DadeSystems is very grateful to have great customers, partners, and a team of dedicated professionals who endured 2020 like the rest of the world. Thankfully, our operations were unaffected by our office closure due to COVID-19 and, most importantly, our staff has been healthy throughout the pandemic. Today, we continue to operate with our offices closed and the travel by our employees restricted, but we are all hopeful now that vaccinations have begun.
As the pandemic increased later in Q1 of 2020, we saw our customers’ payments begin to fall as businesses closed and most of the U.S. started to abide by the shelter-in-place work orders. Fortunately, while our customers needed to re-tool their operations, because of our closed architecture, AR teams could operate remotely. Operations were impacted if payments were received in the office, but many businesses quickly moved the payment scanning into team members’ homes. Other physical forms of payments have shuddered, and many companies began to see increases in electronic payments as a result.
Our DadePay solution easily handled the shift to electronic payments. For companies without integrated receivables automation, electronic payments cause more reconciliation challenges, with companies spending more time reconciling and processing them than they do for paper payments. Without automation, companies dedicate more people to the reconciliation challenge — which increases the costs per payment and ties up the AR staff on manual reconciliation when resources are limited.
The second trend our customers experienced was the increase in alternative payment options for their customers. The DadePay ePayment portal saw increases in payment volumes and allowed customers the flexibility to:
- Make or schedule payments
- View invoice information through a self-service portal
The benefits are not only convenient for your payers but reducing your call center and accounting team from handling questions about their invoices.
DadePay Mobile AR was also beneficial for our customers. For example, as branch offices were closed, Mobile AR was used to process the payments received in these offices. When companies’ AR personnel downloaded the app and processed payments, they didn’t need to go to the office or take scanners home anymore. While Mobile AR cannot replace high-speed scanners for volumes of payments, it can be used very effectively to handle small batches of payments. Unlike remote deposit capture or mobile RDC, DadePay Mobile AR processes the deposit and matches the open receivables, thereby substantially increasing efficiency.
DadeSystems also released a very innovative payment request solution in late 2019: DadePay PayNow.
- PayNow requests a customer’s payment by sending a text message or email to a customer.
- The customer receives the message for payment, they click on the link with their mobile device (tablet or smartphone) and can take a picture of the front and back of the check exactly like a mobile deposit.
- PayNow deposits the check payments directly to your bank and updates the customers’ accounts with the invoices paid.
PayNow can be used for new customer orders, collections, or holds that are pending payment. Additionally, PayNow can request your customers’ payments in a batch mode based on specific criteria (days past due, coming due date, etc.), which further increases efficiency and will lower your days’ sales outstanding.
The outlook for 2021 is very optimistic, and we all need to stay with the current mandates a bit longer while we get the vaccinations to a level that we can begin to return to a more traditional business environment.
With AR automation and the latest technological advances, Fintechs like DadeSystems can help companies increase efficiencies, lower the cost per payment and improve customer service or the customer experience.