As the world moves toward digital payments, some sectors have hesitated to shift. For example, when it comes to B2B accounts receivable (AR) and accounts payable (AP), you rarely see digital money transfers. Many businesses are still clinging to the friction-filled legacy systems that require manual processes such as cutting checks and initiating ACH payments. However, while these methods may be tried and true, they're also time consuming, unreliable and can hinder a business, especially in times of uncertainty and disruption.
Executive Vice President at REPAY, Darin Horrocks, recently sat down with Dara Dierks, host of the “Forces in Fintech” podcast, to discuss the state of real time digital payments in the B2B sector. Keep reading to learn more about his thoughts on the demand for digital payments, what to expect in the future and more.
The Rise of Digitization
Many recent changes in the payments industry resulted from increased consumer demands for more automated and convenient payment options. Consumers want to make and receive payments from anywhere and as quickly as possible. Additionally, the impact of the pandemic has driven the rapid acceleration toward digitization. In 2020, businesses faced unexpected obstacles related to sudden office closures and shifts to remote work, leaving them scrambling to ensure business continuity, particularly regarding manual tasks such as processing payments.
During his interview, Darin touched on the increased demand that REPAY experienced from companies seeking automated payment options at the start of the pandemic. Much of this demand came from the automotive, healthcare and hospitality management spaces as they prepared to rid themselves of their antiquated processes. For example, dealership controllers and CFOs sought solutions to replace paper checks and simplify operations during lockdowns.
AP Automation, ERP and DMS
Darin also shared how REPAY has seen great success with its ERP and AP/AR integrations, improving payment processes with automation from a single platform. Customers no longer wanted to rely on multiple systems and processes. Instead, companies aimed to improve their workflow by embedding these solutions into their systems to eliminate manual tasks and automate invoicing and inbound and outbound payments.
REPAY worked with several companies to integrate AP automation into their existing DMS (dealer management systems) or ERPs to provide a new level of convenience.
The Future of B2B Payments with REPAY
To close out his time on the podcast, Darin shared his thoughts on the future of B2B payments. "As companies have adopted electronic payment options, the demand becomes more and more. I see the adoption of more real time payments or FedNow, and the ability to move money faster ... It'll be interesting to see how that reflects on the market and the ability to monetize payments." To hear more of Darin Horrocks's insights on digitizing B2B payments, check out the entire “Forces in Fintech” podcast episode. Contact us today to learn how REPAY's realtime electronic payment solutions can help your business.