US-based multinationals plan to invest in AP, AR
To alleviate the problems associated with legacy cross-border payment transactions, a growing number of international businesses plan to invest in digital innovations at some point over the next three years.
Among international companies in the United States, 31% plan to invest in technology capable of automating Accounts Payable (AP), 36% intend to invest in technology capable of automating Accounts Receivable (AR ) and 25% plan to invest in straight-through processing capabilities. in the next three years, according to the Cross-Border Enterprise Payments Innovation Playbook, a PYMNTS and Payer collaboration.
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This commitment shows that transparent and simplified B2B payment transactions are a key service that marketplaces and digital platforms can offer to increase the value they offer to suppliers while gaining a competitive advantage in an increasingly international market. more digital.
Payment flow management
This is especially important at a time when global supply chain constraints have become a headwind slowing the pace of e-commerce growth, and anything that can reduce costs and make businesses pay sooner is in the works. demand.
See also: Onboard new customers, reduce transaction costs, and improve Payoneer results and prospects
In this environment, international merchants need to be able to seamlessly make and receive cross-border payments from sellers and suppliers in order to efficiently manage their payment flows and keep their business running smoothly. The problem is that cross-border B2B payments are notoriously fragmented and driven by friction.
Legacy B2B payment transactions that rely on correspondent banking and manual processes prolong open time to sell (DSO) and lack the transparency decision makers need to make informed judgments about their cash positions.
U.S. businesses wait an average of 33 days to receive payments for international sales, and those who cite payment transparency as a major issue wait an average of seven days longer to receive payments than those with more transparent payment operations .
Invest in end-to-end solutions
Payments decision makers around the world are realizing that to help them maintain their competitive edge in the global marketplace, they need to invest in end-to-end payments integrations designed to optimize both their AP and AR payment flows.
Businesses of all shapes and sizes are increasingly aware of the benefits that payment digitization and AP/AR integration can bring to their bottom line, in cross-border and domestic contexts. PYMNTS research shows that 83% of all chief financial officers (CFOs) see improved AP/AR integration as a primary benefit they seek to derive from digitizing their broader payment operations, while 50% who have invested in payment digitization in the past 19 months have done so specifically to deepen their AP/AR integration.
Although CFOs believe digitization and AP/AR integration are important to optimize their payment operations, most say their companies lack the in-house expertise and technology resources they need to reach the level of digitization and integration they want. The trick is finding the right third-party provider to provide the end-to-end integrated solutions that can streamline their operations for cross-border success.