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Automated payments simplify business processes for B2B & B2C

Automated payments support a stronger cash management strategy for B2B operations. J.P. Morgan Managing Director, Industry Head — Technology, Media and Telecom Jennifer Acosta and Managing Director, Integrated Payables, Strategy, and Network Chris Claus talked with PYMNTS’ Karen Webster. Opportunity is especially important for the B2B sector.

Data is the invisible force that decides the movement of money. Acosta’s B2C viewpoint says that data is the most important piece of the process. Data opens numerous product and service recommendation opportunities. It suggests revenue streams for consumer brands, increasingly served in contextual ways. Claus also said that it’s contextual to media-buying platforms to travel booking systems. And generally across corporates into ERPs and other e-procurement systems.

For B2B outfits, automated payments and the data that moves along can become transformative.

Imagining a B2B buying situation, Claus stated, “There’s an invoice that’s raised or purchase order. Having the payment flow through that and tie back to that actual buying situation underneath it — were there any exchanges, shorts, etc. — really helps automate reconciliation. It also provides a mechanism to start offering different pay modalities.

These can be electronic payments, but also faster automated payments sometimes for a fee.” Businesses will pay to get paid faster. Also, real-time data is a necessary ingredient for this to happen at scale.

This, in turn, makes consumer finance and automated payments create reliable revenues. Faster payments help cash flow, and it helps both sides.

Automating payments requires the right stack and partners. Companies with a better digital-first footing are naturally having an easier time with it. On the other hand, legacy operators are facing more hurdles.

Acosta noticed that many media companies were not digital-first using the streaming example. Claus added that most of the business flows are becoming digitized. There are many opportunities there. Acosta added that I want to integrate one time and then let the bank figure it out. The bank can decide how we engage in these different payment types on the back end. Its ease of integration and real-time engagement throughout the process

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