Small business processing automation benefits more than small business
Besides small businesses, other players in the payment ecosystem can profit from improved adoption of straight through processing (STP) solutions by the small business segment.
A/P solutions providers, processors and corporate payables departments at mid- to large banks can often have as much as 70% or more of payments that cannot be delivered via virtual card due to the supplier’s inability to accommodate the manual reconciliation of other relevant information, leaving them to rely on the same old costly and archaic delivery methods.
By improving STP processes for small business, these players will greatly expand their reach of serviceable suppliers, resulting in higher revenues and better service for the clients they serve.
To realize the full potential of STP using v-cards, the payment industry must continue to broaden the reach of its networks so that more SMBs are capable of accepting v-card payments.
Breaking down traditional v-card acceptance barriers—like delivering payments via the small supplier’s preferred delivery method, such as web, IVR, phone agent, email, and secure fax is key to increasing SMB acceptance rates.
There is an opportunity for fintechs to serve SMBs with systems that address their key challenges including: Consolidation of the v-card payments that provides a view of all current and past activity; automated v-card settlement to their account, which saves time and reduces fraud risk by removing the manual element of entering credit card information; and assistance with posting the payment to their accounts payable systems.
Existing fintech solutions do not effectively serve the needs of SMBs, such as simplifying user interfaces, minimizing the authentication processes, and facilitating the downloading of remittance information to commercially available products like QuickBooks, Xero and others.
In order to serve SMBs, Fintechs must be creative and flexible in their approach to developing new tools and systems for this market.
Fintechs collaborating to develop STP solutions for SMBs is a tide that lifts all boats. Not only will the suppliers benefit from the efficiency and cost savings of automation, but other players in the ecosystem who deliver payments will also benefit through an increase in electronically delivered payments, generating revenue and improved service for their clients.