How all-in-one payment solutions can help SMBs
Small and medium-sized businesses (SMBs) and Accounts Payable (AP) and Accounts Receivable (AR) managers who manage the payments and invoices they receive know they would benefit from streamlined payment processes — but the path to frictionless payments is not well understood. While most SMBs and payment managers agree that an all-in-one payment solution enabling streamlined business-to-business (B2B) transactions would be desirable, adoption rates are low, in part due lack of understanding of how it works. and how they can be integrated into existing systems.
The Future of Business Payables Innovation: How New B2B Payment Options Can Transform the Back Officea PYMNTS and Plastic collaboration, examines how companies can adopt a proactive strategy to transform AP/AR processes and eliminate friction from B2B payments. The report is based on a survey of 500 SMBs with revenues between $500,000 and $100 million and AP/AR executives with SMBs as clients.
Key findings from this report include:
• Most AP/AR executives believe that an all-in-one payment solution would immediately benefit SMBs. Executives and SMEs agree that more efficient payment processes are needed and see benefit in using a single payment tool to manage transactions. Eight out of 10 executives and six out of 10 SMBs believe that all-in-one payment solutions will immediately save SMBs time. Fifty-nine percent of SMEs believe they would save time and 52% say they would find it easier to manage cash flow if they did. Additionally, 41% of SMBs say such solutions would simplify receivables tracking, 37% believe they would provide the ability to automatically reconcile data, and 32% say they would improve working capital.
Additionally, many SMBs mention that inefficient payment processes have a significant impact on cash flow management, as irregular payment processing times can impact financial planning.
• More than half of SMBs see an all-in-one payment platform as a way to simplify financial management. SMBs surveyed believe that a single payment solution for all B2B transactions would provide better cash flow visibility and support better AP/AR tracking, which is crucial for financial strategies. This visibility is also essential for supplier relationships: companies that depend on a network of suppliers or vendors must be able to count on fast and smooth payments to avoid delays that can impact business operations.
Suppliers and buyers need flexibility in how they receive and send payments. Some of today’s most popular payment methods, such as debit and Automated Clearing House (ACH) payments, are not enough to limit payment friction for both sides of B2B transactions.
• Awareness of all-in-one solutions by SMEs can be a major obstacle to transparent B2B payments. According to our research, many companies have expressed doubts about integrating the technology into existing systems. Four out of 10 SMBs say they use an all-in-one payment platform, but they probably don’t know how to leverage it to manage all of their AP and AR processes.
This lack of knowledge means that many companies may turn to a third-party solution that handles the onboarding process for them, especially when there are limited technical resources available.
To learn how businesses can optimize payment experiences with an all-in-one payment solution, To download The report.