Innovative B2B Payment Solution Providers Challenge Traditional Payment Methods
Financial and accounting professionals have traditionally relied on labor-intensive paper check operations and manual electronic payment (ACH) services to pay vendors and suppliers. But a number of innovative B2B payment solution providers have emerged to offer fully automated or outsourced check and/or ACH processing to deliver significant efficiencies and cost savings. As a point of reference, Bill.com customers typically save at least 40% when they convert from paper checks to its turnnkey check and ACH solutions.
The significant cost savings alone should compel P&L-focused leaders to assess the financial impact of migrating their payment operations to one of these new payment providers for checks and ACH. But many businesses underestimate the costs of using checks and manual ACH services since they do not capture all the staff, equipment, and material costs — which, in turn, leads to an underestimation of the ROI of B2B payment solutions.
Moreover, the new payment providers vary significantly in the capabilities they offer. Some providers offer innovations that boost collaboration with customers and vendors; others provide automated workflows and full payment audit trails; still others deliver built-in fraud prevention. Any prospective customer should consider all of the features and benefits delivered by these solution providers before committing to one.
To help finance and accounting leaders assess the costs and benefits of payment solutions and develop a business case for them, this document assesses the cost drivers of manual check operations, manual ACH services, and the new B2B payment providers. It will show an example return on investment (ROI) calculation of using Bill.com, a new and fast-growing B2B payment solution provider. The next document in this two-part series discusses additional factors beyond cost that a business should consider when selecting a solution provider.