INDUSTRY SPOTLIGHT: Paymerang’s Growth in the Hospitality Industry Reaches Record-Breaking Levels in Two Years
Paymerang has achieved unparalleled growth in the hospitality industry over the past two and a half years. Currently, 4 of the top 10 domestic U.S. management companies use Paymerang’s world-class Accounts Payable (AP) Automation, further exemplifying Paymerang’s success within this sector.
Partnering with M3 Accounting Services, the hospitality industry’s leading cloud-based financial and data management platform, propelled Paymerang’s expansion within the vertical. Since 2020, Paymerang has experienced a 1,786% increase in dollars processed for hospitality clients, a 1,204% increase in the number of vendors paid by hospitality clients, and a 1,619% increase in the number of payments processed by hospitality clients. Paymerang has processed payments for over 900 hospitality entities and properties this year alone.
“Paymerang boosts efficiency and safeguards payments in the hospitality industry,” said Michael Prall, Vice President of Paymerang. “This allows hotel owners, managers, and operators to focus on improving their bottom line while also providing a wonderful guest experience.”
Paymerang’s growth in hospitality is also driven by its commitment to connecting with key members in the industry. Corporate Allied Partners include Hospitality Financial and Technology Professionals (HFTP) and the Asian American Hotel Owners Association (AAHOA). Additionally, referral partners include Club Essential and, once again, M3.
“Paymerang’s partnership is invaluable to M3,” said Kristy Ingram, M3 Partner Channel Sales Executive. “They have streamlined the Accounts Payable process for thousands of hotels across the country, saving our clients countless hours while helping keep them safe from fraud.”
Paymerang’s powerful finance automation technology eliminates fragmented payment systems and provides a single, streamlined solution for the lodging industry. Fractional solutions have always been a challenge for hotels, but they quickly became an even more significant hurdle once the pandemic started and caused substantial disruption in 2020. During that time, the industry suffered revenue losses averaging $2.4 billion in weekly lost wages1, and nearly 3.9 million hotel-supported jobs have been lost since 20202. Paymerang’s Payment Automation technology helped its hospitality customers navigate staffing shortages and heavy turnover by eliminating the manual, repetitive tasks that overwhelm AP staff and providing business continuity.
Adding to the list of benefits of Paymerang’s Payment Automation is greater security and enhanced fraud protection. A 2020 global study by the Association of Certified Fraud Examiners (ACF) determined that the typical organization loses 5% of revenues yearly because of fraud3. The median loss for the food service and hospitality industry estimating $114,000. For hotels, data shows that organizations lose 5% to 6% of annual revenue from fraud perpetrated by employees and guests.
The number of check fraud occurrences remains high in the hospitality industry because of the reliance on manual processing. Organizations implementing Paymerang get increased security benefits through encrypted account data and multi-factor authentication. Paymerang also has internal security measures to stop hundreds of fraud attacks against clients and has saved companies millions of dollars each year. Additionally, Paymerang provides users with Positive Pay, an automated cash-management service companies use to deter check fraud. Banks use Positive Pay to match the checks a company issues with those presented for payment, and any check considered suspect is sent back to the issuer for examination.
When employees no longer must spend extra time on manual accounting processes like cutting checks and payment reconciliation, they can focus on other initiatives with the thousands of hours they save annually by switching to an electronic payment system. These include financial performance, guest retention, property management, and employee learning and development opportunities.
Paymerang recognizes that hospitality professionals are challenged with fewer resources in today’s rapidly changing economy and labor market, creating a critical need for AP automation. Implementing Paymerang takes less than 10 hours, and seamlessly integrates with a range of ERPs, including M3 Accounting Services, Microsoft Dynamics, and Sage Intacct, Inc.
Paymerang is pleased with its growing presence in the hospitality industry and looks forward to increasing its market share. As Paymerang continues to grow, it commits itself to transforming hospitality finance and providing an effective solution to fragmented systems.
1Oxford Economics and Hotel Effectiveness
3ACFE: 2020 Report to the Nations on Occupational Fraud and Abuse