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How Partnering with a Fintech for Faster Payments Can Better Business Finance

April 17, 2020

One of the trends CFO’s are taking advantage of is the way faster payments can drastically change the way businesses make and receive payments — this can be a big win for finance.

A check fulfills the three basic elements every disbursement method must have: It moves the money from business to person, it allows the work flow around the funds to be managed from the business to the person and it transfers the information about the payment along with it.

The certainty around that has a pull for some individual consumers and small businesses (SMBs) — but COVID-19 has drowned some of those ties and highlighted the importance of business continuity, physical safety, the ability to make and receive payments while businesses are operating on more limited hours and with more restrictive guidelines.

The pandemic has also highlighted the importance of optimizing all areas of cost savings across organizations as well. Alternative payment methods have proven to be a necessary commodity in today's economy.


The Shift towards Digital Payments

As a result, organizations are reassessing their bill payment capabilities as consumerization in payments evolves. Consumerization is driven by factors such as shifting customer expectations and emerging technologies. Leaving these factors unchecked presents customers with sub-optimal payment experiences that foster frustration and lead to costly bad payment behaviors.

What was once a relatively simple transaction, usually involving handing over cash or writing a check, has evolved into a wide range of transactions involving many different payment methods and channels. That’s according to Aite’s recent report, U.S. Consumer Experience: A Blueprint for Creating Positive Behaviors.

Payment solutions aren’t just evolving in B2C transactions, though. CFO’s are realizing more and more that improving payment processes through digitizing payments and offering options that work well with partners and suppliers can improve efficiency, decrease costs, and bolster net revenue in the same way B2C payments have.

Payment solutions that are optimal for all parties involved whether they are B2C or B2B, have a tremendous financial impact on the businesses bottom line.


Fintechs Bringing Better Payment Solutions

Fintech companies are working with businesses not just to solve specific use cases, but to optimize cash flow and increase revenue by utilizing multiple payment options and Open API’s to connect businesses to other businesses and to their customers.

They are bridging gaps that have previously been accepted areas of grief, and CFO’s know that digital payments are creating opportunities for organizations to improve their financial circumstances in multiple ways by moving beyond the limitations of checks, card, and ACH into the inclusion of alternative payments.

(Tyler Palmer, Founder at PayClearly, emphasizes the role Fintechs play in bringing better and faster payment solutions)

Partnering with more limited fintech’s means that you will likely require a new partnership or multiple partnerships in the future. Choosing a fintech that offers an Omni-Channel Pay-In / Pay-Out Platform allows businesses to “turn on” various functionalities as required by their business is a good first step. This allows businesses to prepare for use cases that don’t necessarily exist yet. In a market that’s evolving as quickly as payments and user experience that’s a big win.

A second consideration that will ultimately create a win for businesses moving forward is choosing to  partnering with a fintech that has committed to a robust and growing Open API offering in order to integrate into your existing TMR or ERP.

In the UK there are already regulations around open banking requirements to allow customers to maintain control of their personal data. Even though the U.S. doesn’t currently have such requirements, forward thinking CFO’s know that it’s likely coming sooner than later, and they prepare for the future by choosing a fintech with a commitment to growing Open API’s as well.

If you’re ready to explore digital payments options and better your businesses finances, Transcard wants to speak with you.

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