all transactions traceable and fully transparent. 

While there are still uncertainties about the potential of blockchain, it’s certainly reshaping how we think about payment automation and AP processes. 

Advanced features of AP automation

Now that we’ve covered the basics in regard to the technologies used in AP automation solutions, it’s time to touch upon some of the most advanced and exciting features in the space. 

Dynamic discounting for early payments

In a lot of cases, businesses work with early payment discounts that are usually provided by suppliers. 

Dynamic discounting for early payments is a feature that handles this part of automatic payments, enabling companies to calculate and apply these savings without any extra manual work. This not only boosts savings and strengthens cash flow, but also reduces the time necessary to perform associated tasks. 

Self-service vendor portals

At the same time, self-service vendor portals are extremely beneficial for suppliers as they create opportunities for vendors to handle their own accounts, manage electronic invoicing, and monitor payment statuses.

As a result, administrative challenges and burdens are reduced, freeing valuable resources from the AP department that can be used elsewhere.

Automated approval workflows

Finally, automated approval workflows are gradually becoming a must in the payment automation solution space. 

They completely omit the necessity of manual approvals so that companies can dramatically lower the time necessary to complete payment processing. This naturally prevents delays from occurring and oftentimes strengthens relationships with suppliers. 

Conclusion

Undoubtedly, the payment process automation landscape is quickly evolving and transforming, creating innovations in areas like AI, cloud computing, and more.

Businesses that adopt these cutting-edge solutions can certainly improve their AP processes, enjoy cost savings, and make sure their accounts payable department functions at its best, with peak performance. 

No matter whether we’re talking about implementing AP automation or syncing with ERP or accounting systems, these innovations provide crucial instruments for staying ahead of the competition in an aggressive business environment. 

Frequently Asked Questions

How to choose the right payment automation solution for your business?

The right choice ultimately depends on the size of your business, your industry, processes, and specific needs. It is best that you research and assess factors like data security, scalability, ongoing support, mobile accessibility, and pricing for all payment automation solutions you are considering.

Do payment automation solutions reduce costs for businesses?

Yes, payment automation solutions can dramatically lower your business expenses by minimising the need for manual work in areas like processing paper invoices, submitting data, and more. They also prevent risks of duplicate invoices and can effectively operate with early payment discounts.

Can payment automation solutions ensure a company is compliant?

Yes, advanced payment automation software solutions are designed with compliance in mind, meaning that they ensure all transitions are transparent, traceable, and meet all expectations and requirements according to both local and global standards.