Top Payment Process Automation Trends in 2021

Automation is gradually becoming vital in payment processes in 2021 and it comes with some major new trends.

US-based company Tipalti has presented a survey showing 76% of the business respondents are willing to automate manual banking activities. 80% of the respondents aim to automate payment reconciliation. They also want to reduce the time the finance staff spends on payment processing. Implementing an automated digital payment system will reduce the time it takes to approve a payment, reduce the time it takes to confirm performance, and also save time to reconcile and confirm payments. Payables automation reduces the time spent and processing cost by 80% through more auditable, controllable electronic payment methods. Manual payment processing has several drawbacks like data entry errors, bank service fees, unsupported payment methods, failed payment, or other communication problems. To avoid these problems, the automation process is gradually growing in the payment sector.

Bye Bye Cheques

The payment automation business case has largely focused on cost savings and accounts payable efficiency. The Covid-19 pandemic and remote work have further bolstered this case. Some companies are reluctant to send employees with cheques for safety purposes and other companies are not willing to receive cheques. The buyers are being asked to start paying using automatic methods. With suppliers adopting digital payments at a more significant rate, cheques are gradually becoming obsolete at a fast pace.

Biometrics is in trend

Biometric authentication is a verification method that involves the biological and structural characteristics of a person. These verification methods include fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and vein mapping. With the rise in the problems of identity theft and fraud, biometric authentication has become a reliable and secure option for automatic digital payments. Biometric authentication also incorporates and provides accuracy, efficiency, and security under a single package. It is a highly secured method since it involves an individual's unique characteristics. It also helps in retaining the customers' trust in the system.

Faster AR Processes

The accounts receivable process of the automatic payment process has become a lot faster with the help of Nacha (National Automated Clearing House Association) and the RTP (Real-Time Payments) network. The ACH remittance data transfer process has a faster pace than before.

The Digital Generation

The new generation has a higher dependency on cutting-edge, automated, quicker, and efficient technologies and services. 90% of younger people like to use online payments as they like to get rid of the practice of carrying money everywhere. From the smallest transaction to bigger money transfer instants, they tend to be inclined towards automated payment methods. This has resulted in the growth of automatic digital payment systems throughout the years.

The Key to Security

Previously, the bank accounts were simply recognized by random combinations of unique digits present on the card. However, the current EMV technology of those used in Europay, Mastercard, or Visa has gradually picked up and introduced customers with a more computerized and secured mechanism for payment. The EMV technology is known for using codes that vary every time a transaction takes place. This use of temporary codes enhances the security in the bank accounts by leaps and bounds. There is also a large chance of the cards getting lost or stolen, which can be completely overcome by using automatic payment methods.