A PYMNTS Article Featuring Paymerang
This article was originally published on PYMNTS.com
The first was overcoming the burden of manual processes, from invoice ingestion and approval to payment initiation and reconciliation. The second was ensuring that payments to suppliers were made timely and accurately, and the third was B2B payments fraud.
Today, Chanda told PYMNTS in a recent interview, those challenges are largely the same – only amplified in a market marred by volatility as a result of the pandemic. As organizations’ AP departments move to overcome these elevated hurdles, automation technology and payment innovations will emerge as key tools to help them get where they want to go.
Yet unless AP departments and their technology providers consider the supplier in their innovations, organizations will not achieve the desired results in modernization, efficiency and security.
“I think that’s the future of business payments,” Chanda said of the opportunity to consider both buyer and supplier needs within AP departments. In the evolution from lockboxes to bank-sponsored electronic payments to single-payment-file capabilities, the next iteration of B2B payments will be synchronized workflows that move funds and data between B2B partners.
In the midst of the COVID-19 crisis, fraud has blossomed to new heights, and AP departments haven’t been spared. It’s a pain point that hits both buyers and suppliers, whether invoices are forged or fraudulent payments are made. In any case, both the buyer and supplier are at risk of losing money and facing even greater inefficiencies in their workflows.
“Security has become even more important in terms of increased invoice and payment fraud, because now we’re all doing things by email,” explained Chanda.
Indeed, without the proper authorization checks, AP personnel are facing a growing risk of business email compromise (BEC) scams that dupe professionals through fake email addresses and impersonation tactics.
“There are two things in the AP world that support fraud. One is lots of email and not enough talking to each other, and the second is the urgency that has created of ‘let’s get this thing done right away,'” noted Chanda.
Integrated technologies that can automate invoice and payment authorization, while maintaining a secure electronic paper trail of transactions, are important for mitigating this threat.
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