Corporate America still likes to make payments using checks. While payment trends continue to shift to more electronic payment forms, we continue to see our customers frequently getting paid for business-to-business (B2B) transactions with checks. The Association of Financial Professionals’ last payment research study shows that 51% of the B2B payments were paid by check. While paper payments slowly decline, the use of ACH payments is growing rapidly. According to NACHA, over 24 billion ACH business payments were made, and the year-over-year growth rate was 9.4%. And corporate treasurers expect that in the next three years, the majority of their payments will be made by ACH according to Aite research.
Corporate treasurers are managing these payment trends with more manual effort than ever, reporting a staggering 88% of their remittance data being re-keyed. In many cases, treasurers are outsourcing the keying to a lockbox provider for paper payments. While this reduces the direct labor for the company, these are costly services and creates more exceptions. Moreover, most companies today do not have electronic payment automation and are keying the remittance data, which arrives from emails, attachments like PDFs or spreadsheet files, downloads from biller sites, or electronic data.
DadePay AR Automation solutions can solve all of those challenges for the corporate treasury. Automate paper and electronic payments using AI to increase your department’s efficiency, significantly reduce your direct and indirect costs, and improve customer service overall!