Business payments Challenges And Solutions

B2B Payments services are becoming an increasingly essential source of income and a driver of loyalty for any business organization. Payments-related expectations are rapidly increasing in terms of efficiency and ease. Consumers’ payment experiences have been altered by advancements such as mobile and contactless payments. There is no lie that digital payment benefits and are changing the world positively

Payments Processes that are out of date and rely on paper

There are various payment methods. Even in today’s digital age, corporate payment systems remain paper-based, hard, and tough, with manual reconciliation between purchase orders, items received notes, bank accounts, Accounts Receivable, Accounts Payable, and customer contracts still popular.

Manual checks are also required in many corporations to verify the validity of customers, business partners, and products in transit.

These physical processes are difficult and expensive to modify in order to increase efficiency with new standards.

Lack of Visibility in General

Effective reporting is critical in commerce, treasury, and any other kind of payment transaction.

Additionally, corporations must monitor and report on payments data in a variety of ways—financial, non-financial, regulatory, and commercial.

However, because of stored systems and crushed payment processing, payments data is often collected in different formats and systems, resulting in inaccuracies, inefficiencies, and increased manpower.

Businesses that depend on conventional payment methods

The business-to-consumer category is continually undergoing significant digital change (access to many applications, new payment technologies such as UPI, demonetization, etc. ), fundamentally altering how consumers trade.

However, companies continue to depend on outdated payment processing systems.

This was mostly attributable to two factors:

• Banks’ primary concentration remains on large-scale activities.

• The banks’ failure to consumerize new financial technology via the use of software products/tools that meet the demands of existing enterprises.

Payment technologies such as UPI, which are now exclusively available to the B2C sector in India, will further accelerate the adoption of Digital Payments if they are made available to the B2B segment.

Internal Finance Operations are in disarray.

Businesses handle day-to-day operations using spreadsheets, email, and a bank current account, cheques, or cash.

Payments, although a critical component of Financial Operations, remained separated from existing operations.

How Can Denarii Pay Assist You in Winning B2B Payments?

Finance Automation Software Implementation. Managing corporate payments is not easy, much more so when data and technology are dispersed and procedures are manual.

Denarii automates the following five critical areas, which account for the lion’s share of these laborious & repetitive tasks:

Capture: By collecting transactions across all departments, we decrease data entry.

This is accomplished by: – Directly recording digital transactions conducted through banking APIs and payment instruments (Prepaid Cards, Wallets) used by employees to transact.

– OCR is used to capture cash transactions.

Record: Structuring the gathered data and ensuring that all business systems are up to date (Like accounting systems)

Verify: Check these transactions against corporate regulations and, if required, have them manually validated.

Process: Pay suppliers on schedule, reconcile advances and reimbursements, and monitor receivables collection.

Reports: Deliver reports on these transactions to the appropriate parties.

Denarii Pay, cloud-based financial management and governance system, supports a variety of payment instruments via partnerships with numerous banks and payment partners.

Gain an edge over the competition by:

• Obtaining real-time insight into your monetary position.
• Using cash positioning and forecasting to improve cash management decision-making.
• Managing several bank connections from a single location.
• Attaining compliance via the use of capabilities that permit the separation of roles.
• Increasing the efficiency of cash pooling, sweeping, and zero-balancing.
• Integrating the new accounting software with the current bookkeeping software

Denarii Pay provides communication and collaboration among the many parties involved in each transaction (Sender/Reviewer/Finance Teams/Vendors) while also offering total visibility to the Finance Team.

Our technology stack consists of the following:

•  An intuitive, flexible solution that grows with the company to handle all business spend and revenue.
• Integrated payment interfaces that enable transactions to be recorded automatically while reconciling them to their associated invoices/receipts (OCR).
•  A financial team’s automated repetitive chores ( some ML here).
• Providing total real-time visibility into business spending (Travel Expenses + Petty Cash Expenses + Procurement) in comparison to revenue received by projects/cost centres/departments/categories.
• Microservice design enables seamless integration and collaboration with all current business systems.
•  Businesses handle transactions using a variety of payment instruments.It cannot be restricted to a prepaid card system, much more so in a cash-based culture.

While we advocate for digital transactions, we also give comprehensive assistance for cash transactions, as we recognize that companies who trade with a network of Vendors/Employees cannot make this transition overnight.

This transformation will be slow for the company, and the concept of digital transactions must be cross-sold to the business.

Due to the fact that payments are usually made between two or more parties, B2B payments have a significant potential to generate a network effect.

Consider a firm with 300 workers. This enterprise would do business with over 50 Vendors. This enterprise becomes a source of revenue for these fifty Vendors. If the source is cashless, the source encourages 50 other businesses/vendors to accept digital payments.

Denarii’s automated collection solution enables businesses to automate their invoicing and payment tracking.

Each of these vendors/businesses may further distribute pay to their workers digitally if they are a source of revenue for several employees.

Denarii Pay equals Software as a Service + Payment Instruments (UPI/ NEFT/ IMPS/ RTGS/ Prepaid Cards/ Credit Cards). 

Throughout this era, the B2C market saw significant digital change (access to various applications, new payment systems like UPI, demonetization, and so on), fundamentally altering how customers trade.

However, we discovered that companies continued to depend on conventional payment methods.

This was mostly attributable to two factors:

• Banks maintained a concentration on large-scale businesses.
• Banks’ inability to consume new financial technology via the use of software products/tools that meet the demands of existing enterprises.Payments, which are a critical component of financial operations, have remained unconnected from existing activities.

Additionally, payment technologies like UPI, which are now only available to the B2C sector, will accelerate the adoption of Digital Payments whenever they are made available to the B2B segment.

We anticipate that the future generation of finance teams will spend less time on manual tasks such as processing vendor payments, reconciling invoices, and managing advances.

They would be responsible for crucial activities such as assessing and monitoring vital indicators pertaining to the business’s development.