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Accelerate cash flow and reduce costs with digital payments
- 1. Accelerate Cash Flow andReduce Costs with Digital Payments
- 2. • Introduction &Definition of Digital Payments • Benefits of Digital Payments • Increased Cash Flow • Reduced Costs • Improved Customer Experience • Other • Customer Success Story • Conclusion • Questions Agenda
- 3. 3 Introduction & Definitionof Digital Payments • Digital Payments are also known as Real Time Payments (RTP), and “Frictionless Digital Payments” • Digital Payments are made directly between buyer and seller through a direct, secure, internet connection on an Account to Account (A2A) basis, aligned with banking channels • They enable payments from buyer to seller via a wide range of mobile devices and in multiple currencies, through Internet on Account to Account (A2A) basis • The advantages for B2C are obvious: Immediate payment on delivery via mobile devices. Extension of credit not required.
- 4. 4 Benefits of DigitalPayments: Cash Flow • The convenience of Digital Payments appeals to small and medium size B2B customers & B2C customers. Many Small and Medium size businesses (SMB), do not usually perform administrative tasks during standard business hours. The ability to pay vendor invoices off-hours is a necessity for them, and often results in their paying invoices earlier. Stripe claims 75% of invoices it delivers on behalf of its clients are paid same day (with same day availability of funds)! • Payments can be made via a wide range of mobile devices, magnifying convenience • Access to funds received is usually same day vs multiple days of mail and clearing time for checks
- 5. Benefits of DigitalPayments: Lower Costs Reduced Direct Cost: a. Reduces supplier’s lockbox processing & keypunch charges – fewer checks more electronic transfer (86% cost difference) b. Reduces supplier’s credit & debit card processing fees c. Lowers transaction fees with open banking trends Lower Cash Application Cost: • Digital Payments convey more complete remittance information using common standards to increase auto-cash hit rates and application accuracy • Remit information conveyed with the payment vs 61% of ACH payments where remit info sent separately from payment • Reduces research time on customers’ vendor portal to find additional remit data
- 6. Benefits of DigitalPayments: Customer Experience Enhanced Customer Experience: a. a large & growing number of customers prefer to pay via Digital payments for cost & convenience reasons. If you cannot accept Digital Payments they may seek a supplier who does b. Accommodating customer preferences is a key element of Strategic AR Management c. Digital payments provide quick, low cost access to multiple currencies Your Suppliers will appreciate Digital Payments as well
- 7. Benefits of DigitalPayments: Other Remote Processing (Work from Home) a. The movement toward working from home exposed the inefficiencies associated with paper invoices and paper checks in the B2B space. Banks were closed. Paper invoices and checks delivered to offices sat in unopened envelopes. Thus, the pivot to digital B2B invoicing and digital payments became an immediate priority for businesses. b. With offices closed, digital payments are best to keep the AR and liquidity management in control. • Digital Payments are excellent for Pay Upon Delivery Customers: a. high credit risk customers b. common practice in some industries (Food Service) c. enable a “normal” order & delivery cycle for these customers
- 8. 8 Digital Payments Optimization •Digital Payments, Digital Invoicing, and a Customer Care (EIPP) Portal are most powerful when offered together • Digital (or electronic) invoicing is preferred and/or required by most customers today • A Customer EIPP Portal facilitates the end-to-end transaction: (a) enabling the payment (b) providing access to the invoices and statement of account (c) providing digital assistant for 24x7 account enquiry • Payments can be made via a wide range of mobile devices • All Invoicing and payment data is captured
- 9. Overview: Global watertreatment solutions provider with $5.6B in revenues . Global Shared Service Teams in India, Poland, and the USA. Digital Payments Solution: Emagia AI-powered Customer Billing, Payment Portal, Digital Payments, & Cash Application. Deployed across 80 business units, 16,000 customers with multiple currencies from multiple countries. Functionality includes straight-through processing of Digital Payments (E-checks and Credit Cards), and customer logging of disputes. Exponential Impact: 1. Accommodation of Customer Preferences for self-serve Digital Payments resulting in increased Customer Satisfaction 2. 92% auto-cash hit rate 3. 60% reduction in operations cost to process payments 4. Substantial reduction in past due AR to 15% of total AR, and exposure to Bad Debt Customer Success Story 6M Transactions 85% Current AR 100% Customer Touch 92% Automated Cash Application Rate THE EMAGIA EXPONENTIAL IMPACT
- 10. Benefits of DigitalReal Time Payments Enhanced Customer Experience Increased Productivity in Cash Application Reduced lockbox and bank processing costs Increased Cash Flow & Reduced Past Due AR Faster, more Secure Payments from Customers Improved Customer Experience/Satisfaction Controlled Credit Risk Greater Cash Flow Increased Revenue & Profit
- 11. Conclusion • Digital Paymentsare faster, lower cost, and more secure than paper checks and many other forms of payment • They are preferred/demanded by many customers • They can improve Cash Flow and AR Asset Credit Risk • Digital Payments are necessary for Remote and/or Work From Home Payables operations
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- 13. If you haveany questions or comments about this session, please let us know in the chat box or write to us at info@emagia.com Next Emagia MasterClass Session: Topic: Reduce Lockbox Fees with Data Capture AI Orders Credit Cash Application Collections Deductions Payments Invoicing