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What every CFO should look for in a payments provider
Published: June, 28th 2024
One of the biggest responsibilities that CFOs are tasked with today is digitising systems and processes to gain efficiencies and proactively manage the cash flow requirements of their business. Given the range of options and the complexities involved in enhancing payment processes, pinpointing the ideal solution can be challenging. This short guide outlines the benefits of embracing digital payments and what CFOs should look for to evaluate and determine the best solution for their company.
The benefits of digital payments are two-fold
Implementing a digital payment system delivers both strategic and operational benefits. Some of the key benefits of processing payments through an integrated system include:
- Realising savings on time and fees
- Minimising the time your staff spend on manual and repetitive tasks
- Making more time available for strategic, high-value work
- Gaining better visibility of how and when payments can be made using business intelligence and analytics dashboards
- Automating invoicing and payment processes, with straight-through processing achieved for most supplier payments
In addition to the benefits your organisation will gain, your suppliers will enjoy a better payment experience and be able to adopt new payment methods at a much faster rate. The optimal solution for accounts payable teams will make supplier and customer payments seamless while delivering benefits internally.
How to identify the right payments provider
Some payment solutions may transform a single task within your end-to-end payment processes, but you should look for providers that take a holistic approach to maximise your return on investment. These providers should build solutions that deliver strategic, financial, and operational benefits across the business while improving the payment experience for your suppliers and customers. Before you start assessing providers, take the time to engage with key stakeholders and understand the various pain points across the business in your payment systems and processes. From here, you will know exactly what problems the provider needs to address.
Once you understand the blocks and pain points in your company’s payment systems and processes, start researching vendors and shortlisting the providers you’d like to meet with for a demo. One of the easiest ways to gauge whether the provider you’re assessing is the right fit is by asking lots of questions throughout your demo. This time should be used to understand their product and whether it meets your business’s unique needs.
Key questions to ask your potential payment provider
The questions you need to ask potential providers to determine if they are the right fit for your business will depend on your unique situation. However, some general questions can help you better understand the provider and what it will be like to partner with them to improve your payment systems and processes.
These questions are outlined below.
Alignment
Use your demo time with the vendor to understand their product and whether it meets your unique needs.
Innovation
Consider how many parts of your business the vendor will help. Opt for holistic solutions rather than needing multiple vendors to deliver the same result.
Supply chain benefits
Make sure your chosen provider delivers benefits to your customers by making it easy for them to make payments while delivering benefits to their cash flow, too.
Transparency
Do they have a transparent working process?
Are they open to adjusting their process to your specific needs?
Check that the vendor is transparent in how they work and what they can do to best meet your needs.
Roadmap alignment
Discuss your business’s roadmap with the vendor to determine if you and the provider are a good long-term fit.
Development style
What is their release rhythm?
Do they have feature toggles?
Does the company use component-based software engineering? What is their developer demographic?
Take the time to understand how the provider manages developments on their platform. Make sure you ask about how they build and roll out developments and what the troubleshooting process is if you’re experiencing problems.
Transform your financial processes and improve cash flow with Spenda
The right integrated payments provider should offer a multi-tenanted cloud environment with low-code and API solution options. These solutions allow your company to transform its payment systems and processes without the need for large in-house technology resources and capabilities. Use the information and questions outlined above to help guide your conversations with potential vendors and determine whether they are the right fit for your business. And remember, the best integrated payments platforms should deliver process and cash flow benefits to not only your business, but your customers and suppliers, too.
Spenda’s latest whitepaper: How the right payment solution can transform your supply chain covers everything you need to know when choosing the right payment solution for your business.
Spenda is an integrated business platform that enables businesses across the supply chain to sell better and get paid faster. We serve as both a software solutions provider and a payment processor and deliver the essential infrastructure to streamline business processes before, during and after the payment event. Our connected platform displaces multiple disparate systems in favour of one collaborative solution that improves transactional efficiency between businesses.
This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.