Learn how mobile can solve the payment-in-hand problem and identify key considerations for successfully adopting it. An Interview with Doug Hathaway, CTO
Mobile payment acceptance can be a powerful part of an accounts receivable strategy, yet many businesses overlook or underestimate the many ways in which this technology can drive meaningful process improvements. Often, companies believe they’re fully utilizing the capabilities of mobile when there are still additional opportunities to seize and greater efficiencies to realize.
When fully implemented, mobile AR capabilities can:
- Enable your customers to easily pay with their preferred payment method while keeping your per-payment processing costs low
- Reduce the time it takes to process a payment from minutes (or hours) to a matter of seconds
- Streamline reconciliation, introducing more speed and accuracy into the process
- Ultimately, speed your business’ access to cash and your ability to replenish customer credit
- Enable sales and other field teams to reduce time spent on trips to the bank to deposit payments, freeing them to spend more time on customer-facing responsibilities
We sat down with Doug Hathaway, our CTO and founder of DadeSystems, to understand his perspective on the power mobile holds for an AR strategy.
What types of businesses can benefit from mobile integration into their AR process?
Any business that is accepting payment directly from their customers can benefit from integrating mobile into their accounts receivable process. Through our app, businesses can accept both check and credit card on the spot, processes the payment within seconds, and connect it to their ERP or financial system for accurate association for the AR department.
Some examples of businesses that have found success with our mobile integration include those in the home services, distribution, building supplies, and manufacturing industries, as well as companies with a high volume of walk-in payments.
What are the key considerations for an AR department that is considering adding mobile payment acceptance?
Customers increasingly expect to be able to pay by credit card. With the ability to accept credit cards via mobile devices, your business can meet your customer where they are when they are ready to pay—eliminating the risk of losing the sale solely due to method of payment.
By consolidating a multi-step payment process from deposit to cash application into a single step increases the productivity of an AR department, field personnel, and the business overall.
Centralizing cash application ensures that the AR department remains in control of how payment is applied, rather than allowing decision-making in the field that can create confusion, errors, and inconsistencies.
How does mobile impact the AR department?
Whether check, cash, or card payments are made in person or at the office, mobile AR capabilities mean that cash application is centralized to the AR department, arming them with information provided by sales so they can quickly and accurately finalize the decision on how to reconcile and post the payment.
This reduction in reconciliation time reduces DSO and speeds access to cash and customer credit replenishment. By deploying automated mobile payment capture and cash application technologies, AR employees find greater job satisfaction as they can be more proactive and take on a broader range of responsibilities, including inbound customer information requests and following up on credit inquiries and applications.
How does mobile change day-to-day responsibilities for sales and field reps?
Sales representatives, delivery drivers, and other field personnel enjoy mobile payment collection capabilities because they can provide an easy and positive payment experience for the customers they work with and reduce time spent on administrative tasks such as finding a local bank to make a deposit. Holding on to customer payments from the point of collection until they arrive at a bank introduces unnecessary time and risk into the process and lacking a mobile device with the ability to process a card payment can impact a customer’s ability to pay on the spot.
With mobile AR capabilities, field employees’ time can be redirected toward revenue-generating, customer-facing activities.
How does mobile impact the customer experience?
Customers enjoy having the choice of payment method and the reassurance that their payments were processed quickly and accurately. Mobile AR capabilities can provide receipts back to customers for their own record keeping.
What does the future of mobile payment acceptance look like?
Mobile means more payment options! Having the capability to efficiently accept payments via mobile creates a more nimble and efficient business that is ready to adapt with your customers preferences and advancements in payment technologies.
Credit card acceptance is opening new possibilities for companies looking to diversify payment options within a single app.
Integrating mobile into an AR strategy comes with many benefits that impact field employees, AR teams, the customer, as well as the overall financial health of your business. By replacing an outdated field payment collection process with a streamlined mobile process from receipt through cash application, your business can:
- Save valuable time for employees working in the field
- Speed payment reconciliation and reduce errors
- Spend more time focusing on customers and provide them with a positive payment experience
- Reduce payment processing costs and bank relationship fees
- Reduce risks of field employees securing payment on their person
- Accelerate payment application and free up customer credit, faster